Chipotle Expected to Post Lower 4Q Profit as Same-Store Sales Fall -- Earnings Preview

Dow Jones
Feb 03

By Kelly Cloonan

 

Chipotle Mexican Grill is set to release fourth-quarter results on Tuesday after the market closes. Here is what you need to know.

PROFIT: The company is expected to post a profit of $318.5 million, or 24 cents a share, according to analysts polled by FactSet. That's compared with a profit of $331.8 million, or 24 cents a share, in the same quarter a year earlier.

REVENUE: Quarterly revenue is projected to rise to $2.96 billion from $2.85 billion a year earlier.

SAME-STORE SALES: Comparable sales, which account for store openings and closings, are projected to fall 2.9%, compared with growth of 5.4% in the year-ago period, according to analysts.

The stock has risen 22% in the last three months and was recently trading at $38.63.

WHAT TO WATCH

--Investors expect Chipotle's results to remain pressured in the fourth quarter, owing to economic challenges felt across the industry as lower-income and younger consumers continue to struggle, UBS analysts say. The company's margins could also be dented by marketing investment and beef costs, the analysts say.

--However, Wall Street sees Chipotle with a better setup in 2026, starting with improved trends in the first quarter, helped by potentially stronger consumer spending due to tax cuts and fiscal stimulus. Investors will keep a close eye on any commentary regarding quarter-to-date sales trends as a result. "Despite lingering macro challenges, we believe CMG remains positioned for improved transaction growth in '26," UBS analysts say, pointing to potential stimulus benefits, among other factors.

--Chipotle also looks like it could benefit from a number of its own aggressive sales drivers this year, including three to four limited-time offerings, up from two last year, as well as on-trend menu innovation with its recent launch of a protein-focused menu, Oppenheimer analysts say. The company is also highlighting its value offering through new advertising, they say. Given such drivers, "shares are well-positioned for a spicy revival story this year," the analysts say.

 

Write to Kelly Cloonan at kelly.cloonan@wsj.com

 

(END) Dow Jones Newswires

February 02, 2026 14:26 ET (19:26 GMT)

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