Chipotle (CMG) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose 7.5% year-over-year to $3.0 billion, with comparable sales up 0.3% and digital sales comprising 36.7% of total sales.

• 84 new restaurants opened, including 64 with Chipotlanes, and two international partner-operated locations added in the Middle East.

• Net income for Q3 2025 was $382.1 million, or $0.29 per diluted share, with adjusted diluted EPS up 7.4%.

• Restaurant-level margin declined 100 basis points to 24.5% year-over-year.

• Persistent macroeconomic pressures, especially among lower-income guests, led to reduced frequency and transaction softness.

Financial highlights

• Comparable restaurant sales increased 0.3% year-over-year, with a 1.1% rise in average check offset by a 0.8% decline in transactions.

• Restaurant-level margin was 24.5%, down 100 basis points from last year.

• Adjusted diluted EPS was $0.29, up 7.4% year-over-year; GAAP EPS grew 3.6%.

• Net income for Q3 2025 was $382.1 million.

• Food, beverage, and packaging costs decreased to 30% of revenue, while labor costs rose to 25.2%.

Outlook and guidance

• Full-year 2025 comparable restaurant sales expected to decline in the low single-digit range.

• 315–345 new company-owned restaurant openings planned for 2025, and 350–370 in 2026, with over 80% featuring Chipotlanes.

• Tariffs enacted since April 2025 expected to increase food, beverage, and packaging costs by about 50 basis points ongoing.

• Pricing strategy for 2026 will be gradual, not fully offsetting inflation, to maintain value proposition.

• Estimated underlying effective full year tax rate for 2025 between 25% and 27% before discrete items.