Chipotle Mexican Grill Inc【CMG】株式ニュース

CHIPOTLE ANNOUNCES FIRST QUARTER 2026 RESULTSApril 29, 2026 4:33 PM
PR Newswire (US)

RETURN TO POSITIVE TRANSACTIONS DRIVES 0.5% COMPARABLE RESTAURANT SALES GROWTH; REVENUE INCREASES 7.4% TO $3.1 BILLIONNEWPORT BEACH, Calif., April 29, 2026 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its first quarter ended March 31, 2026.First quarter highlights, year over year: Total revenue increased 7.4% to $3.1 billionComparable restaurant sales increased 0.5%Operating margin was 12.9%, a decrease from 16.7%Adjusted restaurant level operating margin1 was 23.7%, a decrease from 26.2%Diluted earnings per share was $0.23, a 17.9% decrease from $0.28Adjusted diluted earnings per share1 was $0.24, a 17.2% decrease from $0.29Opened 49 company-owned restaurants, with 42 locations including a Chipotlane."Our first quarter exceeded expectations as we advanced our Recipe for Growth strategy, delivering tangible progress across operations, digital, menu innovation, people, and development," said Scott Boatwright, Chief Executive Officer, Chipotle. "We are excited to welcome a new Chief Brand Officer and a new Chief Digital Officer to further strengthen our value proposition, sharpen our brand messaging, and accelerate innovation—positioning Chipotle for sustained, long-term growth as we advance on our path to becoming a global iconic brand."Results for the three months ended March 31, 2026: Total revenue in the first quarter of 2026 was $3.1 billion, an increase of 7.4% compared to the first quarter of 2025. The increase was driven by new restaurant openings and, to a lesser extent, a 0.5% increase in comparable restaurant sales due to higher transactions of 0.6%, partially offset by a 0.1% decrease in average check. Digital sales represented 38.6% of total food and beverage revenue.During the first quarter we opened 49 company-owned restaurants, of which 42 included a Chipotlane. Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns.Food, beverage and packaging costs in the first quarter of 2026 were 29.6% of total revenue, an increase from 29.2% in the first quarter of 2025. The increase was driven by inflation, primarily in beef and freight, and higher produce usage. These increases were partially offset by lower dairy and avocado costs, and the benefit of menu price increases.Labor costs in the first quarter of 2026 were 26.1% of total revenue, an increase from 25.0% in the first quarter of 2025. The increase was primarily driven by wage inflation, lower average restaurant sales volumes, and higher benefits expense, including performance-based bonuses. These headwinds were partially offset by the benefit of menu price increases. Excluding a 40 basis point impact from costs related to certain legal proceedings, adjusted labor costs1 were 25.7% of total revenue, compared to 25.0% in the first quarter of 2025.1Adjusted restaurant level operating margin, adjusted diluted earnings per share, adjusted labor costs, adjusted net income, adjusted general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release. General and administrative expenses for the first quarter of 2026 were $203.7 million, compared to $172.8 million in the first quarter of 2025. The increase was driven by our biennial All Managers Conference held in the first quarter of 2026, performance bonuses and wages, and benefited from lower stock-based compensation. Adjusted general and administrative expenses1 for the first quarter of 2026 were $197.9 million, compared to $160.9 million in the first quarter of 2025.The effective income tax rate for the first quarter of 2026 was 25.4%, an increase from 22.9% in the first quarter of 2025. The increase was driven by a reduction in tax benefits related to option exercises and equity vesting, fewer tax credits, and an increase in other discrete income tax items.Net income for the first quarter of 2026 was $302.8 million, or $0.23 per diluted share, compared to $386.6 million, or $0.28 per diluted share, in the first quarter of 2025. Adjusted net income1 for the first quarter of 2026 was $316.2 million, or $0.24 per adjusted diluted share, compared to $396.8 million, or $0.29 per adjusted diluted share, in the first quarter of 2025.During the first quarter of 2026 we repurchased $700.8 million of stock at an average price per share of $36.14. As of March 31, 2026, $1.0 billion remained available under share repurchase authorizations from our Board of Directors. The repurchase authorization may be modified, suspended or discontinued at any time.More information will be available in our Quarterly Report on Form 10-Q, which will be filed with the SEC in April 2026.OutlookFor 2026, management is anticipating the following:Full year comparable restaurant sales to be about flat350 to 370 new restaurant openings, which includes 10 to 15 international partner-operated restaurants. Around 80% of company-owned restaurants will have a ChipotlaneAn estimated underlying effective full year tax rate between 24% and 26% before discrete itemsDefinitionsThe following definitions apply to these terms as used throughout this release:Comparable restaurant sales, or sales comps, and comparable restaurant transactions, represent the change in period-over-period total revenue or transactions for company-owned restaurants in operation for at least 13 full calendar months.Average restaurant sales refers to the average trailing 12-month food and beverage revenue for company-owned restaurants in operation for at least 12 full calendar months.Restaurant level operating margin represents total revenue less direct restaurant operating costs, expressed as a percent of total revenue.Digital sales represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app or third-party delivery aggregators. Digital sales include revenue deferrals associated with Chipotle Rewards.Partner-operated restaurants - Chipotle restaurants over which Chipotle does not have a controlling financial interest and for which Chipotle does not directly manage day-to-day operations. This includes restaurants operated by third parties pursuant to license or franchise agreements and restaurants in which Chipotle holds a minority, non-controlling ownership interest.Conference Call Details and Supplemental SlidesChipotle will host a conference call on Wednesday, April 29, 2026, at 4:30 PM Eastern time to discuss first quarter 2026 financial results and provide a business update for the second quarter to date. In connection, supplemental slides for the call will be available on the company's website at ir.chipotle.com/presentations.The conference call can be accessed live over the phone by dialing 1-888-317-6003, or for international callers, by dialing 1-412-317-6061 and using code: 1676292. The call will be webcast live on the company's website at ir.chipotle.com/events. An archived webcast will be available approximately one hour after the end of the call.About ChipotleChipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 4,100 restaurants as of March 31, 2026, in the United States, Canada, the United Kingdom, France, Germany, and the Middle East and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. With over 135,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM.Forward-Looking StatementsCertain statements in this press release, in the April 29, 2026, conference call and in the supplemental slides for the call are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under "Outlook" and "Recipe for Growth Strategy," and about our anticipated full year 2026 comparable restaurant sales growth, number of new company-owned and international partner-owned restaurant openings in 2026, expected number of restaurants with Chipotlanes, and estimated underlying effective 2026 full year tax rate, as well as statements about the expected success of our "Recipe for Growth" strategy, our future food, beverage, packaging, labor, general and administrative and other costs, future estimated tax rates and future long-term prospects. We use words such as "anticipate", "believe", "could", "should", "may", "approximately", "estimate", "confident", "assuming", "expect", "intend", "project", "target", "goal" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on currently available operating, financial and competitive information available to us as of the date of this release and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to: wage inflation and state or local regulations mandating higher minimum wages; the competitive labor market, which impacts our ability to attract and retain qualified employees; the impact of any union organizing efforts and our responses to such efforts; increases in ingredient and other operating costs due to inflation, global conflicts, severe weather, our Food with Integrity philosophy, tariffs or trade restrictions; intermittent supply shortages relating to our Food with Integrity philosophy, rapid expansion and supply chain disruptions; risks of food safety incidents and food-borne illnesses; our reliance on certain information technology systems and potential material failures, interruptions or outages; risks that our investments in new technology and technological innovations may not generate returns; privacy and cyber security risks, including breaches, unauthorized access, theft, modification, destruction or ransom of guest or employee personal or confidential information stored on our network or the network of third party providers; the impact of competition, including from sources outside the restaurant industry; the impact of government regulations relating to our employees, employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites, construction materials and contractors and restaurant equipment; the expected costs and risks related to our international expansion, including through partner-operated restaurants in the Middle East, Asia and Mexico; our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in guests' perceptions of our brand, including as a result of negative publicity or social media posts and decreased consumer spending, or the inability to increase menu prices or realize the benefits of menu price increases; failure to meet market expectations for our financial performance or any announced guidance and the impact thereof; the potential impact of activist shareholder actions or tactics; failure to attract or retain key executive talent; the impact of our brand, marketing, promotional, advertising and pricing strategies, digital platform and menu innovations; our reliance on third party delivery services and the IT infrastructure; litigation risks, including possible governmental actions and potential class action litigation related to food safety incidents, cybersecurity incidents, employment or privacy laws, advertising claims, contract disputes or other matters. In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and macroeconomic environment. These statements also are subject to other risk factors described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com. CHIPOTLE MEXICAN GRILL, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data)(unaudited)
Three months ended March 31,
2026
2025Food and beverage revenue$    3,072,730
99.5 %
$    2,859,831
99.5 %Delivery service revenue15,512
0.5
15,422
0.5Total revenue3,088,242
100.0
2,875,253
100.0Restaurant operating costs (exclusive of depreciation and amortization shown separately below):

