Chipotle Mexican Grill Inc (NYSE:CMG) reported quarterly earnings and revenue that modestly exceeded Wall Street expectations, but the fast casual Mexican chain said restaurant traffic continued to decline and projected flat same-store sales growth for 2026.
The company posted adjusted earnings of $0.25 per share for the fourth quarter, slightly above the $0.24 consensus estimate.
Revenue came in at $2.98 billion, compared with expectations of $2.96 billion.
Comparable restaurant sales fell 2.5% in the quarter, marking the fourth consecutive period of declining traffic.
For the full year 2025, Chipotle reported total revenue of $11.9 billion, up 5.4% from the prior year. However, comparable restaurant sales declined 1.7%, the company’s first annual same-store sales drop since 2016.
Chipotle opened 132 company-owned restaurants in the fourth quarter, including 97 locations with a Chipotlane drive-thru format, and seven international partner-operated restaurants.
For the full year, the company opened 334 company-owned locations and 11 international partner-operated restaurants.
Looking ahead, Chipotle said it expects flat comparable restaurant sales growth in 2026, signaling that recent traffic challenges may persist.
The company also introduced its “Recipe for Growth” strategy, aimed at increasing transactions and improving accuracy, efficiency, and speed across operations.
Chipotle CEO Scott Boatwright said the company delivered record restaurant openings and revenue growth in 2025 despite a “dynamic consumer backdrop.” "This momentum will fuel our next phase of growth, driven by our 'Recipe for Growth' strategy which leans into what uniquely differentiates our brand to accelerate transactions and expand our footprint globally.”
Shares of Chipotle traded up 0.9% at about $39 post-earnings.