Financial Data and Key Metrics Changes - For the full year 2025, revenue grew 5.4% year-over-year, despite a 1.7% decline in comparable sales [4] - Adjusted diluted earnings per share increased by 4.5% year-over-year to $1.17 [4] - In Q4, sales grew 4.9% to reach $3 billion, with a comparable sales decline of 2.5% [25] Business Line Data and Key Metrics Changes - The company opened a record 334 new company-owned restaurants and 11 international partner-operated restaurants in 2025 [4] - Digital sales accounted for 37.2% of total sales in Q4 [25] - Restaurant-level margin was 23.4%, down 140 basis points year-over-year [25] Market Data and Key Metrics Changes - The company anticipates full-year comparable restaurant sales to be about flat for 2026, reflecting a conservative approach due to evolving consumer dynamics [26] - The company opened 132 new restaurants in Q4, including 97 Chipotles and 7 partner-operated restaurants [26] Company Strategy and Development Direction - The company is focusing on five key strategies for growth: operational excellence, brand messaging evolution, business model modernization, global expansion, and talent cultivation [8] - The company aims to solidify its foundation through a focus on operational and culinary excellence, with plans to roll out high-efficiency equipment to improve restaurant performance [9] - The company plans to increase menu innovation cadence to four limited-time offers in 2026 to drive demand [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy and noted that 2025 was a year of progress and resilience despite a challenging consumer backdrop [4] - The management highlighted the importance of adapting to consumer trends, particularly the focus on value and quality [5] - Management acknowledged the impact of the recent winter storm on operations but emphasized the company's ability to respond effectively [5] Other Important Information - The company ended the quarter with $1.3 billion in cash and no debt, and it authorized an additional $1.8 billion for share repurchases [33] - The company experienced a significant increase in active rewards program members, reaching over 21 million [16] Q&A Session All Questions and Answers Question: Can you help us understand the components of the guidance for about flat comps for sales? - Management noted that the full-year guidance reflects a conservative approach due to unpredictable consumer trends, with expectations for improved comps throughout the year as initiatives drive transactions [38][39] Question: Can you provide quantification on the increased throughput from the high-efficiency package? - Management reported hundreds of basis points of improvement in comp sales at restaurants with the new equipment and confirmed plans to accelerate the rollout [40] Question: How are you thinking about limited-time offers (LTOs) and their marketing? - Management indicated that they will increase marketing spend to support four standalone LTOs and will evolve the messaging to better highlight Chipotle's unique offerings [46] Question: What is the margin outlook for the full year given the pricing and inflation dynamics? - Management expects margins to be under pressure in 2026 due to investments in pricing strategies, but they anticipate a recovery towards the end of the year [59][60]

Financial Data and Key Metrics Changes - For the full year 2025, revenue grew 5.4% year-over-year, despite a 1.7% decline in comparable sales [4] - Adjusted diluted earnings per share increased by 4.5% year-over-year to $1.17 [4] - In Q4, sales grew 4.9% to reach $3 billion, with a comparable sales decline of 2.5% [25] - Restaurant-level margin was 23.4%, down 140 basis points year-over-year [25] - Digital sales accounted for 37.2% of total sales [25] Business Line Data and Key Metrics Changes - The company opened a record 334 new company-owned restaurants and 11 international partner-operated restaurants in 2025 [4] - 132 new restaurants were opened in Q4, including 97 Chipotles and 7 partner-operated restaurants [25] - The rollout of high-efficiency equipment is expected to improve speed and consistency, with 350 restaurants currently equipped and a target of 2,000 by year-end [10][40] Market Data and Key Metrics Changes - The company is experiencing a dynamic consumer backdrop, with guests focusing more on value and quality [5] - In Canada, the company opened 21 restaurants, marking a 38% year-over-year increase [17] - The company plans to expand its footprint in the Middle East, with plans to nearly double its presence in 2026 [19] Company Strategy and Development Direction - The company aims to protect and strengthen its core by driving operational and culinary excellence [8] - Key strategies include modernizing the business model with technology, expanding global reach, and cultivating talent [8] - The company is focusing on menu innovation and increasing the frequency of limited-time offers to drive demand [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy and noted that 2025 was a year of progress and resilience [4] - The company anticipates a flat comparable restaurant sales for the full year 2026, with a cautious approach due to evolving consumer dynamics [26] - Management highlighted the importance of operational excellence and culinary quality in meeting future demand [9] Other Important Information - The company has a strong balance sheet with $1.3 billion in cash and no debt [33] - A record $2.4 billion was spent on stock repurchases in 2025, with an additional $1.8 billion authorized for future buybacks [33] Q&A Session Summary Question: Guidance for flat comps for sales - Management indicated that the full-year guidance reflects a conservative approach due to unpredictable consumer trends, with expectations for improvement as initiatives take effect [38] Question: High-efficiency package impact on comp sales - Management reported hundreds of basis points of improvement in comp sales at restaurants with the new equipment, with plans to accelerate the rollout [40] Question: Limited-time offers (LTO) marketing strategy - Management confirmed that LTOs have a higher lifetime value for customers and emphasized a more robust marketing strategy to support these offerings [46] Question: Margin outlook with flat comps - Management expects margins to be under pressure in 2026 due to pricing strategies and inflation, but anticipates recovery by year-end [62] Question: Development levels in North America - Management confirmed plans to open 350 new restaurants in 2026, maintaining confidence in growth rates and returns [81]