Food, beverage and packaging913,346
29.6
838,403
29.2Labor805,411
26.1
718,226
25.0Occupancy169,881
5.5
149,841
5.2Other operating costs480,643
15.6
415,161
14.4General and administrative expenses203,720
6.6
172,783
6.0Depreciation and amortization96,718
3.1
87,211
3.0Pre-opening costs11,641
0.4
8,210
0.3Impairment, closure costs, and asset disposals9,819
0.3
6,168
0.2Total operating expenses2,691,179
87.1
2,396,003
83.3Income from operations397,063
12.9
479,250
16.7Interest and other income, net8,742
0.3
22,253
0.8Income before income taxes405,805
13.1
501,503
17.4Provision for income taxes102,981
3.3
114,904
4.0Net income$      302,824
9.8 %
$      386,599
13.4 %Earnings per share:

Basic$          0.23

$          0.29

Diluted$          0.23

$          0.28

Weighted-average common shares outstanding:

Basic1,298,220

1,354,518

Diluted1,301,859

1,360,719

CHIPOTLE MEXICAN GRILL, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except per share data)
March 31,
2026
December 31,
2025
(unaudited)

Assets

Current assets:

Cash and cash equivalents$       246,636
$       350,545Accounts receivable, net94,934
156,466Inventory44,685
49,508Prepaid expenses and other current assets126,278
120,450Income tax receivable-
91,393Investments624,786
698,591Total current assets1,137,319
1,466,953Leasehold improvements, property and equipment, net2,767,047
2,679,361Long-term investments96,397
197,123Restricted cash35,662
35,364Operating lease assets4,614,939
4,463,010Other assets129,916
130,781Goodwill21,939
21,939Total assets$     8,803,219
$     8,994,531Liabilities and shareholders' equity

Current liabilities:

Accounts payable$       247,287
$       212,813Accrued payroll and benefits192,520
250,126Accrued liabilities231,312
182,448Unearned revenue207,417
240,375Current operating lease liabilities310,151
302,380Income tax payable48,666
-Total current liabilities1,237,353
1,188,142Long-term operating lease liabilities4,935,729
4,773,434Deferred income tax liabilities143,559
125,674Other liabilities78,943
76,674Total liabilities6,395,584
6,163,924Shareholders' equity:

Common stock, $0.01 par value, 11,500,000 shares authorized, 1,287,050 and 1,304,360 shares issued as of March 31, 2026 and December 31, 2025, respectively12,871
13,044Additional paid-in capital2,235,107
2,204,944Accumulated other comprehensive loss(8,013)
(7,289)Retained earnings167,670
619,908Total shareholders' equity2,407,635
2,830,607Total liabilities and shareholders' equity$     8,803,219
$     8,994,531 CHIPOTLE MEXICAN GRILL, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)
Three months ended
March 31,
2026
2025Operating activities

