CHIPOTLE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Core Insights - Chipotle Mexican Grill launched its "Recipe for Growth" strategy aimed at enhancing transactions and improving operational efficiency, accuracy, and speed [4][19] - The company reported a total revenue increase of 5.4% to $11.9 billion for the full year 2025, driven primarily by new restaurant openings [8][12] Fourth Quarter Highlights - Total revenue for Q4 2025 was $3.0 billion, a 4.9% increase from Q4 2024, supported by new restaurant openings and a gift card breakage revenue of $27.0 million [5][8] - Comparable restaurant sales decreased by 2.5%, attributed to a 3.2% drop in transactions, although there was a 0.7% increase in average check [5][12] - Digital sales accounted for 37.2% of total food and beverage revenue [5] Full Year Highlights - For the full year 2025, comparable restaurant sales decreased by 1.7%, with a 2.9% decline in transactions offset by a 1.2% increase in average check [12][16] - The operating margin for the full year was 16.2%, down from 16.9% in 2024 [8][16] - Net income for 2025 was $1.54 billion, or $1.14 per diluted share, compared to $1.53 billion, or $1.11 per diluted share in 2024 [16][28] Restaurant Expansion - In 2025, Chipotle opened 334 company-owned restaurants, including 257 with a Chipotlane, and 11 international partner-operated restaurants [8][13] - As of December 31, 2025, Chipotle operated a total of 4,056 restaurants globally [13] Cost Management - Food, beverage, and packaging costs were 29.6% of total revenue for 2025, a decrease from 29.8% in 2024, primarily due to menu price increases and cost efficiencies [14][28] - Labor costs increased to 25.1% of total revenue, up from 24.7% in 2024, mainly due to lower sales volumes and wage inflation [15][28] Share Repurchase Program - During 2025, Chipotle repurchased $2.4 billion of stock at an average price of $42.54 per share [11][17] Future Outlook - For 2026, management anticipates comparable restaurant sales to be about flat and plans to open 350 to 370 new restaurants, including 10 to 15 international partner-operated locations [22][20]