Chipotle (CMG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 6.4% to $2.9B, driven by 57 new restaurant openings (48 with Chipotlanes), despite a 0.4% decline in comparable sales and digital sales at 35.4% of total.

• Net income increased 7.6% to $386.6M, with adjusted diluted EPS up 7.4% to $0.29 and GAAP EPS at $0.28.

• International expansion continued in Canada, the Middle East (2 licensed openings), and plans for Mexico via partnership with Alsea.

• Consumer headwinds, including economic uncertainty and weather, impacted traffic, but brand strength and value proposition remain high.

• Completed a 50-for-1 stock split in June 2024; all share and per-share data retroactively adjusted.

Financial highlights

• Restaurant-level margin was 26.2%, down 130 bps YoY; operating margin improved to 16.7% from 16.3%.

• Food, beverage, and packaging costs rose to 29.2% of revenue (+40 bps), labor costs at 25% (+60 bps), and marketing/promo at 3% (+10 bps).

• General and administrative expenses decreased 15.6% to $172.8M, mainly due to lower conference and legal costs.

• Ended quarter with $2.1B in cash and no debt; cash provided by operating activities was $557.1M.

• Repurchased $554M in stock in Q1; $875M remains authorized for future repurchases.

Outlook and guidance

• Expecting low single-digit full-year comparable sales growth and a return to positive transaction growth in H2 2025.

• Plans to open 315–345 company-owned restaurants in 2025, with at least 80% featuring Chipotlanes.

• Tariffs enacted in April 2025 expected to increase food, beverage, and packaging costs by 50 bps ongoing, with a 20 bps impact in Q2.

• Full-year cost of sales inflation projected in low single digits, excluding certain items; labor costs to be in mid-24% range for Q2.

• Marketing spend to increase in summer; G&A to rise with investments in people and tech.