CHIPOTLE ANNOUNCES SECOND QUARTER 2025 RESULTS
HIGHLIGHTS RETURN TO POSITIVE COMPARABLE SALES AND TRANSACTIONS IN JUNE
NEWPORT BEACH, Calif., July 23, 2025 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE:CMG) today reported financial results for its second quarter ended June 30, 2025.
Second quarter highlights, year over year:
Total revenue increased 3.0% to $3.1 billion
Comparable restaurant sales decreased 4.0%
Operating margin was 18.2%, a decrease from 19.7%
Restaurant level operating margin1 was 27.4%, a decrease from 28.9%
Diluted earnings per share was $0.32, a 3.0% decrease from $0.33
Adjusted diluted earnings per share1 was $0.33, a 2.9% decrease from $0.34
Opened 61 company-owned restaurants with 47 locations including a Chipotlane
"We are seeing momentum build as we rolled out our summer marketing initiatives and as our comparisons ease," said Scott Boatwright, Chief Executive Officer, Chipotle. "Our talented restaurant teams remain focused on delivering hand-crafted meals in abundance with the best ingredients, made fresh daily using classic culinary techniques at a value you cannot find anywhere else. I am optimistic that our positive momentum will continue as we further support our world-class people with new tools to improve execution, introduce new menu innovations, amplify our rewards program, and introduce this great brand to more communities around the globe."
Results for the three months ended June 30, 2025:Total revenue in the second quarter of 2025 was $3.1 billion, an increase of 3.0% compared to the second quarter of 2024. The increase in total revenue was driven by new restaurant openings. Comparable restaurant sales decreased 4.0% due to lower transactions of 4.9%, partially offset by a 0.9% increase in average check. Digital sales represented 35.5% of total food and beverage revenue.
During the second quarter we opened 61 company-owned restaurants, of which 47 included a Chipotlane. Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins, and returns.
Food, beverage and packaging costs in the second quarter of 2025 were 28.9% of total revenue, a decrease from 29.4% in the second quarter of 2024. The decrease was primarily due to the benefit of menu price increases in 2024 and from cost of sales efficiencies. This decrease was partially offset by inflation across several ingredient costs, primarily steak and chicken.
Labor costs in the second quarter of 2025 were 24.7% of total revenue, an increase from 24.1% in the second quarter of 2024. The increase was primarily due to lower sales volumes. The benefit from menu price increases in 2024 and efficient management of labor more than offset wage inflation.
General and administrative expenses for the second quarter of 2025 were $172.2 million, compared to $175.0 million in the second quarter of 2024. The decrease was primarily due to lower performance bonuses and stock-based compensation. On a non-GAAP basis, general and administrative expenses1 for the second quarter of 2025 were $159.9 million, compared to $171.3 million in the second quarter of 2024.
The effective income tax rate for the second quarter of 2025 was 24.5%, a decrease from 25.0% in the second quarter of 2024. The decrease was primarily driven by lower non-deductible expenses, partially offset by a reduction in tax benefits related to option exercises and equity vesting.
Net income for the second quarter of 2025 was $436.1 million, or $0.32 per diluted share, compared to $455.7 million, or $0.33 per diluted share in the second quarter of 2024. Adjusted net income1 for the second quarter of 2025 was $450.4 million, or $0.33 per adjusted diluted share, compared to $463.0 million, or $0.34 per adjusted diluted share in the second quarter of 2024.
During the second quarter of 2025 we repurchased $435.9 million of stock at an average price per share of $50.16. As of June 30, 2025, $838.8 million remained available under share repurchase authorizations from our Board of Directors, including an additional $400 million in authorizations approved by our Board of Directors on June 10, 2025. The repurchase authorization may be modified, suspended, or discontinued at any time.
More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the SEC by the end of July 2025.
Outlook
For 2025, management is anticipating the following:
About flat full year comparable restaurant sales
315 to 345 new company-owned restaurant openings with over 80% having a Chipotlane
An estimated underlying effective full year tax rate between 25% and 27% before discrete items
Definitions
The following definitions apply to these terms as used throughout this release:
Comparable restaurant sales, or sales comps, and comparable restaurant transactions, represent the change in period-over-period total revenue or transactions for company-owned restaurants in operation for at least 13 full calendar months.
Average restaurant sales refers to the average trailing 12-month food and beverage revenue for company-owned restaurants in operation for at least 12 full calendar months.
Restaurant level operating margin represents total revenue less direct restaurant operating costs, expressed as a percent of total revenue.
Digital sales represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app or third-party delivery aggregators. Digital sales include revenue deferrals associated with Chipotle Rewards.
