Chipotle Mexican Grill (NYSE: CMG) generated $11.93 billion in revenue and $1.54 billion in net income in 2025, operating 4,056 restaurants at year-end. Revenue grew 5.4% on a record 334 company-owned openings, but comparable sales fell 1.7%. In Q2 2026, revenue rose 9.3% to $3.35 billion and comps returned to growth at +2.2%.
How Does Chipotle Make Money?
About 99.5% of Chipotle's revenue is food and beverage sales in restaurants it owns and operates; the rest is delivery fees on orders from its own app and website. Because it does not franchise in North America or Europe, it keeps each restaurant's full sales and bears its costs. In 2025, food, beverage and packaging costs were 29.6% of revenue and labor 25.1%, for a restaurant-level operating margin of 25.4%. Digital orders were 36.7% of food and beverage revenue in 2025 and 38.3% in Q2 2026.
Who Founded Chipotle?
Chef Steve Ells opened the first Chipotle near the University of Denver in July 1993 with an $85,000 loan from his father. McDonald's invested from 1998 and funded national growth, then exited after the January 2006 IPO. Ells led the company until Brian Niccol became CEO in 2018.
Who Is Chipotle's CEO?
Scott Boatwright has been CEO since November 2024, after serving as interim CEO from August 2024 when Brian Niccol left for Starbucks. In February 2026 he launched the 'Recipe for Growth' strategy focused on operations, menu innovation, technology and a relaunched Chipotle Rewards program, and global expansion.
Chipotle's Competitive Advantage
Chipotle combines full ownership of its restaurants, a dedicated digital make-line, Chipotlane pickup lanes and 'Food with Integrity' sourcing. Of 334 company-owned restaurants opened in 2025, 257 had a Chipotlane. Competitors include Taco Bell, McDonald's, Cava, Sweetgreen and Qdoba.
Biggest Risks
The key risks are weak traffic (transactions fell 2.9% in 2025), ingredient and labor inflation that cut restaurant-level margin to 25.2% in Q2 2026 from 27.4%, and food safety. Chipotle paid a $25 million federal fine in 2020 over outbreaks between 2015 and 2018.
