CHIPOTLE ANNOUNCES SECOND QUARTER 2025 RESULTS

Core Insights - Chipotle Mexican Grill reported a total revenue of $3.1 billion for Q2 2025, marking a 3.0% increase year-over-year, driven primarily by new restaurant openings [4][12] - Comparable restaurant sales decreased by 4.0%, attributed to a 4.9% decline in transactions, although there was a 0.9% increase in average check [4][12] - Digital sales accounted for 35.5% of total food and beverage revenue, indicating a strong performance in online ordering [4] Financial Performance - Net income for Q2 2025 was $436.1 million, or $0.32 per diluted share, compared to $455.7 million, or $0.33 per diluted share in Q2 2024, reflecting a decrease of 3.0% [10][12] - Adjusted net income for Q2 2025 was $450.4 million, or $0.33 per adjusted diluted share, down from $463.0 million, or $0.34 per adjusted diluted share in Q2 2024 [10][12] - The effective income tax rate decreased to 24.5% from 25.0% in the previous year, mainly due to lower non-deductible expenses [9] Cost Structure - Food, beverage, and packaging costs represented 28.9% of total revenue, a decrease from 29.4% in Q2 2024, attributed to menu price increases and cost efficiencies [6] - Labor costs increased to 24.7% of total revenue from 24.1% in Q2 2024, primarily due to lower sales volumes [7] - General and administrative expenses decreased to $172.2 million from $175.0 million in Q2 2024, mainly due to lower performance bonuses and stock-based compensation [8] Expansion and Operations - Chipotle opened 61 company-owned restaurants in Q2 2025, with 47 locations featuring a Chipotlane, which has been beneficial for guest access and sales [5] - The company plans to continue its expansion, with expectations of opening 315 to 345 new company-owned restaurants in 2025, over 80% of which will have a Chipotlane [18] Shareholder Returns - During Q2 2025, Chipotle repurchased $435.9 million of stock at an average price of $50.16 per share, with $838.8 million remaining under share repurchase authorizations [11]