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Chipotle Mexican Grill Inc

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


2024

Food and beverage revenue

$      5,907,585


99.5 %


$      5,639,361


99.4 %

Delivery service revenue

31,061


0.5


35,605


0.6

Total revenue

5,938,646


100.0


5,674,966


100.0

Restaurant operating costs (exclusive of depreciation
and amortization shown separately below):








Food, beverage and packaging

1,724,392


29.0


1,652,749


29.1

Labor

1,474,487


24.8


1,376,077


24.2

Occupancy

304,091


5.1


274,362


4.8

Other operating costs

843,824


14.2


770,528


13.6

General and administrative expenses

344,934


5.8


379,653


6.7

Depreciation and amortization

178,156


3.0


166,805


2.9

Pre-opening costs

18,820


0.3


16,206


0.3

Impairment, closure costs, and asset disposals

11,635


0.2


11,241


0.2

Total operating expenses

4,900,339


82.5


4,647,621


81.9

Income from operations

1,038,307


17.5


1,027,345


18.1

Interest and other income, net

40,608


0.7


41,225


0.7

Income before income taxes

1,078,915


18.2


1,068,570


18.8

Provision for income taxes

256,189


4.3


253,612


4.5

Net income

$         822,726


13.9 %


$         814,958


14.4 %

Earnings per share:








Basic

$               0.61




$               0.59



Diluted

$               0.61




$               0.59



Weighted-average common shares outstanding:








Basic

1,349,737




1,372,488



Diluted

1,355,478




1,381,347



 

CHIPOTLE MEXICAN GRILL, INC.

CONDENSED CONSOLIDATED  BALANCE SHEETS

(in thousands, except per share data)



June 30,
2025


December 31,
2024


(unaudited)



Assets




Current assets:




Cash and cash equivalents

$         844,524


$         748,537

Accounts receivable, net

105,004


143,963

Inventory

40,402


48,942

Prepaid expenses and other current assets

96,506


97,538

Income tax receivable

80,721


67,229

Investments

701,968


674,378

Total current assets

1,869,125


1,780,587

Leasehold improvements, property and equipment, net

2,503,429


2,390,126

Long-term investments

518,680


868,025

Restricted cash

30,704


29,842

Operating lease assets

4,203,989


4,000,127

Other assets

120,928


113,728

Goodwill

21,939


21,939

Total assets

$      9,268,794


$      9,204,374

Liabilities and shareholders' equity




Current liabilities:




Accounts payable

$         216,347


$         210,695

Accrued payroll and benefits

236,947


261,913

Accrued liabilities

185,090


179,747

Unearned revenue

206,635


238,577

Current operating lease liabilities

287,252


277,836

Total current liabilities

1,132,271


1,168,768

Long-term operating lease liabilities

4,493,334


4,262,782

Deferred income tax liabilities

36,297


46,208

Other liabilities

78,697


71,070

Total liabilities

5,740,599


5,548,828

Shareholders' equity:




Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of
June 30, 2025 and December 31, 2024, respectively

-


-

Common stock, $0.01 par value, 11,500,000 shares authorized, 1,341,425 and
1,358,751 shares issued as of June 30, 2025 and December 31, 2024, respectively

13,414


13,586

Additional paid-in capital

2,157,080


2,078,010

Accumulated other comprehensive loss

(7,341)


(10,282)

Retained earnings

1,365,042


1,574,232

Total shareholders' equity

3,528,195


3,655,546

Total liabilities and shareholders' equity

$      9,268,794


$      9,204,374

 

CHIPOTLE MEXICAN GRILL, INC.

CONDENSED CONSOLIDATED  STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)



Six months ended
June 30,


2025


2024

Operating activities




Net income

$         822,726


$         814,958

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

178,156


166,805

Deferred income tax provision

(9,890)


(5,826)

Impairment, closure costs, and asset disposals

11,056


9,917

Provision for credit losses

(1,247)


(155)

Stock-based compensation expense

75,150


81,243

Other

7,622


4,511

Changes in operating assets and liabilities:




Accounts receivable

39,946


18,331

Inventory

8,493


3,763

Prepaid expenses and other current assets

(3,606)


20,348

Operating lease assets

150,957


135,881

Other assets

(362)


1,769

Accounts payable

12,360


7,802

Accrued payroll and benefits

(24,689)


(4,438)

Accrued liabilities

2,126


17,056

Unearned revenue

(25,555)


(22,260)

Income tax payable/receivable

(13,433)


(18,565)

Operating lease liabilities

(113,450)


(101,348)

Other long-term liabilities

2,042


2,020

Net cash provided by operating activities

1,118,402


1,131,812

Investing activities




Purchases of leasehold improvements, property and equipment

(305,395)


(273,193)

Purchases of investments

(6,500)


(738,434)

Maturities of investments

319,962


374,373

Net cash provided by/(used in) investing activities

8,067


(637,254)

Financing activities




Repurchase of common stock

(997,055)


(172,368)

Tax withholding on stock-based compensation awards

(33,319)


(73,011)

Other financing activities

1,540


(29)

Net cash used in financing activities

(1,028,834)


(245,408)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(786)


(1,121)

Net change in cash, cash equivalents, and restricted cash

96,849


248,029

Cash, cash equivalents, and restricted cash at beginning of period

778,379


586,163

Cash, cash equivalents, and restricted cash at end of period

$         875,228


$         834,192

Supplemental disclosures of cash flow information




Income taxes paid

$         279,327


$         277,427

Purchases of leasehold improvements, property and equipment accrued in accounts
payable and accrued liabilities

$           75,585


$           76,304

Repurchase of common stock accrued in accounts payable and accrued liabilities

$             9,016


$             9,803

 

CHIPOTLE MEXICAN GRILL, INC.

