Summary
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 billion, 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 million 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.
Financial Highlights
45 data points| Revenue | $3.00B |
| Operating Expenses | $2.53B |
| Operating Income | $477.17M |
| Net Income | $382.10M |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 1.33B |
| Shares Outstanding (Diluted) | 1.34B |
Key Highlights
- 1Total revenue increased 7.5% year-over-year to $3.0 billion for the third quarter of 2025.
- 2Comparable restaurant sales increased by 0.3% for the quarter, driven by a 1.1% increase in average check, though transactions decreased by 0.8%.
- 3Diluted earnings per share (EPS) rose to $0.29, a 3.6% increase from $0.28 in the prior year's third quarter.
- 4The company opened 84 new restaurants during the quarter, with 64 featuring Chipotlanes, and anticipates opening 315-345 company-owned restaurants in full-year 2025.
- 5Food, 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.
- 6Labor costs as a percentage of total revenue increased by 0.3%, primarily due to wage inflation and lower sales volumes.
- 7Chipotle 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.