Chipotle Mexican Grill reported a fiscal third-quarter net income of $339.9 million, translating to 27 cents per share, which is a decrease from $382.1 million or 29 cents per share a year earlier. The company's restaurant-level operating margin decreased from 24.5% to 23.3%, reflecting pressures on profitability.
Revenue matched expectations at $3.29 billion, driven by a 9.6% increase in net sales, attributed to the opening of 84 new company-owned restaurants and five international locations. However, the company faced challenges in July when sales began to decline due to consumer concerns over raw lettuce linked to cyclospora, despite Chipotle's supply not being implicated in any outbreak.
Additionally, in August, the chain temporarily removed jalapenos from its Minnesota locations due to a potential salmonella link. Despite these setbacks, Chipotle achieved a 2.1% increase in same-store sales, supported by a 1.3% rise in average check.
For the full year, the company maintains its forecast of low single-digit growth in same-store sales and plans to open between 340 and 360 new locations in the U.S. and Canada by 2027, along with 15 to 25 international restaurants