Chipotle Mexican Grill reported mixed fiscal third-quarter results on Wednesday, and its shares rose 7% in extended trading. The company said its restaurant-level operating margin fell from 24.5% to 23.3%.
Net income was $339.9 million, or 27 cents per share, down from $382.1 million, or 29 cents per share, a year earlier. Net sales rose 9.6% to $3.29 billion, driven by new restaurants. Chipotle opened 84 company-owned restaurants and five international locations run by licensees during the quarter.
Same-store sales at locations open at least 13 months rose 2.1%, lifted by a 1.3% increase in average check. CNBC reported that traffic and same-store sales grew as low-income consumers spent more, which it described as bucking industry trends.
CEO Scott Boatwright said on the earnings call that "broader consumer and industry headwinds may continue," but that the company's growth initiatives "are giving us more tools to win in any environment." He said the company has "high confidence" in its performance for the rest of the fourth quarter. CFO Adam Rymer said the company expects fourth-quarter same-store sales growth of about 2%.
Chipotle said sales pulled back in the second half of July as diners grew concerned about raw lettuce due to a cyclospora outbreak, though the company said its own supply was never tied to that outbreak. In August, the chain temporarily pulled jalapenos from Minnesota restaurants after learning its supply was potentially linked to a salmonella outbreak.
For the full year, Chipotle reiterated its forecast for a low-single-digit percentage increase in same-store sales. For 2027, it projects 340 to 360 new company-owned locations in the U.S. and Canada and about 15 to 25 international restaurants.