Why did Chipotle raise its annual sales forecast despite the cyclospora outbreak?

Chipotle raised its fiscal 2026 comparable restaurant sales forecast to the low single-digit range (from a prior expectation of about flat) because it beat second-quarter estimates—posting 2.2% comparable sales growth (vs. 1.32% analyst estimate) and adjusted earnings of $0.33 per share (vs. $0.32 estimate)—driven by successful value deals, limited-time offerings like honey chicken and cilantro lime sauce, and the return of Chicken Al Pastor, which supported positive traffic and average check growth even amid consumer caution.

How is Chipotle affected by the cyclospora outbreak, and what is its stance on lettuce sourcing?

Chipotle reported a ~2% softening in sales during the second half of July due to the outbreak, calling Q3 likely its toughest quarter of the year; however, it emphasized it does not serve shredded iceberg lettuce—the item linked to the outbreak—and confirmed its romaine lettuce and Supergreens salad mix were not sourced from central Mexico (the outbreak’s origin), but rather from California, leading CFO Adam Rymer to characterize the traffic impact as 'modest' relative to competitors more reliant on lettuce-heavy menus.

Chipotle Raises Forecast Despite Cyclospora Parasite Scare Impact

Jul 29, 2026

Chipotle raised its annual sales forecast despite a cyclosporiasis outbreak linked to iceberg lettuce affecting Q3 traffic. The company noted surging input costs for beef, which hit record highs, and packaging impacted margins.

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Chipotle Raises Forecast Despite Cyclospora Parasite Scare Impact

FAQ