Chipotle Mexican Grill Inc (NYSE:CMG) stock fell 0.69% (As on February 4, 11:32:18 AM UTC-4, Source: Google Finance) after the company beat quarterly profit and revenue estimates but forecast flat comparable sales for 2026, undershooting Wall Street expectations. Though revenue growth exceeded expectations on continued at a time when diners have increasingly pulled back on eating out amid economic uncertainty. During the fourth quarter the company opened 132 company-owned restaurants, of which 97 included a Chipotlane, and seven international partner-operated restaurants. Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns. Food, beverage and packaging costs in the fourth quarter of 2025 were 30.2% of total revenue, a decrease from 30.4% in the fourth quarter of 2024. The decrease was primarily due to the benefit of menu price increases, lower dairy costs, and cost of sales efficiencies. These decreases were partially offset by inflation, primarily in beef and chicken, and the impact from tariffs enacted in 2025. Labor costs in the fourth quarter of 2025 were 25.5% of total revenue, an increase from 25.2% in the fourth quarter of 2024. Adjusted net income for the fourth quarter of 2025 was $331.3 million compared to $340.0 million in the fourth quarter of 2024.

CMG in the fourth quarter of FY25 has reported the adjusted earnings per share of 25 cents, beating the analysts’ estimates for the adjusted earnings per share of 24 cents. The company had reported the adjusted revenue growth of 4.9 percent to $3 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $2.96 billion. Comparable restaurant sales during the quarter declined 2.5%, better than the consensus estimate of 3%. The increase in total revenue was driven by new restaurant openings and gift card breakage revenue of $27.0 million, which represented a $19.1 million increase compared to the fourth quarter of 2024. Gift card breakage revenue does not impact comparable restaurant sales. Digital sales represented 37.2% of total food and beverage revenue.

Chipotle said it expects full-year comparable sales in 2026 to be about flat, compared with Street’s expectations for roughly 1.9% growth, as consumers remain cautious on discretionary spending. Management said Chipotle plans to open between 350 and 370 new restaurants in 2026, including 10 to 15 international partner-operated locations. About 80% of company-owned restaurants are expected to feature a Chipotlane, the company’s drive-through format aimed at supporting digital and pickup orders. The company also guided to an underlying effective tax rate of 24% to 26% for the full year, before discrete items.