SUPPLEMENTAL FINANCIAL AND OTHER DATA

(dollars in thousands)

(unaudited)



For the three months ended


Jun. 30,
2025


Mar. 31,
2025


Dec. 31,
2024


Sep. 30,
2024


Jun. 30,
2024

Company-owned restaurants opened

61


57


119


86


52

Chipotle permanent closures

(2)


(2)


(2)


(1)


(1)

Chipotle relocations

(1)


-


(6)


-


-

Company-owned restaurants at end
of period

3,839


3,781


3,726


3,615


3,530

Average restaurant sales

$             3,142


$             3,186


$             3,213


$             3,184


$          3,146

Comparable restaurant sales
increase/(decrease)

(4.0 %)


(0.4 %)


5.4 %


6.0 %


11.1 %




For the three months ended


Jun. 30,
2025


Mar. 31,
2025


Dec. 31,
2024


Sep. 30,
2024


Jun. 30,
2024

Licensed restaurants opened

-


2


1


1


1

Licensed restaurants at end of period

5


5


3


2


1

 

CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Below are definitions of the non-GAAP financial measures in this release. The following tables provide a reconciliation of non-GAAP financial measures presented in this release to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Adjusted net income is net income excluding lease remeasurement gains, expenses related to certain legal proceedings, stock-based compensation retention grants, and loss on investments. Adjusted general and administrative expense is general and administrative expense excluding expenses related to certain legal proceedings and stock-based compensation retention grants. The adjusted effective income tax rate is the effective income tax rate adjusted to reflect the after tax impact of non-GAAP adjustments. Restaurant level operating margin is equal to the revenues generated by our restaurants less their direct operating costs which consist of food, beverage and packaging, labor, occupancy and other operating costs. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other costs that are essential to conduct our business. Management uses restaurant level operating margin as a measure of restaurant performance. Management believes restaurant level operating margin is useful to investors in that it highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. We present these non-GAAP measures in order to facilitate meaningful evaluation of our operating performance across periods. These adjustments are intended to provide greater transparency of underlying performance and to allow investors to evaluate our business on the same basis as our management, which uses these non-GAAP measures in evaluating the company's performance. Our adjusted net income, adjusted diluted earnings per share, adjusted general and administrative expenses, adjusted effective income tax rate and restaurant level operating margin measures may not be comparable to other companies' adjusted measures. These adjustments are not necessarily indicative of what our actual financial performance would have been during the periods presented and should be viewed in addition to, and not as an alternative to, our results prepared in accordance with GAAP. Further details regarding these adjustments are included in the tables below.

CHIPOTLE MEXICAN GRILL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


Adjusted Net Income and Adjusted Diluted Earnings per Share

(in thousands, except per share amounts)

(unaudited)



Three months ended
June 30,


2025


2024

Net income

$         436,127


$         455,671

Non-GAAP adjustments:




Impairment and exit costs:




Corporate asset impairment and other corporate (gains)/costs(1)

(1,484)


-

Legal proceedings(2)

-


3,775

Stock-based compensation retention grants(3)

12,213


-

Investment unrealized loss(4)

6,168


6,016

Total non-GAAP adjustments

16,897


9,791

Tax effect of non-GAAP adjustments above(5)

(2,619)


(2,471)

After tax impact of non-GAAP adjustments

14,278


7,320

Adjusted net income

$         450,405


$         462,991





Diluted weighted-average number of common shares outstanding

1,350,236


1,381,518

Diluted earnings per share

$               0.32


$               0.33

Adjusted diluted earnings per share

$               0.33


$               0.34



(1)

Lease remeasurement gain for vacated office space.

(2)

Charges for estimated settlements for distinct legal matters that exceeded or are expected to exceed typical costs for these types of legal proceedings.

(3)

Stock-based compensation expense for retention equity awards granted to key executives in connection with the CEO transition.

(4)

Charges for an unrealized loss in a long-term investment.

(5)

Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.

 

CHIPOTLE MEXICAN GRILL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


Adjusted General and Administrative Expenses

(in thousands)

(unaudited)



Three months ended
June 30,


2025


2024

General and administrative expenses

$         172,151


$         175,028

Non-GAAP adjustments:




Legal proceedings(1)

-


(3,775)

Stock-based compensation retention grants(2)

(12,213)


-

Total non-GAAP adjustments

(12,213)


(3,775)

Adjusted general and administrative expenses

$         159,938


$         171,253



(1)

Charges for estimated settlements for distinct legal matters that exceeded or are expected to exceed typical costs for these types of legal proceedings.

(2)

Stock-based compensation expense for retention equity awards granted to key executives in connection with the CEO transition.

 

CHIPOTLE MEXICAN GRILL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


Adjusted Effective Income Tax Rate

(unaudited)



Three months ended
June 30,


2025


2024

Effective income tax rate

24.5 %


25.0 %

Tax impact of non-GAAP adjustments(1)

(0.3)


-

Adjusted effective income tax rate

24.2 %


25.0 %



(1)

Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.

 

CHIPOTLE MEXICAN GRILL, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


Restaurant Level Operating Margin

(in thousands)

(unaudited)



Three months ended June 30,


2025


Percent of
total revenue


2024


Percent of
total revenue

Income from operations

$         559,057


18.2 %


$         586,053


19.7 %

Non-GAAP Adjustments








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 non-GAAP Adjustments

279,173


9.1


273,347


9.2

Restaurant level operating margin

$         838,230


27.4 %


$         859,400


28.9 %

 

 

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SOURCE Chipotle Mexican Grill