Chipotle: Announces First Quarter 2025 Results

Imagery Source: Tdorante10
Information Source: Chipotle Mexican Grill, Inc
Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its first quarter ended March 31, 2025.
First quarter highlights, year over year:
  • Total revenue increased 6.4% to $2.9 billion
  • Comparable restaurant sales decreased 0.4%
  • Operating margin was 16.7%, an increase from 16.3%
  • Restaurant level operating margin1 was 26.2%, a decrease from 27.5%
  • Diluted earnings per share were $0.28, a 7.7% increase from $0.262
  • Adjusted diluted earnings per share1 were $0.29, a 7.4% increase from $0.27 2
  • Opened 57 company-owned restaurants with 48 locations, including a Chipotle and two international licensed restaurants
"While our first quarter results were impacted by several headwinds including weather and a slowdown in consumer spending, our teams continue to make significant progress improving the execution in our restaurants, innovating our back of house, and building Chipotle into a global iconic brand," said Scott Boatwright, Chief Executive Officer, Chipotle. "I am confident that we have a strong plan to return to positive transaction comps by the second half of the year, and during these uncertain times, we will continue to invest in the things that make Chipotle a special brand – our people, culinary, value proposition, innovation and growth."
Results for the three months ended March 31, 2025: Total revenue in the first quarter of 2025 was $2.9 billion, an increase of 6.4% compared to the first quarter of 2024. The increase in total revenue was driven by new restaurant openings. Comparable restaurant sales decreased 0.4% due to lower transactions of 2.3%, partially offset by a 1.9% increase in average check. Digital sales represented 35.4% of total food and beverage revenue.
During the first quarter we opened 57 company-owned restaurants, of which 48 included a Chipotlane, and two international licensed restaurants. Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins, and returns.
Food, beverage and packaging costs in the first quarter of 2025 were 29.2% of total revenue, an increase from 28.8% in the first quarter of 2024. The increase was due to inflation and higher usage across several items including avocados, dairy, and chicken, as well as a protein mix shift from limited time offerings. This increase was partially offset by the benefit of menu price increases in 2024 and, to a lesser extent, benefits from recent supply chain initiatives.
Labour costs in the first quarter of 2025 were 25.0% of total revenue, an increase from 24.4% in the first quarter of 2024. The increase was primarily due to lower sales volumes as the benefit from menu price increases in 2024 was offset by wage inflation, including minimum wage increases for our restaurants in California.
General and administrative expenses for the first quarter of 2025 were $172.8 million, compared to $204.6 million in the first quarter of 2024. The decrease was primarily due to lower conference expense, primarily associated with our biennial All Managers' Conference held in the 2024 comparable period, and legal reserves. On a non-GAAP basis, general and administrative expenses1 for the first quarter of 2025 were $160.9 million, compared to $191.4 million in the first quarter of 2024.
The effective income tax rate for the first quarter of 2025 was 22.9%, an increase from 22.0% in the first quarter of 2024. The increase was primarily driven by a reduction in tax benefits related to option exercises and equity vesting.
Net income for the first quarter of 2025 was $386.6 million, or $0.28 per diluted share, compared to $359.3 million, or $0.262 per diluted share, in the first quarter of 2024. Adjusted net income1 for the first quarter of 2025 was $396.8 million, or $0.29 per adjusted diluted share, compared to $369.3 million, or $0.272 per adjusted diluted share, in the first quarter of 2024.
During the first quarter of 202,5, we repurchased $553.7 million of stock at an average price per share of $54.15. As of March 31, 2025, $874.7 million remained available under share repurchase authorisations from our Board of Directors, including an additional $400 million in authorisations approved by our Board of Directors on March 27, 2025. The repurchase authorisation may be modified, suspended, or discontinued at any time.
More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the SEC by the end of April 2025.
Outlook
For 2025, management is anticipating the following:
  • Full year comparable restaurant sales growth in the low single-digit range
  • 315 to 345 new company-owned restaurant openings, with over 80% having a Chipotle
  • An estimated underlying effective full-year tax rate between 25% and 27% before discrete items
Definitions
The following definitions apply to these terms as used throughout this release:
  • Comparable restaurant sales, or sales comps, and comparable restaurant transactions, represent the change in period-over-period total revenue or transactions for restaurants in operation for at least 13 full calendar months.
  • Average restaurant sales refers to the average trailing 12-month food and beverage revenue for restaurants in operation for at least 12 full calendar months.
  • Restaurant-level operating margin represents total revenue less direct restaurant operating costs, expressed as a percentage of total revenue.
  • Digital sales represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app or third-party delivery aggregators. Digital sales include revenue deferrals associated with Chipotle Rewards.
About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colours, flavours or preservatives. There are nearly 3,800 restaurants as of March 31, 2025, in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and the United Arab Emirates, and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. With over 130,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.
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Chipotle Mexican Grill, Inc.
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