We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chipotle Q2 Earnings Top, Revenues Lag Estimates, Stock Down
Read MoreHide Full Article
Key Takeaways
Chipotle posted Q2 EPS of $0.33, topping estimates but down 2.9% year over year on margin compression.
CMG's revenues grew 3% Y/Y on new restaurant growth, though it missed consensus estimates.
CMG opened 61 new locations and expects 315-345 openings in 2025, with over 80% featuring a Chipotlane.
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported second-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure.
Following the results, the company's shares fell 10.6% in the after-hours trading session yesterday. Negative investor sentiments were witnessed as management highlighted weakening consumer confidence and lowered its full-year 2025 comparable sales outlook. The revenue miss, coupled with margin compression and cautious commentary on macro headwinds, further weighed on investor confidence.
CMG’s Q2 Earnings & Revenue Discussion
For the quarter under review, CMG reported adjusted earnings per share (EPS) of 33 cents, beating the Zacks Consensus Estimate of 32 cents. The bottom line fell 2.9% from 34 cents reported in the year-ago quarter.
Quarterly revenues of $3.06 billion missed the consensus mark of $3.1 billion by 1.2%. However, the top line rose 3% on a year-over-year basis. This upside was driven by new restaurant openings.
Chipotle Mexican Grill, Inc. Price, Consensus and EPS Surprise
Comparable restaurant sales in the second quarter fell 4% against 11.1% growth reported in the prior-year quarter. During the quarter, comps were hurt by lower transactions of 4.9%. However, this was partially mitigated by a 0.9% rise in average checks.
During the second quarter, digital sales contributed 35.5% to total food and beverage revenues.
Chipotle’s Restaurant Openings
Strength in new restaurant openings aided the company’s performance in the second quarter. In the reported quarter, Chipotle opened 61 company-owned restaurants, with 47 featuring a Chipotlane. The company reported strong performance of Chipotlanes, contributing to higher sales, better margins and stronger returns at new locations.
CMG’s Costs, Operating Highlights & Net Income
In the second quarter of 2025, food, beverage and packaging costs, as a percentage of revenues, came in at 28.9%, compared with 29.4% reported in the prior-year quarter. The improvement was driven by menu price increases implemented in 2024 and enhanced cost-of-sales efficiencies. This was partly offset by inflation across ingredient costs, primarily steak and chicken. We expected the metric to be 29.9%.
In the quarter under discussion, the restaurant-level operating margin reached 27.4%, down from 28.9% reported in the prior-year period. We predicted the metric to be 26.7%.
Adjusted net income in the reported quarter amounted to $450.4 million, compared with $463 million reported in the prior-year quarter. Our estimate for the metric was $387.6 million.
Balance Sheet of Chipotle
As of June 30, 2025, the company reported cash and cash equivalents of $844.5 million compared with $748.5 million as of Dec. 31, 2024.
As of June 30, 2025, inventory totaled $40.4 million compared with $48.9 million as of Dec. 31, 2024.
CMG’s 2025 Outlook
For 2025, management anticipates comparable sales to remain roughly flat, down from the earlier projection of low-single-digit growth. It expects to open between 315 and 345 new company-operated restaurants in 2025, with more than 80% featuring a Chipotlane. It expects a tax rate in the range of 25-27% in 2025.
Cracker Barrel has gained 35.9% in the year-to-date period. The Zacks Consensus Estimate for Cracker Barrel’s fiscal 2026 sales and EPS indicates growth of 1.8% and 9.4%, respectively, from the year-ago period’s levels.
Portillo's presently carries a Zacks Rank #2 (Buy). The stock has gained 22.1% in the year-to-date period.
The Zacks Consensus Estimate for Portillo's 2026 sales and EPS implies growth of 14.4% and 27.8%, respectively, from the year-ago levels.
Yum! Brands presently carries a Zacks Rank #2. The stock has gained 10.2% in the year-to-date period.
The Zacks Consensus Estimate for Yum! Brands’ 2025 sales and EPS indicates an increase of 6.9% and 10%, respectively, from the year-ago levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Chipotle Q2 Earnings Top, Revenues Lag Estimates, Stock Down
Key Takeaways
Chipotle Mexican Grill, Inc. (CMG - Free Report) reported second-quarter 2025 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure.
