CHIPOTLE ANNOUNCES FIRST QUARTER 2025 RESULTS

Core Insights - Chipotle Mexican Grill reported a total revenue of $2.9 billion for the first quarter of 2025, marking a 6.4% increase year-over-year, primarily driven by new restaurant openings [4][10] - Comparable restaurant sales decreased by 0.4%, attributed to a 2.3% decline in transactions, which was partially offset by a 1.9% increase in average check [4][10] - The company opened 57 new company-owned restaurants during the quarter, with 48 featuring a Chipotlane, enhancing customer access and convenience [5][10] Financial Performance - Net income for the first quarter of 2025 was $386.6 million, or $0.28 per diluted share, compared to $359.3 million, or $0.262 per diluted share in the same period of 2024, reflecting a 7.7% increase [10][21] - Adjusted net income for the first quarter was $396.8 million, or $0.29 per adjusted diluted share, up from $369.3 million, or $0.272 per adjusted diluted share in the prior year [10][30] - The effective income tax rate increased to 22.9% from 22.0% year-over-year, primarily due to reduced tax benefits related to option exercises and equity vesting [9][10] Cost Structure - Food, beverage, and packaging costs represented 29.2% of total revenue, up from 28.8% in the first quarter of 2024, driven by inflation and increased usage of key ingredients [6][10] - Labor costs accounted for 25.0% of total revenue, an increase from 24.4% in the previous year, mainly due to lower sales volumes and wage inflation [7][10] - General and administrative expenses decreased to $172.8 million from $204.6 million year-over-year, attributed to lower conference expenses and legal reserves [8][10] Operational Highlights - Digital sales constituted 35.4% of total food and beverage revenue, indicating a strong performance in online ordering and delivery [4][10] - The company anticipates opening between 315 to 345 new company-owned restaurants in 2025, with over 80% expected to include a Chipotlane [17] - Chipotle aims to achieve full-year comparable restaurant sales growth in the low single-digit range [17]