Chipotle (CMG) reported third quarter earnings on Wednesday after market close that were better than the Street expected as the restaurant chain sustained sales momentum following slower sales growth since the first quarter of 2025.

Chipotle posted a 2.1% gain in same-store sales, higher than the 1.5% gain Wall Street expected. It posted adjusted earnings of $0.27 per share, slightly below the expected $0.29 per share.

"We saw stable or improving wallet share across the quarter, with broad strength across income and age cohorts," CEO Scott Boatwright told investors on its earnings call.

The stock rose roughly 7% in after-hours trading. Year to date, shares are down 20%.

Operating margin came in at 13.7%, a decrease from 15.9%. Analysts expected it to be weaker due to various marketing efforts, including a buy-one-get-one deal during the back-to-school season, free double protein portions during the last week of August, and the launch of two limited-time offerings: Pollo Asado and Chili Lime Chips.

Telsey Advisory Group analyst Sarang Vora noted before the results were released that "continued uncertain macro trends, especially related to inflation and higher fuel prices, should cause some pressure on lower income households."

On the earnings call, Boatwright said that wasn't the case.

"We saw lower income cohorts outperform higher income cohorts for the first time this year, with the greatest strength in September, when promotional activity was at its lowest," he added.

Consumer sentiment fell in October as frustration over the higher cost of living weighed on Americans' views of the economy, according to a survey from the University of Michigan. The national average gas price also rose above $4.50 per gallon during the quarter, according to AAA.

CFO Adam Rymer said to offset inflation, Chipotle did raise prices by 2.7% in the third quarter.

Rymer said Chipotle will keep using price to offset inflation but will do so in a "measured, patient way," with plans to eat the cost for "temporary or transitory increases in inflation."

The company also said it's investing in AI-enabled tools to pilot at 500 restaurants early next year that will forecast demand to ensure its food is fresh and add more beverages to the lineup next, like many others in the industry.

The company reiterated its full-year outlook.

Chipotle predicts low-single-digit restaurant sales growth for the year as "October trends have softened, consistent with the broader industry," Rymer said.

It also continues to expect to open 350 to 370 new restaurants in total, with roughly 10 to 15 international partner-operated restaurants.