Chipotle (CMG) Q2 2025 earnings summary

Executive summary

• Total revenue for Q2 2025 increased 3% year-over-year to $3.1 billion, despite a 4% decline in comparable sales and a 4.9% drop in transactions, partially offset by a 0.9% increase in average check.

• Net income for Q2 2025 was $436.1 million, or $0.32 per diluted share, down from $455.7 million and $0.33 per share a year ago; adjusted diluted EPS was $0.33, down 3% year-over-year.

• Opened 61 new restaurants, including 47 with Chipotlanes, bringing total company-owned restaurants to 3,839 at quarter-end.

• Digital sales accounted for 35.5% of total sales, with 20 million active loyalty members and a 14% increase in enrollments from the Summer of Extras program.

• Strategic focus on operational efficiency, menu innovation, digital engagement, and international expansion.

Financial highlights

• Food, beverage, and packaging costs improved to 28.9% of revenue, down 0.5% year-over-year, benefiting from menu price increases and supply chain efficiencies.

• Labor costs rose to 24.7% of sales, up 0.6% year-over-year, mainly due to lower volumes and wage inflation.

• Marketing costs increased to 2.7% of sales, up 60 basis points, with expectations to reach up to 3% if ROI is strong.

• General and administrative expenses decreased 1.6% year-over-year, reflecting lower stock-based compensation and performance bonuses.

• Ended the quarter with $2.1 billion in cash and no debt; repurchased $436 million in stock during Q2.

Outlook and guidance

• Comparable sales expected to be flat for the full year 2025 due to ongoing volatility in consumer trends.

• Plan to open 315-345 new restaurants in 2025, with at least 80% featuring Chipotlanes.

• Targeting mid-single-digit comp growth and $4 million AUVs longer term, with 40% flow-through intact.

• Cost of sales inflation projected in the low single-digit range for the remainder of the year.

• Effective tax rate for 2025 estimated at 25%-27%.