CMG Filings — Chipotle Mexican Grill, Inc. - FilingSpy
CMG
Chipotle Mexican Grill, Inc.
A fast-casual restaurant chain serving made-to-order burritos, bowls, tacos, and salads built on its "Food with Integrity" promise of responsibly raised meats and fresh ingredients. Chef Steve Ells opened the first Chipotle in Denver in 1993, inspired by the burrito taquerías of San Francisco's Mission District, intending it as a "cash cow" to fund a fine-dining dream. The name comes from the Nahuatl word for a smoke-dried jalapeño pepper.
Q2 2026 revenue rose 9.3% to $3.3B but diluted EPS held flat at $0.32 as cost inflation and higher G&A offset gains
turned positive after a year of declines. rose 9.3% to $3,348.6M and was 15.7%, but was flat at $0.32 as beef, freight, and labor inflation plus higher G&A erased the benefit. The business is growing on new units while same-store demand has only just stabilized.
Key takeaways
rose 2.2% (1.2% average check, 1.0% transactions), the first positive quarter after Q1's 0.5% gain followed four quarters of negative or near-flat results ending 2025 at -1.7%.
rose 9.3% to $3,348.6M and 8.4% sequentially, driven by new unit openings and the 2.2% comp gain.
was $0.32, unchanged , as fell 7.5% to $403.5M and fell 6.0% to $525.6M despite higher .
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 9.3% to $3.3B on 2.2% comp sales growth, but EPS was flat at $0.32 as cost inflation and higher G&A offset gains.
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Total grew 9.3% to $3.3B, driven by a 2.2% increase (1.2% , 1.0% transactions) and new unit openings.
Food, beverage, and packaging costs rose 0.8% of to 29.7%, primarily from beef and freight inflation partially offset by lower avocado and dairy costs.
Labor costs increased 0.3% of to 25.0% from wage inflation and performance bonuses, and other operating costs rose 0.9% to 14.9% on marketing, insurance, and utilities inflation.
General and administrative expenses increased 10.6% to $190.5M, largely from higher performance bonuses and legal contingencies.
was $680.7M for the quarter, up 21.3% ; cash and equivalents fell 73.9% to $228.2M from a year ago.
What changed
Q2 2026 of +2.2% reversed the trend flagged after Q1's +0.5% and 2025's -1.7% full-year decline, settling the watch item on whether comps would stay about flat.
Restaurant labor cost ratio was 25.0% in Q2, down from the 26.1% Q1 peak that had risen on wage inflation and legal proceeding costs, partially answering the Q1-flagged labor watch.
Cash and equivalents ended at $228.2M, down from $246.6M in Q1 and $875.2M a year earlier, continuing the decline flagged in Q1 against the $1.0B authorization still partly unspent.
Digital sales mix was not disclosed in this filing, extending the absence flagged across 2024 and 2025 even after FY2025 showed a rise to 36.7%.
New restaurant openings were not quantified in this filing against the 350-370 guided 2026 range, leaving the pace watch item open from Q1.
What to watch
Q3 2026 against the +2.2% Q2 result as management guides full-year about flat
Restaurant labor cost ratio in Q3 after it fell to 25.0% from 26.1% in Q1
Disclosure of Q2 restaurant opening count and pace against the 350-370 full-year 2026 guided range
Cash and equivalents balance after falling to $228.2M and whether the $1.7B remaining authorization is used
Food, beverage, and packaging costs rose 0.8% of to 29.7%, primarily due to beef and freight inflation, partially offset by lower avocado and dairy costs.
Labor costs increased 0.3% of to 25.0%, driven by wage inflation and performance bonuses, partially offset by menu price .
Other operating costs rose 0.9% of to 14.9%, mainly from higher marketing spend and inflation in insurance, maintenance, and utilities.
General and administrative expenses increased 10.6% to $190.5M, largely due to higher performance bonuses and legal contingencies.
was $1.3B for the first half; the company repurchased $357.9M more in stock than the prior year and has $1.7B remaining under authorizations.
Quantitative and Qualitative Disclosures About Market Risk
Commodity costs are the primary market risk; FX risk is not material, and interest-rate risk is limited to investment income.
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Commodity price risk arises from ingredients, packaging, equipment, construction, and utilities, influenced by tariffs, geopolitics, weather, and other external factors.
The company uses forward, fixed, formula, and range-forward pricing protocols with suppliers, typically lasting 1–24 months, and may commit to minimum purchase obligations.
Supplier and geographic diversification is employed to mitigate pricing volatility and supply continuity risks.
Interest-rate risk is confined to interest income on $810.5 million in cash, equivalents, investments, and restricted cash as of June 30, 2026.
Foreign currency risk is deemed not material because a substantial majority of operations and investments are transacted in the U.S.
For information regarding legal proceedings, see Note 11. "Commitments and Contingencies" in our condensed consolidated financial statements included in Item 1. “Financial Statements.” 21 Table of Contents
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For information regarding legal proceedings, see Note 11. "Commitments and Contingencies" in our condensed consolidated financial statements included in Item 1. “Financial Statements.”
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Table of Contents
For a description of risk factors that could impact our business, including risks and uncertainties related to consumer sentiment and changes in discretionary spending; potential increases in the costs of ingredients and restaurant equipment, including due to tariffs, trade sanc…
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For a description of risk factors that could impact our business, including risks and uncertainties related to consumer sentiment and changes in discretionary spending; potential increases in the costs of ingredients and restaurant equipment, including due to tariffs, trade sanctions or taxes; competitor discounting; macroeconomic and geopolitical conditions; and food safety and foodborne illnesses, see Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025.