Chipotle (CMG) Reports Second Quarter 2025 Earnings Results

Chipotle Mexican Grill, Inc. (CMG) today announced its financial results for the latest quarter, revealing earnings per share of $0.33, which slightly beat analysts’ expectations of $0.32565. However, the company reported revenue of $3.06 billion, falling short of the estimated $3.11 billion by approximately $47.5 million. Despite the revenue miss, Chipotle’s ability to exceed earnings expectations highlights its resilience in a competitive market.

Key Highlights:

• Total revenue increased by 3.0% to $3.1 billion.
• Comparable restaurant sales decreased by 4.0%.
• Operating margin decreased to 18.2% from 19.7%.
• Restaurant level operating margin decreased to 27.4% from 28.9%.
• Diluted earnings per share decreased by 3.0% to $0.32.
• Opened 61 company-owned restaurants, with 47 featuring a Chipotlane.
• Digital sales accounted for 35.5% of total food and beverage revenue.
• Management anticipates flat full-year comparable restaurant sales for 2025 and plans to open 315 to 345 new company-owned restaurants.

Summary: Chipotle Mexican Grill reported its second-quarter results for 2025, revealing a total revenue increase of 3.0% to $3.1 billion, driven primarily by new restaurant openings. However, comparable restaurant sales fell by 4.0%, attributed to a 4.9% decrease in transactions, partially offset by a 0.9% increase in average check. CEO Scott Boatwright expressed optimism about the company’s momentum, stating, “We are seeing momentum build as we rolled out our summer marketing initiatives and as our comparisons ease.” He emphasized the commitment to delivering high-quality meals and enhancing guest experience through new tools and menu innovations.

Looking ahead, management projects flat comparable restaurant sales for the full year of 2025 and plans to open between 315 to 345 new company-owned restaurants, with over 80% expected to include a Chipotlane. The company continues to focus on digital sales, which represented 35.5% of total food and beverage revenue, and aims to improve operational efficiencies while navigating challenges such as inflation and labor costs.

Chipotle Mexican Grill, Inc. (CMG) has experienced a rollercoaster of price changes recently, with a notable decline of 2.91% over the past week, reflecting some investor caution. Despite this short-term dip, the stock has shown resilience with an 11.21% increase over the last three months, suggesting a potential recovery phase. However, the one-year performance remains lackluster, down 2.20%, indicating that the market may be weighing the company’s high price-to-earnings ratio of 46.47 against its recent earnings challenges, as evidenced by a staggering -80.21% EPS growth rate over the past two years. On a more positive note, Chipotle’s revenue has grown at a solid 13.08% CAGR during the same period, and its free cash flow has surged by 22.45%, showcasing the company’s operational strength. The return on invested capital stands at a robust 21.31%, and a net profit margin of 13.57% highlights its efficiency in converting revenue into profit. As investors navigate these mixed signals, the fundamental metrics suggest that while Chipotle is facing some headwinds, its underlying business remains strong and capable of generating cash flow. The coming quarters will be crucial for the company to regain investor confidence and translate its operational success into sustained stock price appreciation.

Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. As of February 15, 2022, it owned and operated approximately 3,000 restaurants in the United States, Canada, the United Kingdom, France, Germany, and rest of Europe. The company was founded in 1993 and is headquartered in Newport Beach, California.