10-K 0001058090-26-000009 (2026-02-04) vs 10-K 0001058090-25-000014 (2025-02-05)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 7,885 |
17.8% |
| MD&A | Item 7 | 3,700 |
11.8% |
| Legal Proceedings | Item 3, via Note 11 – Commitments and Contingencies | 586 |
33.5% |
| Accounting Policies | Item 8, Note 1 – Description of Business and Summary of Significant Accounting Policies | 4,823 |
6.7% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Legal Proceedings 268 words changed in this paragraph; it is 32% similar to last year's version.
On November 11, 2024, As reported in previous SEC filings, Chipotle and several of its executive officers are defendants in Michael Stradford filed v. Chipotle et. al., a complaint purported shareholder class action in the U.S. District Court for the Central District of California on behalf of a purported class of purchasers of shares of California, alleging that statements and omissions by Chipotle common stock between February 8, 2024 and October 29, 2024. The complaint purports to state claims against Chipotle, former Chief Executive Officer Brian Niccol, and President and Chief Strategy Officer Jack Hartung, who served during the majority of the claimed class period as Chief Financial and Administrative Officer. The complaint asserts claims arising under Sections 10(b) and 20(a) of the Exchange Act and related rules and regulations, based on Chipotle’s alleged failure during the claimed class period to disclose that (1) Chipotle’s entrée regarding portion sizes were inconsistent and allegedly left many guests dissatisfied; (2) in order to address the issue and retain guest loyalty, Chipotle would have to ensure more generous portion sizes, which would increase costs; and (3) as a result, the defendants’ statements about Chipotle's business, operations, and prospects were materially false and misleading. The complaint asserts that as a result, misleading, resulting in the market price of Chipotle’s stock was being artificially inflated during the claimed class period. period, as well as allegations regarding purportedly improper insider trading by the individual defendants in the case. The complaint case seeks damages on behalf of the purported class in an unspecified amount, interest, an award of reasonable costs and attorneys’ fees, and other relief as determined to be appropriate by the court. On December 18, 2025, the court issued an order granting Chipotle’s motion to dismiss the first amended complaint, with leave to amend, and on January 20, 2026, plaintiffs filed a second amended complaint repeating substantially the same allegations as the original complaints. Chipotle intends to file a motion to dismiss the second amended complaint.
Source: Item 3, via Note 11 – Commitments and Contingencies, 10-K 0001058090-26-000009 vs Item 3, via Note 11 – Commitments and Contingencies, 10-K 0001058090-25-000014
Risk Factors 215 words changed in this paragraph; it is 34% similar to last year's version.
Restaurant dining generally is dependent upon consumer discretionary spending, which may be affected by general economic conditions that are beyond our control. Increasing or prolonged high inflation, international, domestic and regional economic conditions, consumer income levels, financial market volatility, a slow or stagnant pace of economic growth, mass layoffs, rising energy costs, rising interest rates, social unrest, military conflicts and governmental, political and budget concerns or divisions may have a negative effect on consumer confidence and discretionary spending. Persistent inflation and concern about a prolonged economic downturn may lead consumers to decrease their discretionary spending. A significant decrease in guest traffic or average transaction size would negatively impact our financial performance. The actual or perceived threat of a pandemic or communicable disease, terrorist attack, mass shooting, heightened security requirements, including cybersecurity, or a failure to protect information systems for critical infrastructure, such as the electrical grid and telecommunications systems, could harm our operations, the economy or consumer confidence generally. Any of the above factors or other unfavorable changes in business and economic conditions affecting our guests could increase our costs, reduce traffic in our restaurants or limit our ability to increase pricing, any of which could lower our profit margins and have a material adverse effect on our sales, financial condition and results of operations. These factors also could cause us to, among other things, reduce the number and frequency of new restaurant openings, close restaurants or delay remodeling of our existing restaurant locations. Further, poor economic conditions may force nearby businesses to shut down, which could reduce traffic to our restaurants or cause our restaurant locations to be less attractive.
Source: Item 1A, 10-K 0001058090-26-000009 vs Item 1A, 10-K 0001058090-25-000014
MD&A 74 words changed in this paragraph; it is 41% similar to last year's version.
The effective income tax rate decreased 0.5% Other operating costs increased 0.8% as a percentage of total revenue for the year ended December 31, 2024 2025 compared to the year ended December 31, 2023, primarily 2024. The increase was due to the impact from several items, primarily 0.5% of higher marketing and promotional activities, 0.2% of lower nondeductible expenses sales volumes, and 0.2% of 0.6% inflation in natural gas and income tax reserves of 0.4%. These decreases were electricity. This increase was partially offset by a 0.6% reduction in tax benefits related to option exercise and equity vesting. 0.2% benefit from menu price increases.
Source: Item 7, 10-K 0001058090-26-000009 vs Item 7, 10-K 0001058090-25-000014
Accounting Policies 61 words changed in this paragraph; it is 64% similar to last year's version.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The We have adopted and applied the guidance is effective under the ASU for fiscal years beginning after our year ended December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. We are currently evaluating 31, 2025, using the impact of adopting this ASU on our prospective transition method. See Note 6. "Income Taxes" in the accompanying notes to the consolidated financial statements and related disclosures. for further detail.