Conference Call Details
Chipotle will host a conference call on Wednesday, July 23, 2025, at 4:30 PM Eastern time to discuss second quarter financial results as well as provide a business update for the third quarter 2025.
The conference call can be accessed live over the phone by dialing 1-888-317-6003, or for international callers by dialing 1-412-317-6061, and use code: 5564931. The call will be webcast live from the company's website on the investor relations page at ir.chipotle.com/events. An archived webcast will be available approximately one hour after the end of the call.
About Chipotle
Chipotle Mexican Grill, Inc. (NYSE:CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 3,800 restaurants as of June 30, 2025, in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. With over 130,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.
Forward-Looking Statements
Certain statements in this press release and in the July 23, 2025, conference call are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under "Outlook" about our anticipated full year 2025 comparable restaurant sales growth, number of new restaurant openings in 2025, and estimated underlying effective 2025 full year tax rate, as well as statements about our goal to have 7,000 restaurants in the U.S and Canada and expand internationally, expected number of restaurants with Chipotlanes, our future food, beverage, packaging, labor, general and administrative and other costs, future estimated tax rates and future long-term prospects. We use words such as "anticipate", "believe", "could", "should", "may", "approximately", "estimate", "assuming", "expect", "intend", "project", "target", "goal" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on currently available operating, financial and competitive information available to us as of the date of this release and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to: increasing wage inflation including as a result of government regulations mandating higher minimum wages, and the competitive labor market, which impacts our ability to attract and retain qualified employees and has resulted in occasional staffing shortages; the impact of any union organizing efforts and our responses to such efforts; increases in food, beverage, packaging and other operating costs and the inability of our third-party suppliers and business partners to fulfill their commitments due to inflation, global conflicts, climate change, our Food with Integrity philosophy, tariffs or trade restrictions and supply shortages; risks of food safety incidents and food-borne illnesses; risks associated with our reliance on certain information technology systems operated by us or by third parties and potential failures, outages or interruptions; privacy and cybersecurity risks, including risk of breaches, unauthorized access, theft, modification, destruction or ransom of guest or employee personal or confidential information stored on our network or the network of third-party providers; the impact of competition, including from sources outside the restaurant industry; the impact of government regulations relating to our employees, employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites and the equipment and technology needed to fully outfit new restaurants, construction materials and contractors and the expected costs to accelerate our international expansion through licensed restaurants in the Middle East; the uncertainty of our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in guests' perceptions of our brand, including as a result of actual or rumored food safety concerns or other negative publicity, decreased overall consumer spending, including as a result of high inflation, mass layoffs, fears of possible recession and higher energy costs, or the inability to increase menu prices or realize the benefits of menu price increases; risks associated with our reliance on third party delivery services; and risks relating to litigation, including possible governmental actions and potential class action litigation related to food safety incidents, cybersecurity incidents, employment or privacy laws, advertising claims, contract disputes or other matters; and other risk factors described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com.
1
Restaurant level operating margin, adjusted diluted earnings per share, adjusted net income, non-GAAP general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three months ended June 30,
2025
2024
Food and beverage revenue
$ 3,047,754
99.5 %
$ 2,954,913
99.4 %
Delivery service revenue
15,639
0.5
18,204
0.6
Total revenue
3,063,393
100.0
2,973,117
100.0
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Food, beverage and packaging
885,989
28.9
873,673
29.4
Labor
756,261
24.7
716,627
24.1
Occupancy
154,250
5.0
138,663
4.7
Other operating costs
428,663
14.0
384,754
12.9
General and administrative expenses
172,151
5.6
175,028
5.9
Depreciation and amortization
90,945
3.0
83,562
2.8
Pre-opening costs
10,610
0.3
8,995
0.3
Impairment, closure costs, and asset disposals
5,467
0.2
5,762
0.2
Total operating expenses
2,504,336
81.8
2,387,064
80.3
Income from operations
559,057
18.2
586,053
19.7
Interest and other income, net
18,355
0.6
21,861
0.7
Income before income taxes
577,412
18.8
607,914
20.4
Provision for income taxes
141,285
4.6
152,243
5.1
Net income
$ 436,127
14.2 %
$ 455,671
15.3 %
Earnings per share:
Basic
$ 0.32
$ 0.33
Diluted
$ 0.32
$ 0.33
Weighted-average common shares outstanding:
Basic
1,344,955
1,372,800
Diluted
1,350,236
1,381,518
CHIPOTLE MEXICAN GRILL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Six months ended June 30,
2025
