Can Increasing the Number of Locations Help Boost Chipotle's Total Sales in 2026?

Chipotle’s Expansion Plans and Restaurant Growth

Chipotle Mexican Grill, Inc. (CMG) is actively pursuing its strategy to increase the number of locations, viewing new openings as a significant driver for overall sales. The leadership remains optimistic about reaching a target of around 7,000 restaurants across North America, highlighting the substantial potential for domestic growth. In 2026, Chipotle aims to launch approximately 350 new outlets, following the addition of 334 company-owned sites in 2025. Executives believe this rate of expansion is suitable for growing the brand while preserving strong returns at the individual restaurant level.

A large portion of these new restaurants feature the Chipotlane design, which offers a dedicated lane for digital order pickups. Management has emphasized that Chipotlane-equipped locations outperform traditional restaurants in both sales and profitability. In the last quarter of 2025, 97 out of 132 new openings included Chipotlanes. This innovative format remains a key part of Chipotle’s development strategy, supporting increased digital engagement and efficient operations.

International Strategy and Market Focus

Chipotle continues to pursue international growth with a careful and selective approach. In 2025, the company opened 11 partner-operated restaurants outside North America and finished the year with positive comparable sales in Europe. Management pointed out improved financial performance in markets like Central London and Frankfurt, but reiterated that North America is still the main area of focus for near-term expansion.

Outlook for 2026 and Revenue Expectations

Looking forward, Chipotle’s management expects comparable restaurant sales to remain steady in 2026, reflecting a cautious stance amid uncertain consumer trends. Price increases are projected to be between 1% and 2% for the year. Additional restaurant openings are anticipated to contribute to overall revenue growth. The company’s development plans are guided by the need to maintain robust returns, avoid excessive overlap between locations, and ensure new restaurants perform well compared to existing ones.

Chipotle’s Stock Performance and Industry Comparison

Over the past year, Chipotle’s shares have fallen by 31.7%, while the broader restaurant industry saw a decrease of 4.5%. Other major players, including Starbucks Corporation, Sweetgreen, Inc., and CAVA Group, Inc., experienced declines of 14.6%, 76.6%, and 26.2%, respectively.

CMG One-Year Price Performance

Valuation Metrics and Industry Multiples

Chipotle (CMG) currently trades at a forward price-to-sales ratio of 3.62, which is below the industry average of 3.78. In comparison, Starbucks, Sweetgreen, and CAVA have ratios of 2.80, 0.85, and 5.14, respectively.

CMG’s P/S Ratio (Forward 12-Month) vs. Industry

EPS Trends and Earnings Outlook

The consensus estimate for Chipotle’s earnings per share in 2026 has decreased over the past month.

EPS Trend of CMG Stock

Chipotle is expected to report weaker earnings, with forecasts indicating a 2.6% decline in 2026. In contrast, Sweetgreen and CAVA are projected to see year-over-year earnings increases of 12.7% and 6.7%, respectively, while Starbucks is anticipated to achieve an 8.5% rise in fiscal 2026 earnings.

Currently, CMG stock holds a Zacks Rank #5 (Strong Sell).