What Garmin, eBay, and Chipotle Earnings Reveal About the Changing American Consumer

Americans will still shell out hundreds for a fitness watch, hunt for bargains online, and think twice about another restaurant bill. Third-quarter earnings from GarminGRMN, eBayEBAY, and ChipotleCMG on Oct. 28 showed just how uneven consumer spending has become. Premium gadgets and secondhand goods are finding buyers, while restaurants face slower growth and tighter margins.

Where spending stands

Garmin reported record revenue of $1.99B, up 12% year over year, while operating income climbed 34%. eBay's gross merchandise volume, or the value of goods sold through its marketplaces, rose 15% to $23.2B. U.S. volume grew even faster, jumping 27%.

Chipotle recorded same-store sales growth of 2.1%, helped by a 1.3% increase in average spending per order.

The results show consumers are still opening their wallets, although some businesses are having a much easier time winning their spending than others.

Garmin's premium advantage

Expensive fitness watches aren't having much trouble finding buyers. Garmin's fitness revenue rose 16% to $694M, while outdoor sales climbed 20% to $597M, helped by adventure watches and the fenix 9 launch.

Marine and aviation also grew, although its automotive equipment business struggled with weaker demand.

Profitability improved alongside sales. Gross margin reached 63.3%, up from 59.1% a year earlier, partly thanks to $33M in tariff refunds.

Management raised its full-year revenue outlook to $8.15B and projected adjusted earnings of $10.80 per share.

But higher component costs could spoil some of that progress. CEO Cliff Pemble warned that memory chip prices are rising, while recent margins benefited from cheaper inventory purchased earlier.

Garmin expects margins to return closer to historical levels heading into 2027. Demand remains strong, but keeping profits growing at the same pace may prove harder.

Secondhand shopping gains ground

eBay is benefiting from shoppers looking for better deals without giving up purchases altogether. Its Recommerce Report found that 47% of surveyed consumers now buy secondhand goods at least once a month, up from 35% in 2025.

Revenue rose 14% to $3.2B, while adjusted earnings increased 12% to $1.51 per share. Collectibles also performed well, with trading card sales on TCGplayer surpassing $1B over the past year.

However, buyer growth deserves a closer look. Active buyers increased 10% to 147M, but excluding newly acquired Depop and Tise, growth was just 1%.

eBay paid $1.4B for Depop and expects fourth-quarter merchandise volume of $23.7B to $24.1B. Resale is attracting more shoppers, but eBay still needs to prove it can grow its existing business without relying on acquisitions.

Restaurants absorb the pressure

Chipotle is finding that selling more burritos doesn't necessarily mean keeping more profit.

Net sales rose 9.6% to $3.29B, driven largely by new restaurant openings rather than stronger sales at existing locations. The company opened 84 company-owned restaurants during the quarter. Meanwhile, restaurant-level operating margin fell to 23.3% from 24.5% a year earlier, while net income declined to $339.9M.

Adjusted earnings of 27 cents per share missed the 29-cent forecast. Sales also softened during a July cyclospora scare involving raw lettuce, although Chipotle's supply was never linked to the outbreak.

Management maintained its outlook for low-single-digit same-store sales growth, leaving new locations responsible for much of its expansion.

What investors should watch

Garmin has the strongest combination of sales growth and improving profitability, although rising component costs threaten its margins.

eBay benefits from growing interest in secondhand goods, but weak organic buyer growth raises questions about how much momentum comes from acquisitions.

Chipotle faces the toughest challenge, with modest same-store sales growth and shrinking margins making expansion more important.

The three reports suggest consumers haven't stopped spending. They're paying up for products they value, looking for savings elsewhere, and giving restaurants less room to raise prices without hurting demand.