Chipotle Mexican Grill Inc. (NYSE: CMG) released its second-quarter 2025 financial results this week, revealing a 3% year-over-year revenue increase—but also signs of shifting consumer behavior and shrinking group visits.
Revenue rises but operating income and profits decline
In its Form 10-Q filed July 23, Chipotle reported total Q2 revenue of $3.06 billion, up 3.0% from the same period in 2024. This gain was primarily driven by a 0.9% increase in average check size, even as transactions fell by 4.9%.
- Income from operations: $559.1 million, down from Q2 2024 due to increased operating expenses
- Net income: $436.1 million, down from $455.7 million
- Diluted EPS: $0.32, a 3.0% decrease from the previous year
While total revenue ticked upward, rising labor and commodity costs pressured margins. Chipotle’s operational strategy continues to emphasize store expansion—but its profitability took a hit this quarter.
Customers shift from steak to chicken
Consumer preferences are clearly evolving. Chipotle’s CFO Adam Rymer noted during the company’s earnings call that more customers are choosing lower-priced chicken options over premium proteins like steak and barbacoa—choices that typically cost $2 more per entrée.
“There’s also been a little bit of a shift to lower-priced entrées,” Rymer said. “Think of that as your steak and barbacoa customers shifting a little bit more to chicken than we’ve seen in the past.”
That shift aligns with broader industry trends: chicken has overtaken beef as the most popular protein in the U.S., per a 2024 USDA report. Chipotle’s own limited-time honey chicken, launched in March, has proven especially popular—one in every four guests ordered it, according to Rymer.
Store count grows, but same-store sales dip
During Q2, Chipotle opened 61 new restaurants, 47 of which featured “Chipotlanes”—drive-thru lanes designed for digital order pickup. That brings the company’s total to 3,839 locations, including 89 international outlets.
Despite this expansion, same-store sales dropped 4%, driven in part by smaller party sizes and lower foot traffic. This was more than Wall Street expected, sending the stock down nearly 10% in after-hours trading on July 23.
Key numbers from Q2 2025
- Total revenue: $3.06 billion
- Same-store sales: –4.0%
- Number of new stores: 61 (47 with Chipotlanes)
- Net income: $436.1 million
- U.S. revenue: $3.0 billion
Outlook: Flat same-store sales ahead
Looking to the rest of 2025, Chipotle is taking a conservative stance. The company expects comparable restaurant sales to remain flat, focusing instead on increasing Chipotlane adoption to improve convenience and drive-thru efficiency.
With consumer sentiment cooling and cost pressures continuing, Chipotle appears to be prioritizing long-term customer accessibility over short-term profitability.
What happens next?
Chipotle’s challenges mirror a broader industry trend: shifting consumer habits and rising costs are forcing fast-casual chains to adapt. For Chipotle, the strategic focus on drive-thru growth, affordable protein options, and digital order optimization may offer stability in a volatile market.
Investors and analysts will be watching closely in Q3 to see whether the company’s menu innovations and real estate bets can reverse declining in-store traffic and offset pressure on margins.
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