Chipotle Mexican Grill, Inc. has released its financial results for the third quarter of 2025, revealing a 15.2% increase in total revenue, which reached $2.7 billion. However, comparable restaurant sales saw only a modest growth of 0.3%. The company attributes the revenue increase to new restaurant openings and menu price adjustments that have helped maintain steady traffic.
In a statement, Chief Executive Officer Scott Boatwright remarked, “While we continue to see persistent macroeconomic pressures, our extraordinary value proposition and brand strength remain strong.” He emphasized the company’s commitment to enhancing restaurant execution, refining marketing strategies, accelerating menu innovation, and developing more engaging digital experiences. These efforts aim to ensure that Chipotle emerges from current challenges with positive transaction growth.
Profitability Improves Despite Rising Costs
Chipotle’s restaurant-level operating margin expanded to 25.2%, up from 24.5% in the same quarter last year. The increase in margin was driven by higher sales and a decrease in avocado costs, which helped balance the rising prices of other ingredients, particularly beef. The company also reported a slight rise in labor costs due to wage inflation and investments in staffing for new restaurant openings.
For the third quarter, net income was reported at $382.1 million, or $0.29 per diluted share, down from $387.4 million, or $0.28 per diluted share in the third quarter of 2024. During this period, Chipotle repurchased $686.5 million of its stock at an average price of $42.39 per share.
Expansion Plans and Future Outlook
In line with its growth strategy, Chipotle opened 68 new restaurants in the third quarter, with 58 featuring Chipotlanes, the company’s drive-thru digital order pick-up lanes. The company has reaffirmed its outlook for the full year of 2025, projecting between 315 and 345 new restaurant openings. By 2026, over 80% of company-owned restaurants are expected to include a Chipotlane.
Looking ahead, management anticipates opening between 350 and 370 new restaurants in 2026, including 10 to 15 international partner-operated locations. Despite these optimistic plans, Chipotle acknowledges that rising student loan payments, sluggish wage growth, and increased health insurance costs have led to a decline in dining out among younger consumers.
In conclusion, Chipotle’s latest financial results reflect a combination of growth and challenges, as the company navigates through a shifting economic landscape while maintaining its focus on expansion and profitability.
