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Chipotle Mexican Grill raised its full-year comparable sales guidance after beating Q2 estimates on stronger-than-expected traffic and a revamped loyalty program.
Same-store sales rose 2.2% in the second quarter, topping Wall Street's forecast and lapping a 4% decline in the same period last year.
Revenue climbed 9.3% to $3.35B while Adjusted earnings per share came in at $0.33, a penny ahead of estimates.
The company now expects full-year comparable sales growth in the low-single-digit range, up from a prior forecast of flat growth.
The reintroduced honey chicken was the headline driver. The limited-time protein had set records when it first launched in 2025, and its return in Q2 repeated that pull.
Chipotle also rolled out a revamped rewards program featuring challenges and freebies designed to increase visit frequency.
CFO Adam Rymer said gains were broad-based across ages and income levels, but honey chicken and lime sauce were having an outsized impact on Gen Z diners specifically.
"We're speaking to their language, so to speak."
Adam Rymer, CFO, Chipotle Mexican Grill
Digital sales represented 38.3% of food and beverage revenue, up from 35.5% a year earlier.
Chipotle opened 100 new company-owned restaurants in the quarter, with 80 including a Chipotlane drive-through format.
The company plans to open 350 to 370 restaurants in 2026, including 10 to 15 international partner-operated locations.
Restaurant-level operating margin fell to 25.2% from 27.4% a year earlier.Food, beverage, and packaging costs rose to 29.7% of revenue from 28.9%, driven by beef inflation that Rymer described as up a low-double-digit percent with few near-term fixes.
Labor costs also ticked higher as a percentage of revenue, reflecting wage inflation and extra staffing tied to hospitality initiatives.
Chipotle has upgraded kitchen equipment at roughly 1K restaurants, with plans to double that by year-end.
One near-term headwind emerged in early July. An industry-wide Cyclospora outbreak linked to lettuce sourced from Mexico caused a modest dip in foot traffic around July 23, per Placer.ai data.
Chipotle said its supply chain is unaffected and that its romaine and salad mix are sourced from the US, not Mexico.
Chipotle also repurchased $630.7M of stock during the quarter at an average price of $32.55 per share, with $1.7B remaining under current buyback authorizations.
