Chipotle Mexican Grill (CMG) Financials

Chipotle Mexican Grill entered 2026 with a very strong balance sheet, but the latest quarter also showed some margin pressure and heavier use of cash for buybacks. Revenue and profits are still growing, and the company continues to generate substantial operating cash flow. At the same time, leverage-like liabilities remain large and share repurchases are consuming a meaningful amount of cash.

• Revenue growth remains solid. Q1 2026 revenue rose to $3.09 billion from $2.98 billion in Q4 2025 and $2.88 billion in Q1 2025, showing the business is still expanding.
• Profitability is still strong. Q1 2026 net income attributable to common shareholders was $302.1 million, up from $387.0 million in Q1 2025, but still at a healthy level for a single quarter.
• Operating cash flow is robust. CMG generated $651.4 million in operating cash flow in Q1 2026, up from $425.8 million in Q4 2025 and $557.1 million in Q1 2025.
• The company has significant liquidity. As of Q1 2026, Chipotle held $246.6 million in cash and equivalents plus $624.8 million in short-term investments.
• Equity has improved over the past year. Total common equity increased to $2.41 billion in Q1 2026 from $2.25 billion in Q1 2026 and $2.41 billion was supported by retained earnings growth over time.
• Gross profit remains healthy. Q1 2026 gross profit was $719.0 million, indicating the company still has strong unit economics despite rising costs.
• Cash generation continues to fund growth capex. Q1 2026 capital spending on property and equipment was $180.3 million, which suggests the company is still investing in its restaurant base and infrastructure.
• Margins were mixed in the latest quarter. Q1 2026 operating margin was about 12.9% ($397.1 million operating income on $3.09 billion revenue), which is decent but lower than some prior periods in the dataset.
• Long-term investments swung lower from Q3 2025 levels. Long-term investments fell to $96.4 million in Q1 2026 from $347.7 million in Q3 2025, reflecting portfolio reallocation rather than an operating issue.
• Tax-related liabilities remain meaningful. Chipotle continues to carry sizable deferred tax and other noncurrent operating liabilities, which are important to monitor but are normal for a company at this scale.
• Share count remains elevated. Diluted weighted average shares were about 1.30 billion in Q1 2026, so EPS growth still depends partly on repurchases.
• Share buybacks are consuming a lot of cash. Chipotle spent $701.0 million repurchasing common equity in Q1 2026, after $741.8 million in Q4 2025 and $686.7 million in Q3 2025.
• Total liabilities are large relative to equity. Q1 2026 liabilities were $6.40 billion versus $2.41 billion of equity, so the balance sheet is not debt-heavy in a traditional sense but still shows substantial obligations.
• Current liabilities now exceed current assets. Q1 2026 current liabilities were $1.24 billion versus $1.14 billion in current assets, which suggests near-term obligations are a bit higher than immediately liquid resources.
• Cash declined sharply during the quarter. Cash and equivalents fell from $698.7 million in Q3 2025 to $246.6 million in Q1 2026, although the company still has a large investment cushion.
• Operating leverage has become less predictable. Over the last several quarters, SG&A, special charges, impairments, and depreciation have fluctuated, which can create some volatility in margin performance.

Bottom line: Chipotle remains a fundamentally strong, cash-generating growth company with excellent revenue momentum and a healthy profit base. The main items to watch are the sustainability of margins, the pace of buybacks, and whether liabilities continue to outpace liquid assets on the short end of the balance sheet.