Net income $       302,824
$       386,599Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization96,718
87,211Deferred income tax provision17,887
(7,329)Impairment, closure costs, and asset disposals9,658
6,018Provision for credit losses(454)
(1,294)Stock-based compensation expense28,000
37,601Other578
914Changes in operating assets and liabilities:

Accounts receivable59,842
43,239Inventory4,745
7,535Prepaid expenses and other current assets(9,438)
(9,748)Operating lease assets79,793
72,540Other assets1,759
61Accounts payable 22,678
13,208Accrued payroll and benefits(55,394)
(107,013)Accrued liabilities41,962
(183)Unearned revenue(27,663)
(31,001)Income tax payable/receivable140,039
113,377Operating lease liabilities(62,990)
(55,662)Other long-term liabilities806
1,002Net cash provided by operating activities651,350
557,075Investing activities

Purchases of leasehold improvements, property and equipment(180,332)
(144,810)Purchases of investments(250)
(4,000)Maturities of investments172,509
154,889Net cash (used in)/provided by investing activities(8,073)
6,079Financing activities

Repurchase of common stock(701,027)
(553,796)Tax withholding on stock-based compensation awards(47,997)
(32,902)Other financing activities1,534
1,524Net cash used in financing activities(747,490)
(585,174)Effect of exchange rate changes on cash, cash equivalents and restricted cash602
(236)Net change in cash, cash equivalents, and restricted cash(103,611)
(22,256)Cash, cash equivalents, and restricted cash at beginning of period385,909
778,379Cash, cash equivalents, and restricted cash at end of period$       282,298
$       756,123Supplemental disclosures of cash flow information

Income taxes paid/(refunded)$       (55,146)
$          8,754Purchases of leasehold improvements, property and equipment accrued in accounts payable and accrued liabilities$       102,570
$        76,389Repurchase of common stock accrued in accounts payable and accrued liabilities$        29,190
$        12,102 CHIPOTLE MEXICAN GRILL, INC.SUPPLEMENTAL FINANCIAL AND OTHER DATA(dollars in thousands)(unaudited) The following table details company-owned restaurant unit data for the periods indicated:
For the three months ended
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
Jun. 30,
2025
Mar. 31,
2025Opened49
132
84
61
57Permanent closures(1)
(5)
(4)
(2)
(2)Relocations-
(1)
(3)
(1)
-Total4,090
4,042
3,916
3,839
3,781Average restaurant sales$        3,094
$        3,104
$        3,132
$        3,142
$       3,186Comparable restaurant sales increase/(decrease)0.5 %
(2.5 %)
0.3 %
(4.0 %)
(0.4 %) The following table details partner-operated restaurant unit data for the periods indicated:

For the three months ended
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
Jun. 30,
2025
Mar. 31,
2025Opened-
7
2
-
2Total14
14
7
5
5CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURESBelow are definitions of the non-GAAP financial measures in this release. The following tables provide a reconciliation of non-GAAP financial measures presented in this release to the most directly comparable financial measures calculated and presented in accordance with GAAP.Adjusted net income is net income excluding certain legal proceedings, restructuring expenses and stock-based compensation retention.Adjusted labor is labor expense excluding expenses related to certain legal proceedings.Adjusted general and administrative expense is general and administrative expense excluding expenses related to restructuring, certain legal proceedings, and stock-based compensation retention.The adjusted effective income tax rate is the effective income tax rate adjusted to reflect the after-tax impact of non-GAAP adjustments.Restaurant level operating margin is equal to the revenues generated by our restaurants less direct restaurant operating costs, which consist of food, beverage and packaging, labor, occupancy and other operating costs, expressed as a percent of total revenue. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other costs that are essential to conduct our business. Management uses restaurant level operating margin as a measure of restaurant performance. Management believes restaurant level operating margin is useful because it highlights trends in our core business that may not otherwise be apparent when relying solely on GAAP financial measures.Adjusted restaurant level operating margin is equal to the restaurant level operating margin excluding certain legal proceedings, expressed as a percent of total revenue. Management uses adjusted restaurant level operating margin as a measure of restaurant performance. Management believes adjusted restaurant level operating margin is useful because it highlights trends in our core business that may not otherwise be apparent when relying solely on GAAP financial measures.We present these non-GAAP measures to facilitate a meaningful evaluation of our operating performance across periods. These adjustments are intended to provide greater transparency of underlying performance and to allow investors to evaluate our business on the same basis as management, which uses these non-GAAP measures in evaluating our performance.Our adjusted net income, adjusted diluted earnings per share, adjusted labor expenses, adjusted general and administrative expenses, adjusted effective income tax rate, restaurant level operating margin, and adjusted restaurant level operating margin measures may not be comparable to other companies' adjusted measures. These adjustments are not necessarily indicative of what our actual financial performance would have been during the periods presented and should be viewed in addition to, and not as an alternative to, our results prepared in accordance with GAAP. Further details regarding these adjustments are included in the tables below. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURESAdjusted Net Income and Adjusted Diluted Earnings per Share(in thousands, except per share amounts)(unaudited)
Three months ended
March 31,
2026
2025Net income$      302,824
$      386,599Non-GAAP adjustments:

Legal proceedings-Labor(1)11,875
-Corporate restructuring costs:

Recipe for Growth restructuring(2)2,140
-Legal proceedings-General and administrative(3)625
-Stock-based compensation(4)3,007
11,877Total non-GAAP adjustments17,647
11,877Tax effect of non-GAAP adjustments above(5)(4,249)
(1,676)After tax impact of non-GAAP adjustments13,398
10,201Adjusted net income$      316,222
$      396,800

Diluted weighted-average number of common shares outstanding1,301,859
1,360,719Diluted earnings per share$          0.23
$          0.28Adjusted diluted earnings per share$          0.24
$          0.29

(1)Estimated liability recognized in labor on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.(2)Cost for restructuring including employee severance, recruitment, other third-party restructuring costs, and stock-based compensation, net of forfeitures.(3)Estimated liability recognized in general and administrative expenses on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.(4)Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure.(5)Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURESAdjusted Labor(in thousands)(unaudited)
Three months ended
March 31,
2026
2025Labor$     805,411
$     718,226Non-GAAP adjustments:

