Chipotle Mexican Grill, Inc. (NYSE:CMG) shares are volatile Wednesday after the company reported fourth-quarter financial results.
Quarterly Results And Operating Trends
Chipotle reported adjusted earnings per share of 25 cents, beating the consensus estimate of 24 cents. The company also reported revenue of $2.98 billion, beating the consensus estimate of $2.96 billion.
Chipotle said fourth-quarter comparable restaurant sales declined 2.5% year-over-year, reflecting a 3.2% decrease in transactions, partially offset by a 0.7% increase in average check.
Operating margin for the quarter was 14.1%, down from 14.6% in the prior-year period, while restaurant-level operating margin declined to 23.4% from 24.8%.
During the quarter, Chipotle opened 132 company-owned restaurants, including 97 locations with a Chipotlane, and seven international partner-operated restaurants. Digital sales accounted for 37.2% of total food and beverage revenue.
Food, beverage and packaging costs represented 30.2% of total revenue, slightly lower year-over-year, while labor costs increased to 25.5% of revenue due to wage inflation and lower sales volumes.
Chipotle repurchased $741.6 million of stock during the quarter at an average price of $34.14 per share. As of Dec. 31, 2025, $1.7 billion remained available under the company's share repurchase authorization.
CEO Scott Boatwright said the company is launching its "Recipe for Growth" strategy, focused on accelerating transactions and improving accuracy, efficiency and speed while continuing to expand its restaurant footprint.
Analysts React To The Print
Chipotle carries a consensus rating of Buy and a consensus price target of $48.87. Following Chipotle’s earnings, multiple analysts lowered price targets.
- Piper Sandler analyst Brian Mullan maintained an Overweight rating on Chipotle and lowered the price target from $47 to $44.
- Wells Fargo analyst Zachary Fadem maintained a Overweight rating on Chipotle and lowered the price target from $50 to $45.
- Keybanc analyst Eric Gonzalez maintained an Overweight rating on Chipotle and lowered the price target from $45 to $42.
- Stifel analyst Chris O’Cull maintained a Buy rating on Chipotle and lowered the price target from $50 to $45.
- Telsey Advisory Group analyst Sarang Vora maintained an Outperform rating on Chipotle and lowered the price target from $50 to $48.
Chipotle Shares Trade Approximately Flat
CMG Price Action: At the time of writing, Chipotle shares are trading 0.64% lower at $38.92, according to data from Benzinga Pro.
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