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CHIPOTLE MEXICAN GRILL INC 8-K Report, Financial Results (Oct 29, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 29, 2025
Period End
October 29, 2025
Security
CMG
In the record · 2016–202610-K1110-Q328-K101

CMG filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 101 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Mar ’19Mar ’19
  2. Material agreement8-K · Apr ’21Apr ’21
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.

Chipotle reported third-quarter 2025 results (quarter ended September 30, 2025) with revenue up 7.5% year over year to $3.0 billiona, driven mainly by new restaurant openings.

Comparable restaurant sales rose a modest 0.3%b, as a 1.1% increase in average check was partially offset by a 0.8% decline in transactions. Profitability compressed: operating margin fell to 15.9% from 16.9%, and restaurant-level operating margin fell to 24.5% from 25.5%, pressured by higher other operating costs (15.0% of revenue vs. 13.8%) and labor (25.2% vs. 24.9%). Food, beverage and packaging costs improved to 30.0% of revenue from 30.6%.

GAAP diluted EPS was $0.29c, up 3.6%, and adjusted diluted EPS was $0.29, up 7.4% from $0.27. Management described persistent macroeconomic pressure and emphasized a focus on restaurant execution, marketing, menu innovation and digital experiences to return to positive transaction growth. Outlook was mixed.

For full-year 2025, management now expects comparable restaurant sales to decline in the low-single-digit range and plans 315 to 345 new company-owned openings, with over 80%d featuring a Chipotlane. The underlying effective tax rate is guided to 25% to 27% before discrete items. For 2026, management targets 350 to 370 new restaurant openings, including 10 to 15 international partner-operated locations.

Capital return remained significant: the company repurchased $686.5 million of stock in the quarter at an average price of $42.39, and $652.3 million remained under authorizations after the Board added $500 million on September 3, 2025. Nine-month cash flow from operations was $1.69 billion, while retained earnings declined sharply to $1.04 billion from $1.57 billion at year-end 2024 due to repurchases.

The 8-K itself is a furnishing of earnings information under Item 2.02 with Exhibit 99.1, the press release. Investors should note that the company will file its Form 10-Q by the end of October 2025 for more detail, and that adjusted metrics exclude items such as stock-based compensation retention grants and the prior-year forfeiture reversal tied to the former CEO.

02—Key points

Key Highlights

  1. Q3 2025 total revenue rose 7.5% to $3.0 billion, with comparable restaurant sales up only 0.3% (average check +1.1%, transactions -0.8%).
  2. Operating margin declined to 15.9% from 16.9%, and restaurant-level operating margin declined to 24.5% from 25.5%, reflecting higher other operating costs (15.0% of revenue vs. 13.8%) and labor (25.2% vs. 24.9%).
  3. Food, beverage and packaging costs improved to 30.0% of revenue from 30.6%, aided by 2024 menu price increases and cost-of-sales efficiencies, partly offset by beef, chicken and tariff-related inflation.
  4. GAAP diluted EPS was $0.29 (up 3.6%); adjusted diluted EPS was $0.29 (up 7.4% from $0.27), with GAAP G&A of $146.7 million versus $126.6 million a year earlier.
  5. Full-year 2025 guidance calls for low-single-digit comparable sales declines and 315 to 345 new company-owned openings; 2026 targets 350 to 370 openings including 10 to 15 international partner-operated restaurants.
  6. The company repurchased $686.5 million of stock in Q3 at an average $42.39 per share, with $652.3 million remaining on authorizations after a $500 million increase approved September 3, 2025.
  7. Digital sales reached 36.7% of food and beverage revenue, and the company had 3,916 company-owned restaurants at quarter end after opening 84 in the quarter.

03—Questions

Frequently Asked Questions

  1. Why did Chipotle's margins decline despite revenue growth?

    Revenue growth came mainly from new restaurant openings, while comparable sales were nearly flat and transactions fell 0.8%. That limited operating leverage on fixed costs. Other operating costs rose to 15.0% of revenue from 13.8%, and labor rose to 25.2% from 24.9%, which pushed operating margin down to 15.9% from 16.9%. Lower food and packaging costs partly offset these pressures.

  2. What is the company's full-year 2025 outlook?

    Management expects full-year 2025 comparable restaurant sales to decline in the low-single-digit range. It plans 315 to 345 new company-owned restaurant openings, with over 80% including a Chipotlane, and an underlying effective tax rate of 25% to 27% before discrete items.

  3. How much capital has Chipotle returned to shareholders?

    In Q3 2025 the company repurchased $686.5 million of stock at an average price of $42.39. Over the first nine months, repurchases totaled $1.68 billion. As of September 30, 2025, $652.3 million remained under authorizations, including an additional $500 million approved by the Board on September 3, 2025. The repurchase program can be modified, suspended or discontinued at any time.

  4. Are the adjusted earnings figures different from GAAP results?

    Yes. Q3 2025 GAAP diluted EPS was $0.29, and adjusted diluted EPS was also $0.29. The adjustments added back $8.1 million of stock-based compensation retention grants tied to the CEO transition. In the prior-year quarter, the adjustments removed a $27.9 million stock-based compensation reversal from a forfeiture by the former CEO, which lowered that year's adjusted EPS to $0.27 from GAAP $0.28.

04—Continue

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