Chipotle (CMG) Q1 FY26 earnings call: guidance and Q&A

Can you quantify what you're seeing in early April, and what specific QSR experience do you expect Fernando Machado to bring?

Adam cited a nice step-up in April from an earlier Easter, the Cilantro-Lime Sauce launch (incidence ~2x, outperforming Red Chimichurri) and the rewards relaunch. Scott praised Machado's global brand-building track record and affinity for the brand.

“It's actually outperforming Red Chimichurri, which was our most popular sauce up until that point and the incidence is about 2x.”

asked by Danilo Gargiulo · answered by Adam Rymer

What was the cadence of comps through the quarter and the Q2 comp assumption; and is the rewards revamp aimed at new, lapsed, or existing customers?

Adam walked Jan (protein strength, ~100 bps weather drag), Feb (Chicken Al Pastor, highest incidence), March (softening around Iran conflict), April step-up, guiding Q2 to ~+1%. Scott said the relaunch drove ~25% new-member uplift and reactivated lapsed guests while deepening engagement.

“since the relaunch, we've seen about a 25% uplift in new members coming into the funnel.”

asked by Lauren Silberman · answered by Adam Rymer

Is your base case that more frequent LTOs lift the two-year trend each time, implying comps accelerate through the year if the environment holds?

Scott confirmed that is exactly the case, citing the demand-map refresh showing consumers wanted more frequent innovation; the company doubled LTO cadence and will pepper in genuinely new center-of-plate proteins alongside returning favorites to inform 2027.

“That's exactly right, David. ... we have doubled our cadence of LTO innovation and stage gate processing in our culinary center”

asked by David Palmer · answered by Scott Boatwright

What were the traffic and mix components of the comp, and what is the mix outlook?

Adam decomposed the +0.5% comp: transactions +60 bps, check -10 bps (price +90 bps, mix -100 bps). Mix drag reflects lower group size (post-COVID normalization, reward redemptions, BYOC, snack-occasion single items), partly offset by extra-protein and sauce attach. Mix expected closer to flat in Q2 on the Cilantro-Lime Sauce check benefit.

“transactions were up about 60 basis points and check was a slight decline, call it, about 10 basis points. Price was around 90 basis points, and then mix was a drag of about 100 basis points”

asked by Brian Harbour · answered by Adam Rymer

What is the shape of restaurant margins into H2, and is the equipment comp gap widening?

Adam said first-half margins are under the most YoY pressure (price ~0.9% vs ~mid-3% inflation) with dislocation minimal by year-end as beef is lapped; margin expansion thereafter comes from price offsetting inflation plus incremental transactions. Scott reported equipment-driven 200-400 bps comp lift, 600 restaurants today toward 2,000 by year-end at ~30 installs/week rising to ~45.

“hundreds of basis points of comp lift in those restaurants, and that ranges from 200 to 400, depending on the restaurant”

asked by Andrew North · answered by Scott Boatwright

Are the previously pressured lower/middle-income and younger cohorts converging, and where do European unit economics stand?

Scott said targeted, culturally relevant messaging re-engaged younger consumers and drove an uplift across all ages and income cohorts in Q1. On Europe, margins are now double-digit with ~40% year-2 ROI, prompting a more aggressive real-estate search in Central London and Germany.

“we're now in the double-digit range on margin, and we're seeing ... 40% return on investment in year 2 ... on the new restaurants we're opening”

asked by Sara Senatore · answered by Scott Boatwright

Should marketing flex to local competitive dynamics, and were new-unit volumes light in Q1?

Scott said a deep dive in New York and Florida showed early cannibalization when competitors open near a Chipotle that recovers by months 6-8 and can buoy the trade area; national marketing spend works hardest and local bifurcation would be inefficient. Adam said new-store productivity remains ~80% of comp restaurants, with any optical softness reflecting opening cadence within the quarter.

“we're still kind of in that 80% of our comp restaurants in terms of where they're opening at.”

asked by John Ivankoe · answered by Adam Rymer

Does the Q2 +1% comp imply a ~50 bps traffic decline, and what drove the 2025 hourly-turnover increase?

Adam agreed the read is right, attributing it to a deliberately modest/cautious outlook on Chipotle Honey Chicken and other initiatives given the consumer environment (Iran conflict, gas prices), while flagging upside. Scott called the 2025 hourly-turnover rise an anomaly from decelerating sales and fewer hours plus a hospitality-driven staffing reset, noting Q1 returned to historically low turnover.

“we're going to remain cautious on that outlook, but we believe that there's upside from there.”

asked by Andrew Charles · answered by Adam Rymer