Chipotle Mexican Grill vs McDonald's: Revenue, Profit and Business Model
Chipotle Mexican Grill reported $11.9B of revenue in FY2025 and $1.5B of net income. McDonald's reported $26.9B of revenue in FY2025 and $8.6B of net income.
Latest financial snapshot
Chipotle Mexican Grill
- Latest revenue
- $11.9B (FY2025)
- Net income
- $1.5B
- Net margin
- 12.9%
- Revenue growth
- +14.8% a year, FY2020–FY2025
McDonald's
- Latest revenue
- $26.9B (FY2025)
- Net income
- $8.6B
- Net margin
- 31.9%
- Revenue growth
- +1.0% a year, FY2016–FY2025
Financial summary
Chipotle Mexican Grill
Chipotle's revenue rose from $5.98 billion in 2020 to $11.93 billion in 2025, roughly doubling in five years on new units and price increases. Growth slowed in 2025: revenue increased 5.4%, comparable sales declined 1.7%, operating margin slipped to 16.2% from 16.9%, and net income was essentially flat at $1.54 billion ($1.14 diluted EPS). The company returned $2.4 billion to shareholders through buybacks in 2025 and had $1.7 billion of authorization remaining at year-end. In Q2 2026 revenue grew 9.3% to $3.35 billion with net income of $403.5 million, but restaurant-level margin fell to 25.2% from 27.4% on beef and freight inflation and higher labor.
McDonald's
McDonald's corporate revenue ($26.885 billion in 2025, up 3.7%) is a fraction of the roughly $139 billion that customers spend across the system, because franchised restaurant sales are not booked as company revenue. What the company does book is mostly franchise rent and royalties, which explains net income of $8.563 billion in 2025 and operating margins well above typical restaurant operators. In Q2 2026, revenue rose 4% (2% in constant currency) to about $7.1 billion, diluted EPS was $3.32 ($3.38 adjusted), and systemwide sales grew 5% to $37 billion. The company returns most free cash flow through dividends, which it has raised every year since 1976, and share buybacks.
Revenue and profit by year
Chipotle Mexican Grill
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $11.9B | $1.5B | 12.9% | +5.4% | Source |
| FY2024 | $11.3B | — | 0.0% | +14.6% | Source |
| FY2023 | $9.9B | — | 0.0% | +14.3% | Source |
| FY2022 | $8.6B | — | 0.0% | +14.4% | Source |
| FY2021 | $7.5B | — | 0.0% | +26.1% | Source |
| FY2020 | $6B | — | 0.0% | — | Source |
McDonald's
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $26.9B | $8.6B | 31.9% | +3.7% | Source |
| FY2024 | $25.9B | $8.2B | 31.7% | +1.7% | Source |
| FY2023 | $25.5B | $8.5B | 33.2% | +10.0% | Source |
| FY2022 | $23.2B | $6.2B | 26.6% | -0.2% | Source |
| FY2021 | $23.2B | $7.5B | 32.5% | +20.9% | Source |
| FY2020 | $19.2B | $4.7B | 24.6% | -10.1% | Source |
| FY2019 | $21.4B | $6B | 28.2% | +0.5% | Source |
| FY2018 | $21.3B | $5.9B | 27.9% | -6.8% | Source |
| FY2017 | $22.8B | $5.2B | 22.8% | -7.3% | Source |
| FY2016 | $24.6B | $4.7B | 19.0% | — | Source |
Where the revenue comes from
Chipotle Mexican Grill
- Food and Beverage Revenue~99.5%
Sales of entrees, sides and drinks in company-owned restaurants, across in-restaurant, pickup, Chipotlane and delivery orders. Digital channels were 36.7% of food and beverage revenue in 2025 and 38.3% in Q2 2026.
- Delivery Service Revenue~0.5%
Delivery fees on orders placed through Chipotle's own app and website and fulfilled by third-party couriers ($14.3 million in Q4 2025).
