Chipotle Reports Q1 2025 Earnings Growth Amid Slower Traffic, Invests in Expansion and Innovation

NEWPORT BEACH, Calif. – Chipotle Mexican Grill, Inc. (NYSE: CMG) on Wednesday announced its first quarter 2025 financial results, highlighting modest earnings growth and a continued investment in store expansion despite headwinds from macroeconomic pressures and consumer spending softness.

For the quarter ended March 31, 2025, Chipotle’s total revenue rose 6.4% year-over-year to $2.88 billion, driven by new restaurant openings. However, comparable restaurant sales fell 0.4%, as a 2.3% decline in transactions was only partially offset by a 1.9% increase in average check size.

Net income grew to $386.6 million, or $0.28 per diluted share, up from $359.3 million, or $0.26 per share, in the year-ago period. Adjusted diluted EPS rose 7.4% to $0.29, while restaurant-level operating margin declined to 26.2% from 27.5%, due to rising food, labor, and packaging costs.

Operational Performance and Cost Pressures
CEO Scott Boatwright acknowledged the quarter’s challenges, stating:

“Weather disruptions and weaker consumer demand weighed on Q1 results, but our team continues to focus on operational improvements and long-term brand building. We remain committed to investing in our people, culinary innovation, and expanding access through Chipotlanes and international growth.”

Food, beverage, and packaging costs rose to 29.2% of revenue, up from 28.8% in Q1 2024, largely due to inflation in avocados, dairy, and chicken. Labor costs climbed to 25.0% of revenue, affected by wage pressures including minimum wage hikes in California.

Restaurant Growth and Digital Engagement
During the quarter, Chipotle opened 57 company-owned restaurants, of which 48 included Chipotlanes. Two new international licensed units also opened, reflecting the company’s commitment to growing its global footprint. As of March 31, the company operated 3,781 restaurants, with Chipotlanes featured in over 80% of new openings.

Digital sales accounted for 35.4% of total food and beverage revenue, underscoring the continued relevance of online ordering and delivery in the post-pandemic landscape.

Cash Flow and Shareholder Returns
Operating cash flow totaled $557.1 million, while the company returned $553.7 million to shareholders via stock repurchases, buying back shares at an average price of $54.15. As of quarter-end, $874.7 million remained authorized for future repurchases.

Outlook for 2025
For the full year, Chipotle expects:

Low single-digit comparable sales growth

315 to 345 new company-owned restaurant openings

Over 80% of new locations to include a Chipotlane

An effective tax rate between 25% and 27%, excluding discrete items

Boatwright expressed confidence in a return to positive transaction comps by the second half of the year, as consumer conditions stabilize and Chipotle continues to emphasize value and operational execution.