Chipotle (CMG) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 grew 5.4% year-over-year to $11.9 billion, driven by new restaurant openings despite a 1.7% decline in comparable sales.

• Adjusted diluted EPS increased 4.5% to $1.17, with net income at $1.54 billion for 2025.

• Opened a record 345 new restaurants globally, surpassing 4,000 total locations, and launched the "Recipe for Growth" strategy.

• Strategic focus included operational excellence, menu innovation, technology deployment, and international expansion.

• Leadership transitions and internal promotions were highlighted, with ongoing searches for key executive roles.

Financial highlights

• Q4 revenue rose 4.9% to $3.0 billion, with comparable sales down 2.5% and digital sales accounting for over 36% of revenue.

• Restaurant-level operating margin was 25.4% for 2025 and 23.4% for Q4, with a $27 million gift card breakage benefit in Q4.

• Adjusted diluted EPS for Q4 was $0.25, flat year-over-year.

• Opened 132 new restaurants in Q4, including 97 company-owned and 7 partner-operated.

• Ended the year with $1.3 billion in cash and no debt; repurchased $2.4 billion in stock.

Outlook and guidance

• 2026 comparable restaurant sales expected to be about flat, with comps anticipated to improve as the year progresses.

• Plans to open 350 to 370 new restaurants in 2026, including 10 to 15 international partner-operated locations.

• Pricing expected to contribute 1%-2% for the year, while inflation is projected at 3%-4%, creating margin pressure.

• Marketing spend to remain elevated, supporting limited-time offers and new product launches.

• Long-term targets include over 7,000 North American restaurants and $4 million AUVs with margins approaching 30%.