By Evie Liu

Chipotle Mexican Grill posted second-quarter revenue and earnings Wednesday that edged past Wall Street estimates, and it raised its full-year sales outlook.

The results gave investors confidence that the burrito chain's recovery is gaining traction, although rising beef, freight, and labor costs continued to squeeze profitability. The stock jumped nearly 8% in after-hours trading.

For the quarter ended in June, Chipotle revenue increased 9.3% from a year earlier to $3.35 billion, slightly above analysts' consensus estimate of about $3.33 billion. Adjusted earnings were 33 cents a share, one cent ahead of expectations and unchanged from the year-ago period.

Comparable-restaurant sales rose 2.2%, accelerating from 0.5% in the first quarter -- driven by an 1% rise in transactions and a 1.2% gain in the average check. That means Chipotle generated growth from both customer visits and spending rather than relying entirely on menu-price increases.

Management now expects comparable sales to increase in the low-single-digit range for 2026, up from its previous forecast for roughly flat results. CEO Scott Boatwright credited the company's "Recipe for Growth" strategy, which includes menu innovation, stronger engagement through Chipotle Rewards, improved hospitality, and an effort to capture more group orders.

New restaurants remain another major growth engine. Chipotle opened 100 company-operated locations during the quarter, including 80 with its drive-through Chipotlanes, plus one partner-operated international restaurant. The company maintained its plan to open 350 to 370 restaurants this year, including 10 to 15 international partner-operated locations.

Still, margins came under more pressure. Restaurant-level operating margin fell to 25.2% from 27.4% a year earlier, driven by beef and freight inflation and greater use of protein and produce. Labor costs also rose as Chipotle increased wages, bonuses, and staffing tied to its hospitality initiatives.

The second quarter suggests Chipotle's top-line recovery is becoming more credible. The next test is whether the company can convert that momentum into stronger profits.

Write to Evie Liu at evie.liu@barrons.com

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July 29, 2026 17:07 ET (21:07 GMT)