Chipotle raises annual sales forecast as new menu items, value deals drive demand

By Anuja Bharat Mistry

July ‌29 (Reuters) - Chipotle ​Mexican ​Grill raised annual sales forecast and beat second-quarter estimates on Wednesday, as its push to roll out ‌value deals and refresh its menu helped win back ⁠diners in a challenging spending environment.

The Newport Beach, California-based burrito chain also ‌announced a new $1.3 billion ‌share repurchase plan approved by its board on June 11. Its shares were up about 3% in extended trading.

Chipotle is ​seeing rising demand for its burrito bowls and salads as health-conscious consumers gravitate toward protein-rich, less-processed meals.

It has further ⁠fueled traffic with limited-time offerings such as honey chicken and cilantro lime sauce, ​along with the return of customer-favorite Chicken Al Pastor.

"Positive traffic and average check growth reflect a healthy ​print for Chipotle, particularly as wallet-stretch ‌consumers remain overly selective when dining out," said Ari Felhandler, analyst with Morningstar.

The burrito chain expects ⁠fiscal 2026 comparable restaurant sales growth to be in the low single-digit range, compared with its prior forecast of about flat.

Quarterly comparable ⁠restaurant sales were up 2.2%, while analysts estimated a 1.32% rise, according ​to data compiled by LSEG.

While wary of pushing through aggressive price hikes in a weak consumer environment, Chipotle has leaned on modest menu price ‌increases and sales growth to counter mounting costs, including for packaging and beef — which hit ‌a record-high in May and remains the company's largest commodity expense.

Chipotle ⁠posted an adjusted profit ‌of 33 cents per ​share, ahead of analysts' estimate of 32 cents.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Shilpi ‌Majumdar)

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