CHIPOTLE MEXICAN GRILL INC
For the period ended Jun 30, 2025. Filed Jul 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 24, 2025
CMG$34.43-2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0001058090-25-000031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0001058090-25-000056
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 59 current paragraphs.
35 unchanged; 17 reworded; 7 added; 4 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
•Total revenue increased 3.0% to $3.1 billion
Current report
•Comparable restaurant sales decreased 4.0%
Current report
Food, beverage and packaging costs decreased 0.5% as a percentage of total revenue for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily due to a 0.6% benefit from menu price increases in the prior year and from cost of sales efficiencies. This decrease was partially offset by inflation across several ingredient costs, primarily steak and chicken.
Current report
Labor costs increased 0.6% as a percentage of total revenue for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was primarily due to the impact from lower sales volumes. A 0.5% benefit from menu price increases in the prior year and efficient management of labor more than offset wage inflation.
Current report
Other operating costs increased 1.1% as a percentage of total revenue for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The increase was due to the impact from several items, primarily 0.6% of higher marketing and promotional activities and 0.2% of lower sales volumes. These were partially offset by 0.2% from the benefit of menu price increases in the prior year.
Current report
Other operating costs increased 0.6% as a percentage of total revenue for thesix months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was due to the impact from several items, primarily 0.4% of higher marketing and promotional activities and 0.2% of lower sales volumes. These were partially offset by 0.2% from the benefit of menu price increases in the prior year.
Current report
The effective income tax rate remained flat for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The six months ended June 30, 2025 had a 0.4% reduction in tax benefits related to option exercises and equity vesting which was offset primarily by a 0.3% decrease in non-deductible expenses.
Removed paragraphs (4)
Previous report
•Total revenue increased 6.4% to $2.9 billion
Previous report
•Comparable restaurant sales decreased 0.4%
Previous report
Licensing. During the three months ended March 31, 2025, two licensed restaurants were opened in the Middle East.
Previous report
Other operating costs increased 0.1% as a percentage of total revenue for thethree months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was due to the impact from lower sales volumes as a 0.3% benefit from menu price increases in the prior year more than offset the overall increase in costs, primarily associated with utilities and marketing and promotional activities.
Reworded paragraphs (17)
Previous wording
As of March 31, 2025, we owned 3,697 Chipotle restaurants throughout the United States and 84 international Chipotle restaurants. Additionally, we had five international licensed restaurants. We manage our U.S. operations based on 11 regions and aggregate our operations to one reportable segment.
Current wording
As of June 30, 2025, we owned 3,750 Chipotle restaurants throughout the United States and 89 international Chipotle restaurants. Additionally, we had five international licensed restaurants. We manage our U.S. operations based on 11 regions and aggregate our operations to one reportable segment.
Previous wording
Throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations” we commonly discuss the following key operating metrics which we believe will drive our financial results and long-term growth model. We believe these metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies:
Current wording
Throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations” we discuss the following key operating metrics which we believe will drive our financial results and long-term growth model. We believe these metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our marketing and operational strategies:
Previous wording
First Quarter 2025 Financial Highlights, year-over-year:
Current wording
Second Quarter 2025 Financial Highlights, year-over-year:
Previous wording
•Diluted earnings per share was $0.28, a 7.7% increase from $0.26
Current wording
•Diluted earnings per share was $0.32, a 3.0% decrease from $0.33
Previous wording
Sales Trends. Comparable restaurant sales decreased 0.4% for the three months ended March 31, 2025. The decrease is attributable to lower transactions of 2.3% which is offset by a 1.9% increase in average check. Transactions have been impacted by both a slowdown in consumer spending, which has continued into April, as well as periods of inclement weather across the country. Comparable restaurant sales represent the change in period-over-period total revenue for restaurants in operation for at least 13 full calendar months. Digital sales represented 35.4% of total food and beverage revenue.
Current wording
Sales Trends. Comparable restaurant sales decreased 4.0% for the three months ended June 30, 2025. The decrease is attributable to lower transactions of 4.9% which is offset by a 0.9% increase in average check. While transactions have been impacted by a slowdown in consumer spending, we exited the quarter with positive comps and positive transactions. Comparable restaurant sales represent the change in period-over-period total revenue for company-owned restaurants in operation for at least 13 full calendar months. Digital sales represented 35.5% of total food and beverage revenue. For 2025, management is anticipating about flat comparable restaurant sales.