Legal proceedings-Labor(1)(11,875)
-Total non-GAAP adjustments(11,875)
-Adjusted labor$     793,536
$     718,226Adjusted labor as a percent of total revenue25.7 %
25.0 %(1)Estimated liability recognized in labor on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURESAdjusted General and Administrative Expenses(in thousands)(unaudited)
Three months ended
March 31,
2026
2025General and administrative expenses$      203,720
$      172,783Non-GAAP adjustments:

Recipe for Growth restructuring(1)(2,140)
-Legal proceedings-General and administrative(2)(625)
-Stock-based compensation(3)(3,007)
(11,877)Total non-GAAP adjustments(5,772)
(11,877)Adjusted general and administrative expenses$      197,948
$      160,906

(1)Cost for restructuring including employee severance, recruitment, other third-party restructuring costs, and stock-based compensation, net of forfeitures.(2)Estimated liability recognized in general and administrative expenses on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.(3)Stock-based compensation for retention equity awards granted to certain executives in connection with the former CEO's departure. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURESAdjusted Effective Income Tax Rate(unaudited)
Three months ended
March 31,
2026
2025Effective income tax rate25.4 %
22.9 %Tax impact of non-GAAP adjustments(1)(0.1)
(0.2)Adjusted effective income tax rate25.3 %
22.7 %

(1)Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURESRestaurant Level Operating Margin(in thousands)(unaudited)
Three months ended March 31,
2026
Percent of
total revenue
2025
Percent of
total revenueIncome from operations$      397,063
12.9 %
$      479,250
16.7 %Non-GAAP Adjustments

General and administrative expenses203,720
6.6
172,783
6.0Depreciation and amortization96,718
3.1
87,211
3.0Pre-opening costs11,641
0.4
8,210
0.3Impairment, closure costs, and asset disposals9,819
0.3
6,168
0.2Total non-GAAP Adjustments321,898
10.4
274,372
9.5Restaurant level operating margin718,961
23.3
753,622
26.2Legal proceedings-Labor(1)11,875
0.4
-
-Adjusted restaurant level operating margin$      730,836
23.7 %
$      753,622
26.2 %

(1)Estimated liability recognized in labor on the condensed consolidated statements of income for legal matters that we expect to exceed typical costs for legal proceedings.

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Original: CHIPOTLE ANNOUNCES FIRST QUARTER 2026 RESULTS

CHIPOTLE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTSFebruary 3, 2026 4:10 PM
PR Newswire (US)

