Chipotle Mexican Grill has reported a net income of $436.1m, or $0.32 per diluted share, for the second quarter (Q2) of 2025, ended 30 June - a slight decrease from $455.7m, or $0.33 per diluted share, in the previous year.

The Q2 results revealed a mixed performance with increased total revenue but decreased comparable restaurant sales and operating margins.

The company's total revenue saw a 3% rise to $3.1bn, driven by new restaurant openings, yet comparable restaurant sales fell 4%.

Operating margin decreased to 18.2% from 19.7% and restaurant-level operating margin declined to 27.4% from 28.9%.

Despite the downturn in some areas, Chipotle continued its expansion by opening 61 new company-owned restaurants, with 47 featuring the Chipotlane drive-through facility.

Digital sales accounted for 35.5% of total food and beverage revenue.

Adjusted net income also saw a marginal decline to $450.4m, or $0.33 per adjusted diluted share, compared to $463.0m, or $0.34 per adjusted diluted share, in Q2 2024.

The brand's stock repurchase programme remained active, with $435.9m worth of stock bought back at an average price of $50.16 per share.

As of the end of the quarter, Chipotle had $838.8m available for further repurchases, bolstered by an additional $400m authorised by the board on 10 June 2025.

Cost efficiencies in food, beverage and packaging, which fell to 28.9% of total revenue, were offset by inflation in ingredient costs, particularly for steak and chicken.

Labour expenses rose to 24.7% of total revenue, attributed to lower sales volumes despite the benefits of previous menu price increases and efficient labour management.

General and administrative expenses decreased to $172.2m, largely due to reduced performance bonuses and stock-based compensation.

On a non-generally accepted accounting principles (GAAP) basis, general and administrative expenses for Q2 2025 were $159.9m, against $171.3m in the previous quarter.

The effective income tax rate also saw a slight reduction to 24.5%, driven by lower non-deductible expenses.

Looking ahead to the full year 2025, management expects comparable restaurant sales to remain flat and plans to open between 315 and 345 new company-owned restaurants, with more than 80% featuring a Chipotlane.

The anticipated underlying effective full-year tax rate is estimated to be between 25% and 27% before discrete items.

For Q1 (ended 31 March 2025), Chipotle reported a 6.4% increase in revenue to $2.9bn, compared with $2.7bn posted in the same period of the previous year.