Previous wording
Restaurant Development. During the three months ended March 31, 2025, we opened 57 restaurants, which included 48 restaurants with a Chipotlane. We expect to open approximately 315 to 345 company-owned restaurants in 2025. We expect that at least 80% of our new company-owned restaurants will include a Chipotlane.
Current wording
Restaurant Development. During the three months ended June 30, 2025, we opened 61 restaurants, which included 47 restaurants with a Chipotlane. We expect to open approximately 315 to 345 company-owned restaurants in 2025. We expect that at least 80% of our new company-owned restaurants will include a Chipotlane.
Previous wording
(1)Average restaurant sales refers to the average trailing 12-month food and beverage revenue for restaurants in operation for at least 12 full calendar months.
Current wording
(1)Average restaurant sales refers to the average trailing 12-month food and beverage revenue for company-owned restaurants in operation for at least 12 full calendar months.
Previous wording
Food, beverage and packaging costs increased 0.4% as a percentage of total revenue for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was due to inflation and higher usage across several ingredient costs, primarily avocados, dairy and chicken, as well as a protein mix shift from limited time offerings. This increase was partially offset by a 0.9% benefit from menu price increases in the prior year and, to a lesser extent, a benefit from recent supply chain initiatives.
Current wording
Food, beverage and packaging costs decreased 0.1% as a percentage of total revenue for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily due to a 0.7% benefit from menu price increases in the prior year and, to a lesser extent, from cost of sales efficiencies. This decrease was partially offset by higher usage or inflation across several ingredient costs, primarily chicken, avocados, dairy and steak.
Previous wording
We estimate that the tariffs enacted in April 2025 will increase food, beverage and packaging costs by about 50 basis points on an ongoing basis. Due to goods imported prior to the enactment of tariffs, we anticipate a 20 basis point increase in food, beverage and packaging costs during the second quarter of 2025 relating to tariffs.
Current wording
We estimate that the tariffs enacted since April 2025 will increase food, beverage and packaging costs by about 50 basis points on an ongoing basis. Due to goods imported prior to the enactment of tariffs, we anticipate about a 40 basis point increase in food, beverage and packaging costs during the third quarter of 2025 relating to tariffs. These estimates could vary based on future tariff policy changes.
Previous wording
Labor costs increased 0.6% as a percentage of total revenue for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was due to the impact from lower sales volumes, as a 0.7% benefit from menu price increases in the prior year was offset by restaurant wage inflation, including minimum wage increases for our restaurants in California.
Current wording
Labor costs increased 0.6% as a percentage of total revenue for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. The increase was due to the impact from lower sales volumes, as a 0.6% benefit from menu price increases in the prior year was offset by restaurant wage inflation, including minimum wage increases for our restaurants in California.
Previous wording
Occupancy costs increased 0.2% as a percentage of total revenue for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was due the impact from lower sales volumes, as a 0.1% benefit from menu price increases in the prior year was offset by expenses associated with new restaurants.
Current wording
Occupancy costs increased 0.3% as a percentage of total revenue for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024. The increase was due to the impact from lower sales volumes, as a 0.1% benefit from menu price increases in the prior year was offset by expenses associated with new restaurants.
Previous wording
The effective income tax rate increased 0.9% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase in the effective tax rate for the three months ended March 31, 2025, was primarily driven by an 0.8% decrease in tax benefits related to option exercises and equity vesting.
Current wording
The effective income tax rate decreased 0.5% for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The decrease was primarily driven by a 0.6% decrease in non-deductible expenses, partially offset by a 0.2% reduction in tax benefits related to option exercises and equity vesting.
Previous wording
Seasonal factors cause our profitability to fluctuate from quarter to quarter. Historically, our average daily restaurant sales and net income are lower in the first and fourth quarters due, in part, to the holiday season and because fewer people eat out during periods of inclement weather (the winter months) than during periods of mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on our results. For example, restaurants located near colleges and universities generally do more business during the academic year. Seasonal factors, however, might be moderated or outweighed by other factors that may influence our quarterly results, such as unexpected publicity impacting our business in a positive or negative way, disease outbreak, epidemic or endemic, the impact of inflation on consumer spending, fluctuations in food or packaging costs, the timing of holidays, or the timing of menu price increases or promotional activities and other marketing initiatives. The number of trading days in a quarter can also affect our results, although, on an overall annual basis, changes in trading days do not have a significant impact.
