10-KPeriod: FY2025

CHIPOTLE MEXICAN GRILL INC Annual Report, Year Ended Dec 31, 2025

Filed February 4, 2026For Securities:CMG

Summary

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 billion, 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.

Financial Highlights

46 data points
Beta

Revenue

$11.93B

Net Income

$1.54B

12.9% Net Margin

EPS (Diluted)

$1.14

Total Assets

$8.99B

Cash & Equivalents

$350.55M

Free Cash Flow

$1.45B

Financial Statements
Beta
Revenue$11.93B
Operating Expenses$9.99B
Operating Income$1.94B
Net Income$1.54B
EPS (Basic)$1.15
EPS (Diluted)$1.14
Shares Outstanding (Basic)1.34B
Shares Outstanding (Diluted)1.34B

Key Highlights

  • 1Total revenue increased 5.4% to $11.9 billion in fiscal year 2025.
  • 2Comparable restaurant sales decreased by 1.7% in 2025, attributed to lower transactions, although average check size saw a 1.2% increase.
  • 3Chipotle opened 334 new company-owned restaurants in 2025, with 257 featuring Chipotlanes, and plans for 350-370 new openings in 2026.
  • 4Digital sales represented 36.7% of total food and beverage revenue in 2025, showing continued strength in this channel.
  • 5Labor 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.
  • 6General and administrative expenses decreased by 6.5% in 2025, largely due to lower stock-based compensation and bonus expenses.
  • 7The 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.

Frequently Asked Questions

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."

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.

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.

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.