Chipotle Mexican Grill
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did CMG Beat Earnings? Q2 2025 Results
Chipotle Mexican Grill delivered a mixed second quarter, posting adjusted earnings of $0.33 per share, edging past the $0.33 consensus estimate by 1.32%, while revenue of $3.06 billion fell 1.71% short of the $3.12 billion analysts had expected, rising just 3.0% year over year as a 4.0% decline in comparable restaurant sales weighed heavily on the top line. The comp sales drop, driven primarily by a 4.9% transaction decline, was the central story of the quarter, triggering a sharp selloff in shares as investors digested a full-year outlook revised to approximately flat comparable sales, down from a prior low-single-digit growth expectation. Management offered some reassurance, noting that sales trends turned positive in June and carried into July, with summer marketing campaigns, new menu items like Chipotle Honey Chicken, and a revamped loyalty program credited for the recovery. For investors <a href="https://247wallst.com/investing/2025/07/23/live-earnings-coverage-can-chipotle-cmg-keep-the-momentum-going/">tracking the company's momentum</a>, the path forward hinges on whether those early signs of stabilization can solidify across Chipotle's 3,839 locations as the company pursues its long-term goal of 7,000 North American restaurants.
- New restaurant openings drove total revenue increase of 3.0%
- Comparable restaurant sales decreased 4.0% due to 4.9% lower transactions, partially offset by 0.9% average check increase
- Food, beverage and packaging costs improved to 28.9% from 29.4% due to 2024 menu price increases and cost efficiencies
- Labor costs increased to 24.7% from 24.1% due to lower sales volumes
- Digital sales represented 35.5% of total food and beverage revenue
- Return to positive comparable sales and transactions in June
“We are seeing momentum build as we rolled out our summer marketing initiatives and as our comparisons ease. Our talented restaurant teams remain focused on delivering hand-crafted meals in abundance with the best ingredients, made fresh daily using classic culinary techniques at a value you cannot find anywhere else. I am optimistic that our positive momentum will continue as we further support our world-class people with new tools to improve execution, introduce new menu innovations, amplify our rewards program, and introduce this great brand to more communities around the globe.”
Chipotle Mexican Grill CEO, on the earnings call
Forward Guidance & Outlook
For full year 2025, management anticipates approximately flat comparable restaurant sales, 315 to 345 new company-owned restaurant openings with over 80% including a Chipotlane, and an estimated underlying effective full year tax rate between 25% and 27% before discrete items. The company has a long-term goal of 7,000 restaurants in the U.S. and Canada and continued international expansion.
CMG YoY Financials
CMG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.