Chipotle Mexican Grill(US:CMG)2026-02-04 21:51Revenue Performance - Total revenue increased by 5.4% to $11.9 billion for the year ended December 31, 2025[112]. - Comparable restaurant sales decreased by 1.7%, attributed to a 2.9% decline in transactions, partially offset by a 1.2% increase in average check[110]. - Digital sales accounted for 36.7% of total food and beverage revenue[110]. Restaurant Expansion - The company opened 334 new company-owned restaurants in 2025, including 257 with a Chipotlane, and plans to open approximately 350 to 370 restaurants in 2026[111]. Cost Analysis - Labor costs rose by 7.2% to $2.99 billion, representing 25.1% of total revenue, influenced by lower sales volumes and wage inflation[121]. - Food, beverage, and packaging costs increased by 4.5% to $3.53 billion, making up 29.6% of total revenue, with a 0.2% decrease as a percentage of total revenue due to menu price increases[119]. - Occupancy costs increased by 10.9% to $624.9 million, representing 5.2% of total revenue, primarily due to lower sales volumes[122]. - Other operating costs rose by 11.9% to $1.76 billion, accounting for 14.7% of total revenue, driven by higher marketing expenses and inflation[123]. - General and administrative expenses decreased by 6.5% to $652 million, representing 5.5% of total revenue[124]. Future Outlook - For 2026, management anticipates comparable restaurant sales to be about flat[110]. - The company expects to incur approximately $531.8 million in capital expenditures related to new restaurant construction in 2026[135]. Depreciation and Amortization - Depreciation and amortization for the year ended December 31, 2025, was $361.4 million, an increase of 7.9% from $335.0 million in 2024, remaining flat at 3.0% of total revenue[126]. Income and Taxes - Interest and other income, net decreased by 21.5% to $73.7 million in 2025 from $93.9 million in 2024, representing 0.6% of total revenue[127]. - Provision for income taxes was $473.8 million in 2025, a slight decrease of 0.5% from $476.1 million in 2024, with an effective income tax rate of 23.6%[128]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $2.1 billion for the year ended December 31, 2025, unchanged from 2024[137]. - Cash used in investing activities decreased significantly to $35.1 million in 2025 from $837.5 million in 2024, primarily due to a decrease in investment purchases[138]. - Cash used in financing activities increased to $2.5 billion in 2025 from $1.1 billion in 2024, mainly due to increased repurchases of common stock by $1.4 billion[139]. - Total capital expenditures for 2025 were $666.3 million, with an expected increase to approximately $834.1 million in 2026[135]. - As of December 31, 2025, the company had a cash and marketable investments balance of $1.1 billion and $1.7 billion available for share repurchases[131]. - The company had $500.0 million of undrawn borrowing capacity under a revolving credit facility as of December 31, 2025[132].