Chipotle Raises Annual Sales Guidance as Transactions Recover
Total revenue grew 9.3% year-over-year to $3.3 billion in the second quarter.
Chipotle Mexican Grill (CMG) reported a recovery in comparable restaurant sales for the second quarter, ending a period of contraction and flat growth. The fast-casual chain saw comparable sales increase 2.2%, a reversal from a 2.5% decrease in the fourth quarter of 2024 and a slight improvement over the 0.5% growth recorded in the first quarter of 2025.
Total revenue rose 9.3% to $3.3 billion. This growth rate accelerated from the 7.4% increase reported in the prior quarter. Comparable sales growth was driven by a 1.2% increase in average checks and a 1.0% increase in transactions. This marked the second consecutive quarter of improving transaction volume.
Margins remained below previous year levels despite a sequential rebound. Operating margin was 15.7% in the second quarter, down from 18.2% in the same period last year, but up from 12.9% in the first quarter of 2025. Restaurant-level operating margin followed a similar trajectory, falling to 25.2% from 27.4% a year earlier, though it rose from 23.7% in the previous quarter.
Cost pressures contributed to the margin compression. Food, beverage, and packaging costs rose to 29.7% of revenue from 28.9% in the second quarter of 2024, due to beef and freight inflation. Labor costs as a percentage of revenue were 25.0%, an increase from 24.7% a year ago, though down from 26.1% in the first quarter.
Digital sales accounted for 38.3% of total food and beverage revenue. This was an increase from 35.5% in the second quarter of 2024, though it represented a slight decrease from the 38.6% share reported in the first quarter of 2025.
Chipotle raised its full-year comparable sales guidance to the "low single digit range" for 2025. The company also disclosed $3.3 million in restructuring costs for its "Recipe for Growth" initiative and $10.0 million in legal proceeding reserves within its general and administrative expenses.
On June 11, 2025, the company announced a new $1.3 billion share repurchase authorization. Total remaining available funds for repurchases were $1.7 billion as of June 30, 2025.