Chipotle reported mixed results for Q4 FY2025, with revenue growth driven by new store openings but offset by a decline in comparable restaurant sales. The company launched its 'Recipe for Growth' strategy, aiming to accelerate transactions and expand globally, while facing margin compression and a slowdown in sales growth.
Full year total revenue increased 5.4% to $11.9 billion, driven by new restaurant openings.
positiveOpened a record number of restaurants globally, with 334 company-owned and 11 international partner-operated restaurants in full year 2025.
positiveFood, beverage and packaging costs as a percentage of revenue decreased year-over-year for both Q4 and full year 2025.
positiveGeneral and administrative expenses decreased year-over-year for both Q4 and full year 2025.
positiveComparable restaurant sales decreased 2.5% in Q4 FY2025 and 1.7% for the full year, driven by lower transactions.
negativeOperating margin decreased to 14.1% in Q4 FY2025 from 14.6% in Q4 FY2024, and to 16.2% for full year 2025 from 16.9% in full year 2024.
negativeRestaurant level operating margin decreased to 23.4% in Q4 FY2025 from 24.8% in Q4 FY2024, and to 25.4% for full year 2025 from 26.7% in full year 2024.
negativeLabor costs as a percentage of total revenue increased year-over-year for both Q4 and full year 2025, primarily due to lower sales volumes and wage inflation.
attentionFull year 2026 comparable restaurant sales are anticipated to be about flat.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Through our proven business model, prudent investments in operational excellence and the support of a strong balance sheet, 2025 was a year of progress and resilience for Chipotle.
Against a dynamic consumer backdrop, we opened a record number of restaurants globally and grew Q4 and full year revenue.
This momentum will fuel our next phase of growth, driven by our 'Recipe for Growth' strategy which leans into what uniquely differentiates our brand to accelerate transactions and expand our footprint globally.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.