Mexican fast-food chain Chipotle (NYSE: CMG) met Wall Street’s revenue expectations in Q3 2026, with revenue up 9.6% year on year to $3.29 billion. Its non-GAAP profit of $0.27 per share was 7.1% below analysts’ consensus estimates.

For more on Chipotle, read our free full research report.

"Three consecutive quarters of positive comparable transaction growth demonstrates that our Recipe for Growth strategy is working," said Scott Boatwright, Chief Executive Officer, Chipotle. "We're gaining traction with menu and digital innovation, making significant progress on our high-efficiency equipment rollout, and accelerating our global expansion with entry into three new markets this quarter. These achievements reinforce our confidence in the strategy and our ability to execute as we build Chipotle into an iconic global brand."

Revenue growth

Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can post a good quarter or two, but the best consistently grow over the long haul.

With $12.71 billion in revenue over the past 12 months, Chipotle is one of the most widely recognized restaurant chains and benefits from customer loyalty, an advantage many don’t have. Its scale also gives it negotiating leverage with suppliers, enabling it to source its ingredients at a lower cost.

Chipotle grew its revenue at an impressive 13.1% compounded annual growth rate over the last seven years as it opened new restaurants and expanded its reach.

This quarter, Chipotle grew its revenue by 9.6% year on year, and its $3.29 billion of revenue was in line with Wall Street’s consensus estimates.

Looking ahead, sell-side analysts expect revenue to grow 10.8% over the next 12 months, according to S&P, a slight deceleration versus the last seven years. Its growth trajectory remains attractive given its scale and suggests the market is forecasting success for its menu offerings.

Restaurant performance

Number of restaurants

A restaurant chain’s total number of dining locations influences how much it can sell and how quickly revenue can grow.

Chipotle opened new restaurants rapidly over the last two years, averaging 8.6% annual growth, much faster than the broader restaurant sector.

When a chain opens new restaurants, it usually means it’s investing for growth because there’s healthy demand for its meals and there are markets where its concepts have few or no locations.

Note that Chipotle reports its restaurant count intermittently, so some data points are missing in the chart below.

Same-store sales

A company’s restaurant base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it’s prudent to close some locations and use the money in other ways. Same-store sales provide insight into this topic because they measure organic growth at restaurants open for at least a year.

Chipotle’s demand within its existing dining locations has barely increased over the last two years as its same-store sales were flat. Chipotle should consider improving its foot traffic and efficiency before expanding its restaurant base.

In the latest quarter, Chipotle’s same-store sales rose 2.1% year on year. This growth marked an acceleration from its historical levels, a positive sign.

Key takeaways from Chipotle’s Q3 results

Chipotle’s Q3 results were mixed: Same-store sales narrowly topped analysts’ consensus estimates, but EPS fell short. Shares rose 4.7% to $30.03 immediately after the release.

When deciding whether to invest in Chipotle, the latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation. For more on Chipotle, read the full research report here (it’s free).