LAUNCHES "RECIPE FOR GROWTH" STRATEGY TO GROW TRANSACTIONS AND DRIVE ACCURACY, EFFICIENCY AND SPEEDFULL YEAR TOTAL REVENUE INCREASED 5.4% TO $11.9 BILLIONNEWPORT BEACH, Calif., Feb. 3, 2026 /PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its fourth quarter and fiscal year ended December 31, 2025.Fourth quarter highlights, year over year: Total revenue increased 4.9% to $3.0 billionComparable restaurant sales decreased 2.5%Operating margin was 14.1%, a decrease from 14.6%Restaurant level operating margin1 was 23.4%, a decrease from 24.8%Diluted earnings per share was $0.25, a 4.2% increase from $0.24Adjusted diluted earnings per share1 remained flat at $0.25Opened 132 company-owned restaurants, with 97 locations including a Chipotlane, and seven international partner-operated restaurantsFull year 2025 highlights, year over year: Total revenue increased 5.4% to $11.9 billionComparable restaurant sales decreased 1.7%Operating margin was 16.2%, a decrease from 16.9%Restaurant level operating margin1 was 25.4%, a decrease from 26.7%Diluted earnings per share was $1.14, a 2.7% increase from $1.11Adjusted diluted earnings1 per share was $1.17, a 4.5% increase from $1.12Opened 334 company-owned restaurants, with 257 locations including a Chipotlane, and 11 international partner-operated restaurants"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. Against a dynamic consumer backdrop, we opened a record number of restaurants globally and grew Q4 and full year revenue," said Scott Boatwright, Chief Executive Officer, Chipotle. "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."Results for the three months ended December 31, 2025: Total revenue in the fourth quarter of 2025 was $3.0 billion, an increase of 4.9% compared to the fourth quarter of 2024. The increase in total revenue was driven by new restaurant openings and gift card breakage revenue of $27.0 million, which represented a $19.1 million increase compared to the fourth quarter of 2024. Gift card breakage revenue does not impact comparable restaurant sales. These increases were partially offset by a 2.5% decrease in comparable restaurant sales due to lower transactions of 3.2%, partially offset by a 0.7% increase in average check. Digital sales represented 37.2% of total food and beverage revenue.During the fourth quarter we opened 132 company-owned restaurants, of which 97 included a Chipotlane, and seven international partner-operated restaurants. Chipotlanes continue to perform well and are helping enhance guest access and convenience, as well as increase new restaurant sales, margins and returns.Food, beverage and packaging costs in the fourth quarter of 2025 were 30.2% of total revenue, a decrease from 30.4% in the fourth quarter of 2024. The decrease was primarily due to the benefit of menu price increases, lower dairy costs, and cost of sales efficiencies. These decreases were partially offset by inflation, primarily in beef and chicken, and the impact from tariffs enacted in 2025.Labor costs in the fourth quarter of 2025 were 25.5% of total revenue, an increase from 25.2% in the fourth quarter of 2024. The increase was primarily due to lower sales volumes and wage inflation, partially offset by the benefit from menu price increases and higher bonuses in the prior year.General and administrative expenses for the fourth quarter of 2025 were $160.3 million, compared to $191.2 million in the fourth quarter of 2024. The decrease was primarily due to lower stock-based compensation, performance bonuses and legal reserves. On a non-GAAP basis, general and administrative expenses1 for the fourth quarter of 2025 were $162.1 million, compared to $174.9 million in the fourth quarter of 2024.The effective income tax rate for the fourth quarter of 2025 was 23.7%, a decrease from 24.4% in the fourth quarter of 2024. The decrease was primarily driven by increases in U.S. federal income tax credits.Net income for the fourth quarter of 2025 was $330.9 million, or $0.25 per diluted share, compared to $331.8 million, or $0.24 per diluted share, in the fourth quarter of 2024. Adjusted net income1 for the fourth quarter of 2025 was $331.3 million, or $0.25 per adjusted diluted share, compared to $340.0 million, or $0.25 per adjusted diluted share, in the fourth quarter of 2024.During the fourth quarter of 2025 we repurchased $741.6 million of stock at an average price per share of $34.14. As of December 31, 2025, $1.7 billion remained available under share repurchase authorizations from our Board of Directors. The repurchase authorization may be modified, suspended or discontinued at any time.Results for the full year ended December 31, 2025: Total revenue for 2025 was $11.9 billion, an increase of 5.4% compared to 2024. The increase in total revenue was primarily driven by new restaurant openings. The increase was partially offset by a 1.7% decrease in comparable restaurant sales due to lower transactions of 2.9%, partially offset by a 1.2% increase in average check. Digital sales represented 36.7% of total food and beverage revenue.As of December 31, 2025, there were a total of 4,056 Chipotle restaurants including 14 international partner-operated restaurants. During 2025, we opened 334 company-owned restaurants, of which 257 included a Chipotlane, and 11 international partner-operated restaurants.Food, beverage and packaging costs for 2025 were 29.6% of total revenue, a decrease from 29.8% in 2024. The decrease was due to the benefit of menu price increases and, to a lesser extent, cost of sales efficiencies. These decreases were partially offset by inflation, primarily in beef and chicken, and the tariffs enacted in 2025.Labor costs for 2025 were 25.1% of total revenue, an increase from 24.7% in 2024. The increase was primarily due to lower sales volumes and wage inflation, partially offset by the benefit from menu price increases.General and administrative expenses for 2025 were $652.0 million, compared to $697.5 million for 2024. The decrease was primarily due to lower performance bonuses and legal reserves. On a non-GAAP basis, general and administrative expenses1 for 2025 were $621.6 million compared to $686.8 million for 2024.The effective income tax rate for 2025 was 23.6%, a decrease from 23.7% in 2024. The decrease was primarily due to increases in U.S. federal income tax credits and a reduction in nondeductible expenses. These decreases were partially offset with a reduction in excess tax benefits related to option exercises and equity vesting.Net income for 2025 was $1.54 billion, or $1.14 per diluted share, compared to $1.53 billion, or $1.11 per diluted share, in 2024. Adjusted net income1 for 2025 was $1.57 billion, or $1.17 per adjusted diluted share, compared to $1.54 billion, or $1.12 per adjusted diluted share, in 2024.During 2025, we repurchased $2.4 billion of stock at an average price per share of $42.54.More information will be available in our Annual Report on Form 10-K, which will be filed with the SEC in early February 2026."Recipe for Growth" StrategyChipotle's "Recipe for Growth" strategy is leaning into what uniquely differentiates the brand, all to accelerate growth and sharpen competitiveness. Specifically, the strategy is grounded in five key areas, aimed at building a stronger, more profitable Chipotle:Protect and strengthen the core by driving operational and culinary excellence to deliver exceptional value for our guests;Evolve the brand messaging and accelerate menu innovation and new occasions that drive demand into our restaurants;Modernize our business model with industry-leading technology, including leveraging AI and relaunching our Rewards Program, to elevate the experience for our guests and teams;Expand our global reach by scaling with intention through proven, company-owned and partner-operated markets, as well as strategic new regions; andCultivate the best talent in the industry that is energized and focused on speed and agility."Our 'Recipe for Growth' strategy should position us for success over the long-term by growing transactions and driving accuracy, efficiency and speed. We are deploying these initiatives and beginning to see results, including the early success of our high-protein menu and benefits from our high-efficiency equipment package," said Boatwright. "At the center of our strategy is the strength and relevance of our brand and our unwavering commitment to sourcing the best ingredients. We are confident in the opportunity ahead and our ability to delight guests and deliver value for shareholders."OutlookFor 2026, management is anticipating the following:Full year comparable restaurant sales to be about flat350 to 370 new restaurant openings, which includes 10 to 15 international partner-operated restaurants. Around 80% of company-owned restaurants will have a ChipotlaneAn estimated underlying effective full year tax rate between 24% and 26% before discrete itemsDefinitionsThe following definitions apply to these terms as used throughout this release:Comparable restaurant sales, or sales comps, and comparable restaurant transactions, represent the change in period-over-period total revenue or transactions for company-owned restaurants in operation for at least 13 full calendar months.Average restaurant sales refers to the average trailing 12-month food and beverage revenue for company-owned restaurants in operation for at least 12 full calendar months.Restaurant level operating margin represents total revenue less direct restaurant operating costs, expressed as a percent of total revenue.Digital sales represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app or third-party delivery aggregators. Digital sales include revenue deferrals associated with Chipotle Rewards.Partner-operated restaurants - Chipotle restaurants over which Chipotle does not have a controlling financial interest and for which Chipotle does not directly manage day-to-day operations. This includes restaurants operated by third parties pursuant to license or franchise agreements and restaurants in which Chipotle holds a minority, non-controlling ownership interest.Conference Call Details and Supplemental Slides
Chipotle will host a conference call on Tuesday, February 3, 2026, at 4:30 PM Eastern time to discuss our fourth quarter and fiscal year 2025 financial results as well as provide a business update on the Company's "Recipe for Growth" strategy and the first quarter of 2026. In connection, supplemental slides for the call will be available on the company's website at ir.chipotle.com/events.The conference call can be accessed live over the phone by dialing 1-888-317-6003, or for international callers, by dialing 1-412-317-6061 and using code: 3258333. The call will be webcast live on the company's website at ir.chipotle.com/events. An archived webcast will be available approximately one hour after the end of the call.About ChipotleChipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 4,000 restaurants as of December 31, 2025, in the United States, Canada, the United Kingdom, France, Germany, and the Middle East and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. With over 130,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit WWW.CHIPOTLE.COM. Forward-Looking Statements
Certain statements in this press release, in the February 3, 2026, conference call and in the supplemental slides for the call are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements under "Outlook" and "Recipe for Growth Strategy," and about our anticipated full year 2026 comparable restaurant sales growth, number of new company-owned and international partner-owned restaurant openings in 2026, expected number of restaurants with Chipotlanes, and estimated underlying effective 2026 full year tax rate, as well as statements about the expected success of our "Recipe for Growth" strategy, our future food, beverage, packaging, labor, general and administrative and other costs, future estimated tax rates and future long-term prospects. We use words such as "anticipate", "believe", "could", "should", "may", "approximately", "estimate", "confident", "assuming", "expect", "intend", "project", "target", "goal" and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on currently available operating, financial and competitive information available to us as of the date of this release and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including but not limited to: wage inflation and state or local regulations mandating higher minimum wages; the competitive labor market, which impacts our ability to attract and retain qualified employees; the impact of any union organizing efforts and our responses to such efforts; increases in ingredient and other operating costs and the inability of our third-party suppliers and business partners to fulfill their commitments due to inflation, global conflicts, climate change, extreme weather, our Food with Integrity philosophy, tariffs or trade restrictions and supply shortages; risks of food safety incidents and food-borne illnesses; our reliance on certain information technology systems operated by us or by third parties and potential failures, outages or interruptions; our reliance on third party delivery services; privacy and cybersecurity risks, including risk of breaches, unauthorized access, theft, modification, destruction or ransom of guest or employee personal or confidential information stored on our network or the network of third-party providers; the impact of competition, including from sources outside the restaurant industry; the impact of laws and regulations governing employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to preserve, grow, and leverage our brand reputation; the impact of our brand, marketing, promotional, advertising and pricing strategies, digital platform, menu innovations; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites, and the necessary restaurant equipment, technology, construction materials and contractors; and the expected costs of our international expansion plans, including through partner-operated restaurants in the Middle East, Mexico and Asia; evolving consumer preferences, demand, consumption, or spending behavior, reduction in discretionary spending and price increases, and our ability to anticipate or react to these changes; our ability to increase menu prices or realize the benefits of menu price increases to offset inflation and increased costs; failure to meet market expectations for our financial performance or any announced guidance and the impact thereof; the potential impact of activist shareholder actions or tactics; failure to attract or retain key executive talent; and the expense and outcomes of litigation, including possible governmental audits and legal actions and potential class action litigation related to food safety incidents, cybersecurity incidents, compliance with employment or privacy laws, advertising claims, contract disputes or other matters. In addition, many of the foregoing risks and uncertainties are, or could be, exacerbated by any worsening of the global business and macroeconomic environment. These statements also are subject to other risk factors described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.Chipotle.com.1Restaurant level operating margin, adjusted diluted earnings per share, adjusted net income, non-GAAP general and administrative expenses, and non-GAAP effective income tax rate are non-GAAP financial measures. Reconciliations to GAAP measures and further information are set forth in the table at the end of this press release.  CHIPOTLE MEXICAN GRILL, INC.CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data)(unaudited)

