# Chipotle Mexican Grill, Inc. (CMG) Q2 2025 Financial Results Summary
Chipotle Mexican Grill, Inc. (NYSE: CMG) announced its financial results for the second quarter ended June 30, 2025, on July 23, 2025.
### Financial Highlights
– **Total Revenue**: Increased by **3.0%** to **$3.1 billion** compared to Q2 2024.
– **Comparable Restaurant Sales**: Decreased by **4.0%** year-over-year.
– **Operating Margin**: Reported at **18.2%**, a decrease from **19.7%** in the same quarter of the previous year.
– **Restaurant Level Operating Margin**: Decreased to **27.4%** from **28.9%** a year ago.
– **Diluted Earnings Per Share**: Reported as **$0.32**, a **3.0% decrease** from **$0.33**.
– **Adjusted Diluted Earnings Per Share**: Reported at **$0.33**, down **2.9%** from **$0.34**.
### Operational Highlights
– **New Restaurant Openings**: 61 company-owned restaurants opened, including 47 with a Chipotlane feature.
– **Digital Sales**: Represented **35.5%** of total food and beverage revenue.
– **Total Digital Transactions**: Helped offset the decline in comparable restaurant sales.
### Cost Structure
– **Food, Beverage, and Packaging Costs**: Constituted **28.9%** of total revenue, down from **29.4%** in Q2 2024, primarily due to benefits from price increases and efficiencies, although partially offset by ingredient inflation (notably in steak and chicken).
– **Labor Costs**: Increased to **24.7%** from **24.1%**, mainly attributed to lower sales volumes.
– **General and Administrative Expenses**: Decreased to **$172.2 million** from **$175.0 million** due to reduced performance bonuses and stock-based compensation.
### Tax and Income
– **Effective Income Tax Rate**: Reduced to **24.5%** from **25.0%**, mainly from lower non-deductible expenses.
– **Net Income**: Decreased to **$436.1 million**, or **$0.32** per diluted share, from **$455.7 million** in the previous year.
– **Adjusted Net Income**: Decreased to **$450.4 million**, or **$0.33** per adjusted diluted share, from **$463.0 million** in Q2 2024.
### Share Repurchase
– The company repurchased **$435.9 million** worth of stock at an average price of **$50.16** per share during the quarter.
– As of June 30, 2025, there is **$838.8 million** remaining available under share repurchase authorizations, including a newly approved **$400 million**.
### Outlook for 2025
– The company anticipates **flat full-year comparable restaurant sales**.
– Plans to open between **315 to 345 new company-owned restaurants**, over **80%** of which will include Chipotlanes.
– Expected effective full-year tax rate will range between **25% and 27%** before discrete items.
### Summary
These results represent a challenging quarter for Chipotle, reflecting fluctuations in comparable restaurant sales and some increase in operating costs despite revenue growth and successful expansions. The ongoing initiatives for operational efficiency and digital sales growth continue to be focal points for the company moving forward.
For more detailed information, the Quarterly Report on Form 10-Q will be filed with the SEC by the end of July 2025, and a conference call is scheduled for July 23, 2025, at 4:30 PM Eastern time.
| 2025 | 2024 | |
|---|---|---|
| Food and beverage revenue | $ 3,047,754 | $ 2,954,913 |
| Delivery service revenue | 15,639 | 18,204 |
| Total revenue | $ 3,063,393 | $ 2,973,117 |
| Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||
| Food, beverage and packaging | $ 885,989 | $ 873,673 |
| Labor | $ 756,261 | $ 716,627 |
| Occupancy | $ 154,250 | $ 138,663 |
| Other operating costs | $ 428,663 | $ 384,754 |
| General and administrative expenses | $ 172,151 | $ 175,028 |
| Depreciation and amortization | $ 90,945 | $ 83,562 |
| Pre-opening costs | $ 10,610 | $ 8,995 |
| Impairment, closure costs, and asset disposals | $ 5,467 | $ 5,762 |
| Total operating expenses | $ 2,504,336 | $ 2,387,064 |
| Income from operations | $ 559,057 | $ 586,053 |
| Interest and other income, net | $ 18,355 | $ 21,861 |
| Income before income taxes | $ 577,412 | $ 607,914 |
| Provision for income taxes | $ 141,285 | $ 152,243 |
| Net income | $ 436,127 | $ 455,671 |
| Earnings per share: | ||
| Basic | $ 0.32 | $ 0.33 |
| Diluted | $ 0.32 | $ 0.33 |
| Weighted-average common shares outstanding: | ||
| Basic | 1,344,955 | 1,372,800 |
| Diluted | 1,350,236 | 1,381,518 |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 844,524 | $ 748,537 |
| Accounts receivable, net | $ 105,004 | $ 143,963 |
| Inventory | $ 40,402 | $ 48,942 |
| Prepaid expenses and other current assets | $ 96,506 | $ 97,538 |
| Income tax receivable | $ 80,721 | $ 67,229 |
| Investments | $ 701,968 | $ 674,378 |
| Total current assets | $ 1,869,125 | $ 1,780,587 |
| Leasehold improvements, property and equipment, net | $ 2,503,429 | $ 2,390,126 |
| Long-term investments | $ 518,680 | $ 868,025 |
| Restricted cash | $ 30,704 | $ 29,842 |
| Operating lease assets | $ 4,203,989 | $ 4,000,127 |
| Other assets | $ 120,928 | $ 113,728 |
| Goodwill | $ 21,939 | $ 21,939 |
| Total assets | $ 9,268,794 | $ 9,204,374 |
| Liabilities and shareholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $ 216,347 | $ 210,695 |
| Accrued payroll and benefits | $ 236,947 | $ 261,913 |
| Accrued liabilities | $ 185,090 | $ 179,747 |
| Unearned revenue | $ 206,635 | $ 238,577 |
| Current operating lease liabilities | $ 287,252 | $ 277,836 |
| Total current liabilities | $ 1,132,271 | $ 1,168,768 |
| Long-term operating lease liabilities | $ 4,493,334 | $ 4,262,782 |
| Deferred income tax liabilities | $ 36,297 | $ 46,208 |
| Other liabilities | $ 78,697 | $ 71,070 |
| Total liabilities | $ 5,740,599 | $ 5,548,828 |
| Shareholders’ equity: | ||
| Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of June 30, 2025 and December 31, 2024, respectively | $ – | $ – |
| Common stock, $0.01 par value, 11,500,000 shares authorized, 1,341,425 and 1,358,751 shares issued as of June 30, 2025 and December 31, 2024, respectively | $ 13,414 | $ 13,586 |
| Additional paid-in capital | $ 2,157,080 | $ 2,078,010 |
| Accumulated other comprehensive loss | $ -7,341 | $ -10,282 |
| Retained earnings | $ 1,365,042 | $ 1,574,232 |
| Total shareholders’ equity | $ 3,528,195 | $ 3,655,546 |
| Total liabilities and shareholders’ equity | $ 9,268,794 | $ 9,204,374 |
