01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Chipotle Mexican Grill, Inc. (CMG) reported its third-quarter 2025 financial results, showcasing continued revenue growth driven by higher average checks, though transaction volumes experienced a slight decline.
Total revenue increased by 7.5% to $3.0 billiona, while comparable restaurant sales saw a modest increase of 0.3%. Diluted earnings per share grew to $0.29, up from $0.28 in the prior year period. The company continues to execute its growth strategy, opening 84 new restaurants, with a significant portion featuring Chipotlanes, and remains on track with its full-year unit development targets.
Management anticipates comparable restaurant sales to be in the low-single digit decline range for the full year 2025. Despite rising costs in labor and other operating expenses, partly due to wage inflation and increased marketing efforts, Chipotle managed to improve its food, beverage, and packaging costs as a percentage of revenue due to prior menu price increases and efficiencies.
The company's strong cash flow from operations supports its ongoing investment in new restaurant development and a robust share repurchase program, with $652.3 millionb remaining authorization as of the quarter's end. Chipotle maintains a strong balance sheet with $1.7 billion in cash and investments, indicating continued financial stability.
02—Key points
Key Highlights
- Total revenue increased 7.5% year-over-year to $3.0 billion for the third quarter of 2025.
- Comparable restaurant sales increased by 0.3% for the quarter, driven by a 1.1% increase in average check, though transactions decreased by 0.8%.
- Diluted earnings per share (EPS) rose to $0.29, a 3.6% increase from $0.28 in the prior year's third quarter.
- The company opened 84 new restaurants during the quarter, with 64 featuring Chipotlanes, and anticipates opening 315-345 company-owned restaurants in full-year 2025.
- Food, beverage, and packaging costs as a percentage of total revenue decreased by 0.6% due to menu price increases and cost efficiencies, despite some inflation and newly enacted tariffs.
- Labor costs as a percentage of total revenue increased by 0.3%, primarily due to wage inflation and lower sales volumes.
- Chipotle generated $1.7 billion in cash provided by operating activities for the nine months ended September 30, 2025, supporting significant share repurchases totaling $1.7 billion over the same period.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $3.00B$2.79B | +7.5% |
| Operating Expenses | $2.53B$2.32B | +8.9% |
| Operating Income | $477.17M$473.26M | +0.8% |
| Net Income | $382.10M$387.39M | −1.4% |
| EPS (Basic) | $0.29$0.28 | +3.6% |
| EPS (Diluted) | $0.29$0.28 | +3.6% |
| Shares Outstanding (Basic) | 1.33B1.37B | −2.3% |
| Shares Outstanding (Diluted) | 1.34B1.37B | −2.6% |
05—Questions
Frequently Asked Questions
What is Chipotle's outlook for comparable restaurant sales for the remainder of 2025?
For the full year 2025, management is anticipating comparable restaurant sales to be in the low-single digit decline range.
How is Chipotle managing the increase in labor costs?
Labor costs increased as a percentage of total revenue due to wage inflation and lower sales volumes. The company is partially offsetting this with menu price increases implemented in the prior year and efforts to improve sales efficiencies. However, ongoing wage inflation, particularly in regions like California, remains a factor.
What is the company's strategy for capital allocation?
Chipotle's capital allocation priorities include investing in new restaurant construction and development, repurchasing shares of its common stock, and maintaining/refurbishing existing restaurants. The company has significant cash on hand and positive operating cash flow to support these initiatives.
Are tariffs impacting Chipotle's costs, and how is the company responding?
Yes, newly enacted tariffs are beginning to impact food, beverage, and packaging costs. The company estimates a 40 basis point increase in costs during the fourth quarter of 2025 due to imported goods and an ongoing 50 basis point increase thereafter. Chipotle is working with suppliers and has implemented menu price increases to help offset these rising costs.
06—Continue