Current wording
Seasonal factors cause our profitability to fluctuate from quarter to quarter. Historically, our average daily restaurant sales and net income are lower in the first and fourth quarters due, in part, to the holiday season and because fewer people eat out during periods of inclement weather (the winter months) than during periods of mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on our results. For example, restaurants located near colleges and universities generally do more business during the academic year. Seasonal factors, however, might be moderated or outweighed by other factors that may influence our quarterly results, such as unexpected publicity impacting our business in a positive or negative way, disease outbreak, epidemic or endemic, the impact of inflation and consumer sentiment on consumer spending, fluctuations in food or packaging costs, the timing of holidays, or the timing of menu price increases or promotional activities and other marketing initiatives. The number of trading days in a quarter can also affect our results, although, on an overall annual basis, changes in trading days do not have a significant impact.
Previous wording
As of March 31, 2025, we had a cash and marketable investments balance of$2.0 billion, non-marketable investments of$88.4 million, and$30.5 million of restricted cash. After funding the current operations in our restaurants and support centers, the first planned use of our cash flow from operations is to provide capital for the continued investment in new restaurant construction. In addition to continuing to invest in our restaurant expansion, we expect to utilize cash flow from operations to: repurchase additional shares of our common stock subject to market conditions; invest in, maintain, and refurbish our existing restaurants; and for general corporate purposes. As of March 31, 2025,$874.7 million remained available for repurchases of shares of our common stock, which includes the $400.0 million additional authorization approved by our Board of Directors on March 27, 2025. Under the remaining repurchase authorizations, shares may be purchased from time to time in open market transactions, subject to market conditions.
Current wording
As of June 30, 2025, we had a cash and marketable investments balance of$2.0 billion, non-marketable investments of$83.3 million, and$30.7 million of restricted cash. After funding the current operations in our restaurants and support centers, the first planned use of our cash flow from operations is to provide capital for the continued investment in new restaurant construction. In addition to continuing to invest in our restaurant expansion, we expect to utilize cash flow from operations to: repurchase additional shares of our common stock subject to market conditions; invest in, maintain, and refurbish our existing restaurants; and for general corporate purposes. As of June 30, 2025,$838.8 million remained available for repurchases of shares of our common stock, which includes the $400.0 million additional authorization approved by our Board of Directors on June 10, 2025. Under the remaining repurchase authorizations, shares may be purchased from time to time in open market transactions, subject to market conditions.
Previous wording
Cash provided by operating activities was $557.1 million for the three months ended March 31, 2025, compared to $569.2 million for the three months ended March 31, 2024. The decrease was primarily due to net cash changes in operating assets and liabilities. This was partially offset by higher net earnings.
Current wording
Cash provided by operating activities was $1.12 billion for the six months ended June 30, 2025, compared to $1.13 billion for the six months ended June 30, 2024. The decrease was primarily due to net cash changes in operating assets and liabilities. This was partially offset by higher net earnings.
Previous wording
Cash provided by investing activities was $6.1 million for the three months ended March 31, 2025, compared to cash used in investing activities of $301.0 million for the three months ended March 31, 2024. The change was primarily associated with a $319.2 million decrease in investment purchases net of investment maturities. This was partially offset by increased capital expenditures of $12.1 million primarily related to costs associated with new restaurant development.
Current wording
Cash provided by investing activities was $8.1 million for the six months ended June 30, 2025, compared to cash used in investing activities of $637.3 million for the six months ended June 30, 2024. The change was primarily associated with a $677.5 million decrease in investment purchases net of investment maturities. This was partially offset by increased capital expenditures of $32.2 million primarily related to costs associated with new restaurant development.
Previous wording
Cash used in financing activities was $585.2 million for the three months ended March 31, 2025, compared to $100.1 million for the three months ended March 31, 2024. The change was primarily due to increased repurchases of common stock of $526.8 million and, to a lesser extent, $39.8 million of lower payments of tax withholding related to stock-based compensation.
Current wording
Cash used in financing activities was $1.0 billion for the six months ended June 30, 2025, compared to $245.4 million for the six months ended June 30, 2024. The change was primarily due to increased repurchases of common stock of $824.7 million and, to a lesser extent, $39.7 million of lower payments of tax withholding related to stock-based compensation.