Three months ended December 31,
2025
2024Food and beverage revenue$      2,969,211
99.5 %
$      2,829,988
99.5 %Delivery service revenue14,300
0.5
15,322
0.5Total revenue2,983,511
100.0
2,845,310
100.0Restaurant operating costs (exclusive of depreciation
and amortization shown separately below):

Food, beverage and packaging900,155
30.2
866,252
30.4Labor760,524
25.5
716,865
25.2Occupancy162,493
5.4
146,442
5.1Other operating costs461,567
15.5
411,490
14.5General and administrative expenses160,341
5.4
191,216
6.7Depreciation and amortization92,702
3.1
83,876
2.9Pre-opening costs16,946
0.6
12,905
0.5Impairment, closure costs, and asset disposals8,464
0.3
532
-Total operating expenses2,563,192
85.9
2,429,578
85.4Income from operations420,319
14.1
415,732
14.6Interest and other income, net13,324
0.4
23,365
0.8Income before income taxes433,643
14.5
439,097
15.4Provision for income taxes102,711
3.4
107,333
3.8Net income$         330,932
11.1 %
$         331,764
11.7 %Earnings per share:

Basic$                0.25

$                0.24

Diluted$                0.25

$                0.24

Weighted-average common shares outstanding:

Basic1,314,871

1,361,358

Diluted1,319,988

1,368,923

CHIPOTLE MEXICAN GRILL, INC.CONSOLIDATED STATEMENTS OF INCOME(in thousands, except per share data)

Year ended December 31,
2025
2024
(unaudited)

Food and beverage revenue$    11,866,051
99.5 %
$    11,247,384
99.4 %Delivery service revenue59,550
0.5
66,469
0.6Total revenue11,925,601
100.0
11,313,853
100.0Restaurant operating costs (exclusive of depreciation
and amortization shown separately below):

Food, beverage and packaging3,526,992
29.6
3,374,516
29.8Labor2,991,680
25.1
2,789,789
24.7Occupancy624,898
5.2
563,374
5.0Other operating costs1,755,824
14.7
1,568,482
13.9General and administrative expenses652,017
5.5
697,483
6.2Depreciation and amortization361,382
3.0
335,030
3.0Pre-opening costs49,507
0.4
41,897
0.4Impairment, closure costs, and asset disposals27,503
0.2
26,949
0.2Total operating expenses9,989,803
83.8
9,397,520
83.1Income from operations1,935,798
16.2
1,916,333
16.9Interest and other income, net73,721
0.6
93,897
0.8Income before income taxes2,009,519
16.9
2,010,230
17.8Provision for income taxes473,758
4.0
476,120
4.2Net income$      1,535,761
12.9 %
$      1,534,110
13.6 %Earnings per share:

