Chipotle (CMG) Q2 2025 earnings summary

Executive summary

• Q2 revenue rose 3% year-over-year to $3.1 billion, driven by new restaurant openings 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 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 fell 3% to $0.33.

• Opened 61 new restaurants, including 47 with Chipotlanes, bringing total company-owned locations to 3,839; digital sales comprised 35.5% of total sales.

• Operational improvements and marketing initiatives drove a return to positive comp and transaction trends exiting the quarter.

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 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; G&A was $172 million GAAP, $160 million non-GAAP.

• Restaurant-level margin declined 150 basis points to 27.4% year-over-year.

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

Outlook and guidance

• Full-year comparable sales expected to be flat due to ongoing volatility in consumer trends.

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

• Cost of sales for Q3 expected in the high 29% range, with ongoing tariff and LTO impacts.

• Labor costs for Q3 projected in the high 24% range; marketing costs to remain in the high 2% range for the year.

• Estimated underlying effective full-year tax rate between 25% and 27% before discrete items.