Chipotle Mexican Grill, Inc. CMG reported third-quarter 2025 outcomes, with earnings beating the Zacks Consensus Estimate and revenues lacking the identical. Each high and backside traces elevated 12 months over 12 months.
Chipotle inventory sank 16.2% after hours as traders reacted to comfortable site visitors traits and a cautious outlook. Administration flagged a notable shift from decrease to middle-income diners, who account for about 40% of gross sales, citing inflation, weak wage development and pupil mortgage repayments. Steering for low to mid-single-digit comp declines in fourth-quarter 2025 and margin stress in 2026, attributable to rising beef prices and tariffs that won’t be totally offset by pricing, fueled considerations about slowing development regardless of menu innovation and enlargement plans.
CMG’s Q3 Earnings & Income Dialogue
For the quarter beneath evaluate, CMG reported adjusted earnings per share (EPS) of 29 cents, beating the Zacks Consensus Estimate of 28 cents. The underside line rose 7.4% from 27 cents reported within the year-ago quarter.
Quarterly revenues of $3 billion missed the consensus mark of $3.02 billion by 0.5%. Nevertheless, the highest line rose 7.5% on a year-over-year foundation. This upside was pushed by new restaurant openings and a rise in comparable restaurant gross sales.
Comparable restaurant gross sales within the third quarter rose 0.3% in contrast with a 6% development reported within the prior-year quarter. Through the quarter, comps had been aided by a 1.1% improve in common verify, marginally overshadowed by decrease transactions of 0.8%.
Through the third quarter, digital gross sales contributed 36.7% to whole meals and beverage revenues.
Chipotle Mexican Grill, Inc. Worth, Consensus and EPS Shock
Chipotle Mexican Grill, Inc. price-consensus-eps-surprise-chart | Chipotle Mexican Grill, Inc. Quote
Chipotle’s Restaurant Openings
Power in new restaurant openings aided the corporate’s efficiency within the third quarter. Within the reported quarter, Chipotle opened 84 company-owned eating places, with 64 that includes a Chipotlane.
CMG’s Prices, Working Highlights & Web Revenue
Within the third quarter of 2025, meals, beverage and packaging prices, as a proportion of revenues, got here in at 30% in contrast with 30.6% reported within the prior-year quarter. This was because of menu value will increase carried out in 2024 and enhanced cost-of-sales efficiencies. Nevertheless, it was partially offset by inflation, significantly in beef and rooster, in addition to the impression of newly imposed tariffs. We anticipated the metric to be 29.9%.
Within the quarter beneath dialogue, the restaurant-level working margin reached 24.5%, down from 25.5% reported within the prior-year interval. We predicted the metric to be 25.3%.
Adjusted internet earnings within the reported quarter amounted to $389.9 million in contrast with $366.6 million reported within the prior-year quarter. Our estimate for the metric was $403 million.
Stability Sheet of Chipotle
As of Sept. 30, 2025, the corporate reported money and money equivalents of $698.7 million in contrast with $748.5 million as of Dec. 31, 2024.
Stock totaled $46.4 million as of Sept. 30, 2025, in contrast with $48.9 million as of Dec. 31, 2024.
CMG’s 2025 Outlook
For 2025, administration anticipates comparable gross sales to say no within the low-single digit vary in contrast with the prior estimate of roughly flat.
CMG expects to open between 315 and 345 new company-operated eating places in 2025, with greater than 80% that includes a Chipotlane. It expects a tax price within the vary of 25-27% in 2025.
CMG’s Zacks Rank & Key Picks
Chipotle at present has a Zacks Rank #4 (Promote).
Some better-ranked shares within the Zacks Retail-Wholesale sector are Purple Robin Connoisseur Burgers, Inc. RRGB, Dutch Bros Inc. BROS and First Watch Restaurant Group, Inc. FWRG.
Purple Robin at present sports activities a Zacks Rank #1 (Sturdy Purchase). You possibly can see the entire checklist of right now’s Zacks #1 Rank shares right here.
Purple Robin has gained 22.2% within the year-to-date interval. The Zacks Consensus Estimate for Purple Robin’s fiscal 2025 gross sales signifies a decline of two.8% 12 months over 12 months, whereas EPS implies an increase of 82% from the year-ago interval’s ranges.
Dutch Bros presently carries a Zacks Rank #2 (Purchase). The inventory has gained 10.4% within the year-to-date interval.
The Zacks Consensus Estimate for BROS’ 2026 gross sales and EPS implies development of 23.8% and 29.7%, respectively, from the year-ago ranges.
First Watch Restaurant presently carries a Zacks Rank #2. The inventory has declined 8.3% within the year-to-date interval.
The Zacks Consensus Estimate for First Watch Restaurant’s 2026 gross sales and EPS point out a rise of 14.8% and 108.3%, respectively, from the year-ago ranges.
Zacks’ Analysis Chief Picks Inventory Most Prone to “At Least Double”
Our specialists have revealed their High 5 suggestions with money-doubling potential – and Director of Analysis Sheraz Mian believes one is superior to the others. After all, all our picks aren’t winners however this one might far surpass earlier suggestions like Hims & Hers Well being, which shot up +209%.
See Our High Inventory to Double (Plus 4 Runners Up) >>
Chipotle Mexican Grill, Inc. (CMG) : Free Inventory Evaluation Report
Purple Robin Connoisseur Burgers, Inc. (RRGB) : Free Inventory Evaluation Report
Dutch Bros Inc. (BROS) : Free Inventory Evaluation Report
First Watch Restaurant Group, Inc. (FWRG) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