Basic$ 1.15

$ 1.12

Diluted$ 1.14

$ 1.11

Weighted-average common shares outstanding:

Basic1,337,336

1,368,343

Diluted1,342,616

1,376,555

CHIPOTLE MEXICAN GRILL, INC.CONSOLIDATED BALANCE SHEETS(in thousands, except per share data)

December 31,
2025
2024
(unaudited)

Assets

Current assets:

Cash and cash equivalents$         350,545
$         748,537Accounts receivable, net156,466
143,963Inventory49,508
48,942Prepaid expenses and other current assets120,450
97,538Income tax receivable91,393
67,229Investments698,591
674,378Total current assets1,466,953
1,780,587Leasehold improvements, property and equipment, net2,679,361
2,390,126Long-term investments197,123
868,025Restricted cash35,364
29,842Operating lease assets4,463,010
4,000,127Other assets130,781
113,728Goodwill21,939
21,939Total assets$      8,994,531
$      9,204,374Liabilities and shareholders' equity

Current liabilities:

Accounts payable$         212,813
$         210,695Accrued payroll and benefits250,126
261,913Accrued liabilities182,448
179,747Unearned revenue240,375
238,577Current operating lease liabilities302,380
277,836Total current liabilities1,188,142
1,168,768Long-term operating lease liabilities4,773,434
4,262,782Deferred income tax liabilities125,674
46,208Other liabilities76,674
71,070Total liabilities6,163,924
5,548,828Shareholders' equity:

Common stock, $0.01 par value, 11,500,000 shares authorized, 1,304,360 and
1,358,751 shares issued as of December 31, 2025 and 2024, respectively13,044
13,586Additional paid-in capital2,204,944
2,078,010Accumulated other comprehensive loss(7,289)
(10,282)Retained earnings619,908
1,574,232Total shareholders' equity2,830,607
3,655,546Total liabilities and shareholders' equity$      8,994,531
$      9,204,374 CHIPOTLE MEXICAN GRILL, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Year ended December 31,
2025
2024
(unaudited)

Operating activities

Net income $      1,535,761
$      1,534,110Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization361,382
335,030Deferred income tax provision79,483
(42,937)Impairment, closure costs, and asset disposals26,576
24,582Provision for credit losses(657)
215Stock-based compensation expense119,543
131,730Other(14,661)
(3,472)Changes in operating assets and liabilities:

Accounts receivable(11,383)
(29,274)Inventory(710)
(9,797)Prepaid expenses and other current assets(33,042)
9,244Operating lease assets332,685
285,587Other assets(5,155)
(17,690)Accounts payable (7,449)
8,467Accrued payroll and benefits(12,113)
34,857Accrued liabilities(10,499)
27,284Unearned revenue40,710
46,139Income tax payable/receivable(24,125)
(14,363)Operating lease liabilities(258,228)
(217,894)Other long-term liabilities(4,192)
3,258Net cash provided by operating activities2,113,926
2,105,076Investing activities

Purchases of leasehold improvements, property and equipment(666,336)
(593,603)Purchases of investments(28,222)
(986,673)Maturities of investments659,476
722,637Proceeds from sale of equipment-
20,113Net cash used in investing activities(35,082)
(837,526)Financing activities

Repurchase of common stock(2,425,516)
(1,001,559)Tax withholding on stock-based compensation awards(49,458)
(74,229)Other financing activities4,076
2,089Net cash used in financing activities(2,470,898)
(1,073,699)Effect of exchange rate changes on cash, cash equivalents and restricted cash(416)
(1,635)Net change in cash, cash equivalents, and restricted cash(392,470)
192,216Cash, cash equivalents, and restricted cash at beginning of year778,379
586,163Cash, cash equivalents, and restricted cash at end of year$         385,909
$         778,379Supplemental disclosures of cash flow information

Income taxes paid$         423,481
$         532,862Purchases of leasehold improvements, property and equipment accrued in accounts
payable and accrued liabilities$           89,429
$           82,636Repurchase of common stock accrued in accounts payable and accrued liabilities$           22,958
$ 7,279 CHIPOTLE MEXICAN GRILL, INC.SUPPLEMENTAL FINANCIAL AND OTHER DATA(dollars in thousands)(unaudited)
The following table details company-owned restaurant unit data for the periods indicated.

For the three months ended
Dec. 31,
2025
Sep. 30,
2025
Jun. 30,
2025
Mar. 31,
2025
Dec. 31,
2024Opened132
84
61
57
119Permanent closures(5)
(4)
(2)
(2)
(2)Relocations(1)
(3)
(1)
-
(6)Total4,042
3,916
3,839
3,781
3,726Average restaurant sales$             3,104
$             3,132
$             3,142
$             3,186
$          3,213Comparable restaurant sales
increase/(decrease)(2.5 %)
0.3 %
(4.0 %)
(0.4 %)
5.4 % The following table details partner-operated restaurant unit data for the periods indicated.

For the three months ended
Dec. 31,
2025
Sep. 30,
2025
Jun. 30,
2025
Mar. 31,
2025
Dec. 31,
2024Opened7
2
-
2
1Total14
7
5
5
3CHIPOTLE MEXICAN GRILL, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURESBelow are definitions of the non-GAAP financial measures in this release. The following tables provide a reconciliation of non-GAAP financial measures presented in this release to the most directly comparable financial measures calculated and presented in accordance with GAAP.Adjusted net income is net income excluding restaurant asset impairment and gains, corporate asset impairment and gains, expenses/(reductions) related to certain legal proceedings, stock-based compensation forfeiture, stock-based compensation retention grants, and loss on investments. Adjusted general and administrative expense is general and administrative expense excluding expenses related to certain legal proceedings, stock-based compensation forfeiture and stock-based compensation retention grants. The adjusted effective income tax rate is the effective income tax rate adjusted to reflect the after tax impact of non-GAAP adjustments. Restaurant level operating margin is equal to the revenues generated by our restaurants less their direct operating costs which consist of food, beverage and packaging, labor, occupancy and other operating costs, expressed as a percent of total revenue. This performance measure primarily includes the costs that restaurant level managers can directly control and excludes other costs that are essential to conduct our business. Management uses restaurant level operating margin as a measure of restaurant performance. Management believes restaurant level operating margin is useful to investors in that it highlights trends in our core business that may not otherwise be apparent to investors when relying solely on GAAP financial measures. We present these non-GAAP measures in order to facilitate meaningful evaluation of our operating performance across periods. These adjustments are intended to provide greater transparency of underlying performance and to allow investors to evaluate our business on the same basis as our management, which uses these non-GAAP measures in evaluating the company's performance. Our adjusted net income, adjusted diluted earnings per share, adjusted general and administrative expenses, adjusted effective income tax rate and restaurant level operating margin measures may not be comparable to other companies' adjusted measures. These adjustments are not necessarily indicative of what our actual financial performance would have been during the periods presented and should be viewed in addition to, and not as an alternative to, our results prepared in accordance with GAAP. Further details regarding these adjustments are included in the tables below.CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Net Income and Adjusted Diluted Earnings per Share(in thousands, except per share amounts)(unaudited)