McDonald's
- Franchise rent and royalties~45%
Franchise rent and royalties
- Company-operated restaurants~25%
Company-operated restaurants
- Licensing and delivery economics~15%
Licensing and delivery economics
Business model and strategy
Chipotle Mexican Grill
How it makes money
Chipotle runs a company-operated model: it does not franchise in North America or Europe, so it books the full sales of each restaurant rather than royalties, and it carries the labor, food and occupancy costs itself. In 2025 food, beverage and packaging costs were 29.6% of revenue and labor was 25.1%, leaving a restaurant-level operating margin of 25.4%.
Growth strategy
Chipotle's 'Recipe for Growth' strategy, announced in February 2026, has five pillars: strengthen the core through operational and culinary excellence; accelerate menu innovation and new occasions such as catering and group orders; modernize with technology, including AI and a relaunched Chipotle Rewards program; expand globally through company-owned and partner-operated markets; and develop talent.
Competitive advantage
Chipotle's edge comes from three things competitors find hard to copy at once: full ownership of its restaurants, which keeps food standards and operations consistent; a digital system of app ordering, a dedicated digital make-line and Chipotlane pickup lanes; and a 'Food with Integrity' sourcing position that supports premium pricing.
McDonald's
How it makes money
About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees. The corporation makes money in three main ways: (1) rent, because it owns or leases the land and buildings at many franchised sites and charges franchisees rent, often tied to a percentage of sales; (2) royalties, a percentage of each restaurant's monthly sales;
Growth strategy
McDonald's growth plan, branded Accelerating the Arches, rests on marketing, core menu (burgers, chicken, coffee), and the 3 D's: digital, delivery, and drive-thru. The company targets roughly 50,000 restaurants worldwide by the end of 2027, with China, other developmental licensed markets, and the U.S. contributing the largest number of openings.
Competitive advantage
McDonald's advantage is scale that rivals cannot easily copy: more than 45,000 restaurants, control of prime real estate at many franchised sites, a long-tenured franchisee base that funds most store capital, and a supply chain that buys beef, potatoes, chicken, and packaging at volumes few chains match.
Questions about Chipotle Mexican Grill vs McDonald's
Which company has higher revenue — Chipotle Mexican Grill, Inc. or McDonald's Corporation?
Chipotle Mexican Grill, Inc. reported $11.9B (FY2025), while McDonald's Corporation reported $26.9B (FY2025). By last reported revenue, McDonald's Corporation is the larger business, with Chipotle Mexican Grill, Inc. reporting a smaller revenue base.
What is the market cap of Chipotle Mexican Grill, Inc. vs McDonald's Corporation?
Chipotle Mexican Grill, Inc.'s market capitalisation stands at $41.9B, while McDonald's Corporation's is $175.7B. McDonald's Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Chipotle Mexican Grill, Inc..
Which is more financially efficient — Chipotle Mexican Grill, Inc. or McDonald's Corporation?
Chipotle Mexican Grill, Inc. generates $92k / employee in revenue per employee, while McDonald's Corporation generates $179k / employee. McDonald's Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Chipotle Mexican Grill, Inc. and McDonald's Corporation make money?
Chipotle Mexican Grill, Inc. and McDonald's Corporation generate revenue in fundamentally different ways. Chipotle Mexican Grill, Inc.: Chipotle runs a company-operated model: it does not franchise in North America or Europe, so it books the full sales of each restaurant rather than royalties, and it carries the labor, food and occupancy costs itself. McDonald's Corporation: About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees.
Which company is valued higher relative to revenue — Chipotle Mexican Grill, Inc. or McDonald's Corporation?
On a price-to-sales (P/S) basis, Chipotle Mexican Grill, Inc. trades at 3.5x P/S and McDonald's Corporation at 6.5x P/S. McDonald's Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Chipotle Mexican Grill, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Chipotle Mexican Grill, Inc. bigger than McDonald's Corporation?
By last reported revenue, McDonald's Corporation ($26.9B (FY2025)) is the larger company compared to Chipotle Mexican Grill, Inc. ($11.9B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Chipotle Mexican Grill vs McDonald's overview