Chipotle stock jumps as chain hikes same-store sales forecast, says cyclospora fears hit sales in late July — SkimNews
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- Chipotle Mexican Grill raised its full-year same-store sales forecast to low single digit growth for 2026, upgrading from a prior outlook of flat same-store sales for the year.
- Chipotle beat Wall Street expectations with adjusted EPS of 33 cents (vs. 32 cents expected) and revenue of $3.35 billion (vs. $3.33 billion expected), sending shares up more than 10% in early Thursday trading.
- The cyclospora outbreak had a roughly 2 percentage point drag on sales in the second half of July, a hit Chipotle folded into its guidance; executives stressed the chain's lettuce is California-sourced and not part of the outbreak.
- Same-store sales rose 2.2%, driven by a 1% increase in restaurant traffic and a 1.2% bump in total check size, with revenue climbing 9.3% year-over-year to $3.35 billion.
- CEO Scott Boatwright credited the seasonal Chipotle Honey Chicken, the new cilantro lime sauce, and the Chipotle Rewards program for winning over younger and lower-income diners.
- Chipotle opened 100 new domestic locations plus one international restaurant operated by a partner during the quarter, while second-quarter net income fell to $403.5 million from $436.1 million a year earlier.
Why it matters: Chipotle's upgrade from flat to low single digit same-store sales growth shows management views menu innovation and loyalty engagement as enough to overcome macro pressure on dining budgets and a 2-point cyclospora sales hit in late July — a view the more than 10% stock rally confirms investors share.
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