Three months ended
December 31, 2025
Year ended
December 31, 2025
2025
2024
2025
2024Net income$         330,932
$         331,764
$      1,535,761
$ 1,534,110Non-GAAP adjustments:

Impairment and exit costs:

Restaurant asset impairment(1)2,466
2,634
2,466
2,634Gain on restaurant lease termination(2)(1,518)
-
(1,518)
-Corporate asset impairment and other
corporate (gains)/costs(3)-
(7,392)
(1,484)
(7,392)Software asset impairment(4)-
-
-
6,249Legal proceedings(5)(4,387)
4,387
(4,387)
21,437Stock-based compensation forfeiture(6)-

-
(27,863)Stock-based compensation retention grants(7)2,611
11,945
34,759
17,079Investment unrealized loss(8)-
-
6,168
1,381Total non-GAAP adjustments(828)
11,574
36,004
13,525Tax effect of non-GAAP adjustments above(9)1,235
(3,386)
(3,358)
(8,804)After tax impact of non-GAAP adjustments407
8,188
32,646
4,721Adjusted net income$         331,339
$         339,952
$      1,568,407
$ 1,538,831

Diluted weighted-average number of common
shares outstanding1,319,988
1,368,923
1,342,616
1,376,555Diluted earnings per share$ 0.25
$ 0.24
$ 1.14
$ 1.11Adjusted diluted earnings per share$ 0.25
$ 0.25
$ 1.17
$ 1.12

(1)Operating lease asset and leasehold improvements, property, plant and equipment impairment charges and other expenses for restaurants due to closures, relocations, or underperformance.(2)Lease remeasurement gain at termination of restaurant lease.(3)Other gains for offices or other corporate assets.(4)Property and equipment impairment charges related to a software asset.(5)(Reduction)/charges for estimated settlements for distinct legal matters that exceeded or are expected to exceed typical costs for these types of legal proceedings.(6)Stock-based compensation expense reversal for equity awards forfeited by our former CEO.(7)Stock-based compensation expense for retention equity awards granted to key executives in connection with the CEO transition.(8)Charges for unrealized losses in long-term investments.(9)Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted General and Administrative Expenses(in thousands)(unaudited)

Three months ended
December 31, 2025
Year ended
December 31, 2025
2025
2024
2025
2024General and administrative expenses$         160,341
$         191,216
$         652,017
$         697,483Non-GAAP adjustments:

Legal proceedings(1)4,387
(4,387)
4,387
(21,437)Stock-based compensation forfeiture(2)-
-
-
27,863Stock-based compensation retention grants(3)(2,611)
(11,945)
(34,759)
(17,079)Total non-GAAP adjustments1,776
(16,332)
(30,372)
(10,653)Adjusted general and administrative expenses$         162,117
$         174,884
$         621,645
$         686,830

(1)Reductions/(charges) for estimated settlements for distinct legal matters that exceeded or are expected to exceed typical costs for these types of legal proceedings.(2)Stock-based compensation expense reversal for equity awards forfeited by our former CEO.(3)Stock-based compensation expense for retention equity awards granted to key executives in connection with the CEO transition. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted Effective Income Tax Rate(unaudited)

Three months ended
December 31,
Year ended
December 31,
2025
2024
2025
2024Effective income tax rate23.7 %
24.4 %
23.6 %
23.7 %Tax impact of non-GAAP adjustments(1)(0.3)
0.2
(0.3)
0.3Adjusted effective income tax rate23.4 %
24.6 %
23.3 %
24.0 %

(1)Adjustments related to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates. CHIPOTLE MEXICAN GRILL, INC.RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Restaurant Level Operating Margin(in thousands)(unaudited)

Three months ended December 31,
2025
Percent of
total revenue
2024
Percent of
total revenueIncome from operations$         420,319
14.1 %
$         415,732
14.6 %Non-GAAP Adjustments

General and administrative expenses160,341
5.4
191,216
6.7Depreciation and amortization92,702
3.1
83,876
2.9Pre-opening costs16,946
0.6
12,905
0.5Impairment, closure costs, and asset disposals8,464
0.3
532
-Total non-GAAP Adjustments278,453
9.3
288,529
10.1Restaurant level operating margin$         698,772
23.4 %
$         704,261
24.8 %

Year ended December 31,
2025
Percent of
total revenue
2024
Percent of
total revenueIncome from operations$      1,935,798
16.2 %
$      1,916,333
16.9 %Non-GAAP Adjustments

General and administrative expenses652,017
5.5
697,483
6.2Depreciation and amortization361,382
3.0
335,030
3.0Pre-opening costs49,507
0.4
41,897
0.4Impairment, closure costs, and asset disposals27,503
0.2
26,949
0.2Total non-GAAP Adjustments1,090,409
9.1
1,101,359
9.7Restaurant level operating margin$      3,026,207
25.4 %
$      3,017,692
26.7 %

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Original: CHIPOTLE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS