Chipotle Mexican Grill recently shared its financial results for the year 2025. The company made $11.9 billion, which is a 5.4% increase from the previous year. This growth came despite a slight decline in sales at existing locations. One bright spot was their record-setting opening of 334 new restaurants. However, they noted challenges, especially with rising beef and chicken prices and tariffs impacting costs.
In the fourth quarter alone, revenue reached $3 billion. Although this is a 4.9% increase, sales at existing stores fell by 2.5%. Customer visits dropped by 3.2%, but the average check size grew slightly by 0.7%. Interestingly, digital sales made up 37.2% of their food and beverage revenue during this quarter.
CEO Scott Boatwright mentioned that 2025 was a year of growth for Chipotle, thanks to a strong business model and investments in operations. They successfully opened a record number of restaurants worldwide and increased their overall revenue.
However, the company faced challenges with ingredient costs. In the fourth quarter, food, beverage, and packaging costs were 30.2% of total revenue, down just a bit from 30.4% the prior year. This small dip was due to menu price hikes, lower dairy prices, and smarter cost management. But the benefits were somewhat negated by inflation in beef and chicken costs and ongoing tariffs.
Looking ahead, Chipotle predicts their food costs will remain high in early 2026, particularly for beef, avocados, and oils. Labor costs also saw a rise, reaching 25.5% of fourth-quarter revenue, mainly due to wage inflation and lower sales.
As for expansion, Chipotle opened 132 new restaurants in the fourth quarter, including 97 with drive-through formats. Overall, they now have over 4,000 locations across various countries. Their strategy focuses on growth through innovative menus, technology, and an improved rewards program. Early response to new high-protein menu items has been positive.
For 2026, Chipotle estimates that comparable restaurant sales will remain steady, aiming to open between 350 and 370 new locations. Their net income for 2025 was approximately $1.54 billion, which is stable compared to the previous year. They invested $2.4 billion in stock repurchases, showing confidence in their future.
As of recent trends, fast-casual dining remains popular. Many consumers are opting for quick yet quality food options, which may benefit Chipotle as they invest in technology and menu variety. The company’s ability to adapt to changing tastes and economic pressures will be crucial in the coming year.
For further insights into the food industry’s challenges and trends, you can explore this recent report by the National Restaurant Association.
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Chipotle, Beef Inflation, Restaurant Earnings
