Chipotle posts full-year revenue increase as beef and chicken inflation pressures margins

Chipotle Mexican Grill has reported full-year 2025 revenue of US$11.9 billion, up 5.4% year-on-year, driven by a record 334 new restaurant openings despite a 1.7% decline in comparable restaurant sales. The fast-casual chain flagged ongoing inflation in beef and chicken costs and the impact of 2025 tariffs as key headwinds, while food, beverage, and packaging costs dipped slightly to 29.6% of total revenue.

Fourth quarter revenue rose 4.9% to US$3 billion, though comparable sales fell 2.5% as customer transactions dropped 3.2%, only partially offset by a 0.7% increase in average check size. Digital sales accounted for 37.2% of food and beverage revenue in the quarter. 

“Through our proven business model, prudent investments in operational excellence, and the support of a strong balance sheet, 2025 was a year of progress and resilience for Chipotle,” says CEO Scott Boatwright. “Against a dynamic consumer backdrop, we opened a record number of restaurants globally and grew Q4 and full-year revenue.”

Ingredient cost pressures and tariff impacts

Food, beverage, and packaging costs in Q4 came in at 30.2% of total revenue, marginally down from 30.4% a year earlier. The company attributed the slight improvement to menu price increases, lower dairy costs, and cost-of-sales efficiencies, but noted these gains were partially eroded by inflation in beef and chicken, alongside the impact of tariffs enacted during 2025.

On a full-year basis, food costs fell to 29.6% from 29.8%, following the same pattern of pricing benefits being offset by protein inflation and tariff-related pressures. For Q1 2026, Chipotle expects cost of sales in the mid-30% range, reflecting higher costs for beef, avocados, and oils, partially offset by pricing actions and lower tariffs.

Labor costs ticked up to 25.5% of Q4 revenue from 25.2% a year ago, driven by lower sales volumes and wage inflation. Full-year labor costs rose to 25.1% from 24.7% in 2024.

Chipotle expansion and 2026 outlook

The company opened 132 company-owned restaurants in Q4, of which 97 included a Chipotlane drive-through format, alongside seven international partner-operated locations. 

Full-year openings totaled 334 company-owned and 11 partner-operated restaurants, bringing the total estate to 4,056 locations across the US, Canada, the UK, France, Germany, and the Middle East.

Chipotle has outlined a “Recipe for Growth” strategy focused on driving transactions through menu innovation, technology investments, including AI, a revamped rewards program, and global expansion. The company cited early success with its high-protein menu offerings and new equipment packages designed to improve efficiency.

“At the center of our strategy is the strength and relevance of our brand and our unwavering commitment to sourcing the best ingredients,” says Boatwright. “We are confident in the opportunity ahead and our ability to delight guests and deliver value for shareholders.”

For 2026, management is guiding for roughly flat comparable restaurant sales and between 350 and 370 new restaurant openings. Net income for 2025 came in at US$1.54 billion, or US$1.14 per diluted share, essentially flat compared to the prior year. The company repurchased US$2.4 billion of stock during the year at an average price of US$42.54 per share.