Chipotle Mexican Grill, Inc. has released its financial results for the third quarter of 2025, revealing a solid performance despite ongoing economic pressures. The company reported a total revenue of $2.7 billion, reflecting a 15.2% year-over-year increase. However, comparable restaurant sales showed only a modest growth of 0.3%, indicating a shift in consumer spending patterns.
Revenue Growth Driven by New Openings and Menu Adjustments
The increase in revenue was largely attributed to new restaurant openings and strategic menu price adjustments. In his remarks, Scott Boatwright, Chief Executive Officer of Chipotle, emphasized the company’s resilience: “While we continue to see persistent macroeconomic pressures, our extraordinary value proposition and brand strength remain strong.” He added that the company is focused on enhancing restaurant execution, refining marketing strategies, and accelerating menu innovation to foster stronger customer engagement.
Chipotle opened 68 new restaurants in the third quarter, with 58 of those featuring Chipotlanes, which are drive-thru lanes designed for digital order pick-ups. This expansion supports the company’s growth strategy, as it aims to open between 315 and 345 new locations throughout 2025. By 2026, Chipotle plans for more than 80% of its company-owned restaurants to include a Chipotlane.
Profitability and Cost Management Amid Economic Pressures
Despite the slight increase in revenue, profitability showed signs of improvement as the restaurant-level operating margin rose to 25.2%, up from 24.5% in the previous year. This increase was supported by higher sales and a decrease in avocado costs, which helped to offset rising prices for other ingredients, including beef. Nevertheless, labor costs have seen a slight uptick, driven by wage inflation and necessary staffing investments for new openings.
Net income for the third quarter 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 same quarter of 2024. In a move to enhance shareholder value, Chipotle repurchased $686.5 million of its stock at an average price per share of $42.39.
Looking ahead, Chipotle remains cautious yet optimistic. The company has reaffirmed its full-year 2025 outlook and is preparing for potential challenges posed by rising student loan payments, slow wage growth, and increasing health insurance costs, which have impacted younger consumers’ dining habits. Management anticipates opening between 350 and 370 new restaurants in 2026, which includes plans for 10 to 15 international partner-operated locations.
As Chipotle navigates these economic challenges, its strategic focus on growth, cost management, and enhancing customer experience will be vital for maintaining its competitive edge in the fast-casual dining market.
