01—Abstract
Summary
Summary of the 10-K filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Chipotle Mexican Grill, Inc. (CMG) reported its 2025 fiscal year results, highlighting continued revenue growth alongside a slight decrease in comparable restaurant sales.
Total revenue reached $11.9 billiona, an increase of 5.4%, driven by new restaurant openings and a modest increase in average check size, partially offset by a 2.9% decrease in transactions. The company continued its aggressive expansion strategy, opening 334 new restaurants in 2025, with a significant portion featuring Chipotlanes, and plans to open 350-370 new restaurants in 2026. Digital sales remain a key driver, accounting for 36.7% of total food and beverage revenue.
Management anticipates comparable restaurant sales to be "about flat" in 2026, indicating a focus on stabilizing sales trends while pursuing growth. Chipotle also highlighted ongoing investments in technology and its "Recipe for Growth" strategy, emphasizing operational excellence, menu innovation, and talent development.
02—Key points
Key Highlights
- Total revenue increased 5.4% to $11.9 billion in fiscal year 2025.
- Comparable restaurant sales decreased by 1.7% in 2025, attributed to lower transactions, although average check size saw a 1.2% increase.
- Chipotle opened 334 new company-owned restaurants in 2025, with 257 featuring Chipotlanes, and plans for 350-370 new openings in 2026.
- Digital sales represented 36.7% of total food and beverage revenue in 2025, showing continued strength in this channel.
- Labor costs increased as a percentage of total revenue (25.1% in 2025 vs. 24.7% in 2024) due to wage inflation and lower sales volumes, partially offset by menu price increases.
- General and administrative expenses decreased by 6.5% in 2025, largely due to lower stock-based compensation and bonus expenses.
- The company has a strong liquidity position with $1.1 billion in cash and marketable investments as of December 31, 2025, and $1.7 billion available for share repurchases.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 4, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $11.93B$11.31B | +5.4% |
| Operating Expenses | $9.99B$9.40B | +6.3% |
| Operating Income | $1.94B$1.92B | +1.0% |
| Net Income | $1.54B$1.53B | +0.1% |
| EPS (Basic) | $1.15$1.12 | +2.7% |
| EPS (Diluted) | $1.14$1.11 | +2.7% |
| Shares Outstanding (Basic) | 1.34B1.37B | −2.3% |
| Shares Outstanding (Diluted) | 1.34B1.38B | −2.5% |
05—Questions
Frequently Asked Questions
What was Chipotle's comparable restaurant sales performance in 2025, and what is the outlook for 2026?
In fiscal year 2025, Chipotle experienced a 1.7% decrease in comparable restaurant sales, primarily due to a 2.9% drop in transactions, although this was partially offset by a 1.2% increase in average check. For 2026, management anticipates comparable restaurant sales to be "about flat."
How is Chipotle planning to grow its restaurant footprint?
Chipotle continues its aggressive expansion strategy, having opened 334 new company-owned restaurants in 2025, with 257 of those featuring Chipotlanes. The company plans to open approximately 350 to 370 new restaurants in 2026, with about 80% of new company-owned restaurants expected to include a Chipotlane. They also plan to open 10 to 15 international partner-operated restaurants in 2026.
What are the key cost pressures impacting Chipotle's profitability?
Key cost pressures include rising labor costs, which increased as a percentage of revenue in 2025 due to wage inflation and lower sales volumes, though partially offset by menu price increases. Food, beverage, and packaging costs also saw inflationary impacts, particularly for beef and chicken, along with a 0.2% impact from tariffs enacted in 2025. Other operating costs, including marketing and promotional activities, also increased as a percentage of revenue.
What is the company's financial position and outlook for cash flow?
As of December 31, 2025, Chipotle reported $1.1 billion in cash and marketable investments, and had $1.7 billion available for share repurchases. The company expects to generate positive cash flow and believes its cash from operations will be sufficient to meet its capital expenditures, working capital requirements, and other cash needs for the foreseeable future.
06—Continue