In brief

• Options traders heavily bought puts in Chipotle before its third-quarter report, with put volume far above call volume.
• Chipotle reported adjusted earnings of 27 cents per share, missing estimates, while revenue matched expectations at $3.29 billion.
• The restaurant-level operating margin declined, and the company kept its full-year same-store sales forecast.

Heavy put buying before the report

Options trading in Chipotle jumped on Tuesday to more than eight times its monthly average volume (Traders are betting big against this restaurant giant into earnings – CNBC). The activity was heavily skewed toward puts, which profit when a stock falls. About 240,000 puts changed hands, compared with fewer than 17,000 calls.

What Wall Street expected

The consensus for the third quarter called for earnings of 29 cents per share and revenue of about $3.28 billion (Chipotle set to report earnings amid fast-casual slowdown – Investing.com). Those projections implied a sequential slide from the second quarter, when the company posted 33 cents per share and $3.35 billion in revenue. At the time, the shares were hovering close to their 52-week low of $27.31.

Results came in mixed

Chipotle reported adjusted earnings of 27 cents per share, below the 29 cents analysts expected. Revenue of $3.29 billion was in line with estimates (Chipotle Mexican Grill is about to report earnings. Here's what to expect – CNBC). Fiscal third-quarter net income reached $339.9 million. Comparable sales rose better than expected, helped by marketing, limited-time menu items and higher prices (Chipotle tops quarterly sales expectations as it continues to attract diners – Investing.com). The company said menu prices were up roughly 2% for 2026 overall.

Margin pressure and outlook

The restaurant-level operating margin shrank during the quarter. For the full year, Chipotle kept its earlier forecast that same-store sales would grow by a low single-digit percentage. Shares rose about 7% in extended trading after the report.

Sector backdrop

The fast-casual segment has been slowing, with traffic growth below 1% expected in 2026. Chipotle has drawn health-conscious and younger diners to protein-rich bowls and salads, but the company warned that broader consumer and industry headwinds may continue.