01—Abstract
Summary
Summary of the 10-Q filed April 24, 2025. Cited figures are marked; the original filing is the authoritative source.
Chipotle Mexican Grill, Inc. (CMG) reported its first-quarter 2025 results, highlighting a 6.4% increase in total revenue to $2.9 billiona, driven by a modest rise in average check.
However, comparable restaurant sales experienced a slight decrease of 0.4%b, attributed to a 2.3% decline in transactions, which was partially offset by a 1.9% increase in average check. This slowdown in transactions is linked to broader consumer spending headwinds and adverse weather conditions. The company continued its strategic expansion, opening 57 new restaurants, with 80% featuring Chipotlanes, underscoring a commitment to enhancing convenience and accessibility.
Financially, net income rose to $386.6 millionc from $359.3 million in the prior year period, with diluted earnings per share increasing to $0.28. The company maintained a strong liquidity position with approximately $2.0 billion in cash and marketable investments.
Chipotle also actively engaged in its share repurchase program, spending $553.7 milliond in the quarter, and has a substantial authorization remaining for future buybacks. Despite some cost pressures, particularly in food, beverage, and packaging due to inflation, and wage inflation impacting labor costs, the company's operational and financial performance demonstrates resilience and a continued focus on growth and shareholder returns.
02—Key points
Key Highlights
- Total revenue grew by 6.4% to $2.9 billion in Q1 2025.
- Comparable restaurant sales saw a marginal decrease of 0.4%, impacted by a 2.3% drop in transactions.
- Net income increased to $386.6 million, with diluted EPS rising to $0.28.
- Chipotle opened 57 new restaurants in the quarter, with 48 featuring Chipotlanes, reinforcing its expansion strategy.
- The company repurchased $553.7 million of its common stock during the quarter, demonstrating a commitment to returning capital to shareholders.
- Food, beverage, and packaging costs as a percentage of revenue increased to 29.2% due to inflation and ingredient mix shifts.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 24, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $2.88B$2.70B | +6.4% |
| Operating Expenses | $2.40B$2.26B | +6.0% |
| Operating Income | $479.25M$441.29M | +8.6% |
| Net Income | $386.60M$359.29M | +7.6% |
| EPS (Basic) | $0.29$0.26 | +11.5% |
| EPS (Diluted) | $0.28$0.26 | +7.7% |
| Shares Outstanding (Basic) | 1.35B1.37B | −1.3% |
| Shares Outstanding (Diluted) | 1.36B1.38B | −1.5% |
05—Questions
Frequently Asked Questions
What drove the change in comparable restaurant sales?
Comparable restaurant sales decreased by 0.4% primarily due to a 2.3% decline in transactions. This was partially offset by a 1.9% increase in average check. The decrease in transactions is attributed to a general slowdown in consumer spending and periods of inclement weather.
How is Chipotle managing increased costs for food, beverage, and packaging?
Food, beverage, and packaging costs increased by 0.4% as a percentage of total revenue. This was driven by inflation in key ingredients like avocados, dairy, and chicken, as well as a shift in protein mix. Chipotle is utilizing menu price increases and supply chain initiatives to partially offset these higher costs.
What is Chipotle's strategy for new restaurant development?
Chipotle opened 57 new restaurants in the first quarter of 2025, with 48 of them featuring Chipotlanes. The company plans to open approximately 315 to 345 company-owned restaurants in 2025, with at least 80% expected to include a Chipotlane.
What is the company's approach to shareholder returns?
Chipotle actively engages in share repurchases. In the first quarter of 2025, the company repurchased $553.7 million of its common stock. As of March 31, 2025, approximately $874.7 million remained available under its authorized repurchase programs.
06—Continue