Operations

Chipotle reports flat comps, lower profit in Q2

Photo: Chipotle

July 23, 2025

A slowdown in consumer spending and weather incidents that led to Chipotle's dismal Q1 performance intensified in Q2 as it reported flat comparable restaurant sales and a decline in net income, even as total revenue increased due to restaurant openings.

The fast casual chain posted total revenue of $3.1 billion, up 3% from the same period last year. However, comparable restaurant sales decreased 4%, driven by a 4.9% decline in transactions, partially offset by a 0.9% increase in average check.

Net income for the quarter was $436.1 million, or $0.32 per diluted share, down from $455.7 million, or $0.33 per diluted share, in the second quarter of 2024. Adjusted net income also saw a slight decline. Restaurant-level margin decreased by 150 basis points to 27.4%.

CEO Scott Boatwright acknowledged a slowdown in May but noted a return to positive comparable sales and transaction trends in June, continuing into July.

"We are seeing momentum build as we rolled out our summer marketing initiatives and as our comparisons ease," Boatwright said during an earnings call.

Chipotle opened 61 company-owned restaurants during the quarter, with 47 of them featuring a Chipotlane drive-thru. Digital sales accounted for 35.5% of total food and beverage revenue.

Despite the slight EPS beat, the miss on revenue and the decline in comparable sales and lowered full-year guidance led to a negative reaction from investors. The chin's stock dropped over 10% in after-hours trading immediately following the announcement, reflecting investor worries about slowing customer traffic and the company's ability to maintain growth amidst economic uncertainty.

Looking ahead, Chipotle revised its full-year guidance, anticipating about flat full-year comparable restaurant sales.