Chipotle Mexican Grill has reported a slight fall in third‑quarter (Q3) profit and has lowered its same‑store sales guidance amid softer traffic and cost pressures.
Net income for the quarter ended 30 September 2025 was $382.1m, or $0.29 per diluted share, down from $387.4m – $0.28 per diluted share – a year earlier.
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Net sales rose 7.5% year-on-year to $3bn, driven by new restaurant openings and a 0.3% increase in comparable restaurant sales.
The rise in comparable sales reflected a 1.1% increase in average check but was partly offset by an 0.8% decline in transactions.
Digital orders accounted for 36.7% of total food and beverage revenue.
Chipotle opened 84 company‑operated restaurants and two international partner‑operated sites during the quarter.
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By GlobalDataFor the full year 2025, the fast-casual restaurant chain expects to open between 315 and 345 company‑owned restaurants.
It is targeting between 350 and 370 openings in 2026, including 10 to 15 international partner‑operated locations.
Food, beverage and packaging expenses were 30% of revenue in Q3, down from 30.6% a year earlier.
The company attributed the decline chiefly to menu price increases implemented in 2024 and efficiencies in cost of sales, partially offset by inflationary pressure on ingredients such as beef and chicken and the impact of newly enacted tariffs.
Labour costs rose to 25.2% of revenue from 24.9%, primarily reflecting lower sales volumes and wage inflation, partly offset by the benefit of last year’s menu price increases.
General and administrative expenses increased to $146.7m from $126.6m a year earlier, principally because of higher stock‑based compensation.
The previous year benefitted from a reduction in expense related to equity awards forfeited by the company’s former CEO.
During the quarter, Chipotle bought back $686.5m of its stock at an average price of $42.39 per share.
The company now expects full‑year same‑store sales to decline by a low‑single digit percentage in fiscal 2025 – a notable revision from its February guidance that projected low to mid‑single digit comparable sales growth.
Chipotle CEO Scott Boatwright stated: “While we continue to see persistent macroeconomic pressures, our extraordinary value proposition and brand strength remain strong.
“Our best-in-class teams are focused on doubling down on restaurant execution, sharpening our marketing message, accelerating menu innovation and creating more engaging digital experiences to ensure we emerge stronger and get back to driving positive transaction growth.”