Following the results, the company's shares fell 10.6% in the after-hours trading session yesterday. Negative investor sentiments were witnessed as management highlighted weakening consumer confidence and lowered its full-year 2025 comparable sales outlook. The revenue miss, coupled with margin compression and cautious commentary on macro headwinds, further weighed on investor confidence.
CMG’s Q2 Earnings & Revenue Discussion
For the quarter under review, CMG reported adjusted earnings per share (EPS) of 33 cents, beating the Zacks Consensus Estimate of 32 cents. The bottom line fell 2.9% from 34 cents reported in the year-ago quarter.
Quarterly revenues of $3.06 billion missed the consensus mark of $3.1 billion by 1.2%. However, the top line rose 3% on a year-over-year basis. This upside was driven by new restaurant openings.
Chipotle Mexican Grill, Inc. Price, Consensus and EPS Surprise
Chipotle Mexican Grill, Inc. price-consensus-eps-surprise-chart | Chipotle Mexican Grill, Inc. Quote
Comparable restaurant sales in the second quarter fell 4% against 11.1% growth reported in the prior-year quarter. During the quarter, comps were hurt by lower transactions of 4.9%. However, this was partially mitigated by a 0.9% rise in average checks.
During the second quarter, digital sales contributed 35.5% to total food and beverage revenues.
Chipotle’s Restaurant Openings
Strength in new restaurant openings aided the company’s performance in the second quarter. In the reported quarter, Chipotle opened 61 company-owned restaurants, with 47 featuring a Chipotlane. The company reported strong performance of Chipotlanes, contributing to higher sales, better margins and stronger returns at new locations.
CMG’s Costs, Operating Highlights & Net Income
In the second quarter of 2025, food, beverage and packaging costs, as a percentage of revenues, came in at 28.9%, compared with 29.4% reported in the prior-year quarter. The improvement was driven by menu price increases implemented in 2024 and enhanced cost-of-sales efficiencies. This was partly offset by inflation across ingredient costs, primarily steak and chicken. We expected the metric to be 29.9%.
In the quarter under discussion, the restaurant-level operating margin reached 27.4%, down from 28.9% reported in the prior-year period. We predicted the metric to be 26.7%.
Adjusted net income in the reported quarter amounted to $450.4 million, compared with $463 million reported in the prior-year quarter. Our estimate for the metric was $387.6 million.
Balance Sheet of Chipotle
As of June 30, 2025, the company reported cash and cash equivalents of $844.5 million compared with $748.5 million as of Dec. 31, 2024.
As of June 30, 2025, inventory totaled $40.4 million compared with $48.9 million as of Dec. 31, 2024.
CMG’s 2025 Outlook
For 2025, management anticipates comparable sales to remain roughly flat, down from the earlier projection of low-single-digit growth. It expects to open between 315 and 345 new company-operated restaurants in 2025, with more than 80% featuring a Chipotlane. It expects a tax rate in the range of 25-27% in 2025.
CMG’s Zacks Rank & Key Picks
Chipotle currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) , Portillo's Inc. (PTLO - Free Report) and Yum! Brands, Inc. (YUM - Free Report) .
Cracker Barrel currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cracker Barrel has gained 35.9% in the year-to-date period. The Zacks Consensus Estimate for Cracker Barrel’s fiscal 2026 sales and EPS indicates growth of 1.8% and 9.4%, respectively, from the year-ago period’s levels.
Portillo's presently carries a Zacks Rank #2 (Buy). The stock has gained 22.1% in the year-to-date period.
The Zacks Consensus Estimate for Portillo's 2026 sales and EPS implies growth of 14.4% and 27.8%, respectively, from the year-ago levels.
Yum! Brands presently carries a Zacks Rank #2. The stock has gained 10.2% in the year-to-date period.
The Zacks Consensus Estimate for Yum! Brands’ 2025 sales and EPS indicates an increase of 6.9% and 10%, respectively, from the year-ago levels.