Source: Item 8, Note 1 – Description of Business and Summary of Significant Accounting Policies, 10-K 0001058090-26-000009 vs Item 8, Note 1 – Description of Business and Summary of Significant Accounting Policies, 10-K 0001058090-25-000014
Every change, by type
Sentences and paragraphs of CMG's Risk Factors and MD&A, 10-K 2026-02-04 against 10-K 2025-02-05.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
We continue to invest in and utilize emerging technologies that have potential to make business tasks easier, more efficient and less labor intensive, including artificial intelligence and machine learning. These new technologies may not deliver the expected efficiencies and could expose us to new risks, including risks related to cybersecurity, data privacy, inaccuracies, hallucinations, bias or discrimination and claims of intellectual property infringement.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
Our financial condition and results of operations have been, and may continue to be, adversely affected by a number of macroeconomic and other factors, many of which are largely outside our control.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
Restaurant dining generally is dependent upon consumer discretionary spending, which may be affected by macroeconomic conditions that are beyond our control. A prolonged economic downturn or slow recovery may reduce consumer spending, leading to lower demand or shifts to lower-priced options. Factors such as unemployment, inflation, interest rate changes, taxes, access to credit, public health crises, trade disputes, and geopolitical instability can all impact consumer behavior, including discretionary spending, potentially reducing demand for our products. A significant decrease in guest traffic or average transaction size would negatively impact our financial performance. If economic uncertainty persists, guests may adopt lasting changes in spending habits, potentially affecting our sales, profitability, and growth plans.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
Our operating results have been, and will continue to be, subject to a number of other macroeconomic and other factors, many of which are largely outside our control. Any one or more of the factors listed below could have a material adverse impact on our business, financial condition, or results of operations:
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
•Climate change and extreme weather affecting costs and availability of ingredients;
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
•Changes in tax laws and government regulations, such as the One Big Beautiful Bill Act, enacted in the U.S. in July 2025;
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
•Government shutdowns and election-related impacts globally, including regime change and political and civil unrest;
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
•Terminations of or changes in existing trade agreements among the countries in which we purchase ingredients; and
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
•Tariffs imposed on commodities or goods, including recent tariffs imposed or threatened to be imposed by the U.S. on other countries, and any retaliation measures taken by such countries.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
These factors also could cause us to, among other things, reduce the number and frequency of new restaurant openings, close restaurants or delay remodeling of our existing restaurant locations. Further, poor economic conditions may force nearby businesses to shut down, which could reduce traffic to our restaurants or cause our restaurant locations to be less attractive.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
Failure to meet market expectations for our financial performance or any announced guidance will likely adversely affect the market price and increase the volatility of our stock, and fluctuations in the stock market as a whole may also impact the market price and volatility of our stock.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedRisk Factors
We have in the past failed, and may in the future fail, to meet our forecasted guidance or market expectations, which has adversely affected, and could in the future adversely affect, the market price of our stock. Any guidance we provide is based on certain assumptions at the time the guidance is given, which may or may not prove to be correct. Failure to meet announced guidance or market expectations of future results, particularly with respect to our operational and financial results and shareholder returns, whether due to our assumptions not being met or the impact of various risks and uncertainties, will likely result in either or both a decline in or increased volatility in the market price of our stock. In addition, price and volume fluctuations in the stock market as a whole may affect the market price of our stock in ways that may be unrelated to our financial performance.
Read it in 10-K 2026-02-04 at sec.gov ↗
RemovedRisk Factors
Our investments in technology and automation to transform and enhance the experience of our employees and guests may not generate the expected results.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
We have launched several initiatives to make our food preparation and cooking processes more efficient and drive a better experience for our employees and consumers, most of which are still moving through our “stage gate” development and evaluation process. These initiatives include a dual sided plancha, which is our cooking grill; an automated produce slicer; an automated make line by Hyphen, which would automatically assemble guest ordered bowls and salads; and Autocado, an automated avocado processing device that cuts, cores and scoops avocados. We have invested significant time and resources into developing and testing these technologies, but there can be no guarantee that all or any of them will be widely deployed throughout our restaurant network or, if deployed, will materially improve employee or guest experience or our financial performance. We also continue to build upon our investments in digital ordering and guest engagement to enhance guest experience and strengthen our ties with our guests. If these initiatives are not ultimately deployed or if we do not fully realize the intended benefits of these significant investments, our business results may suffer.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
Media or other reports of existing or perceived security vulnerabilities in our systems or those of our third-party business partners or service providers can also adversely impact our brand and reputation and negatively impact our business. Additionally, the techniques and sophistication used to conduct cyber-attacks and compromise information technology systems, as well as the sources and targets of these attacks, change frequently and are often not recognized until such attacks are launched or have been in place for a period of time. The rapid evolution and increased adoption of artificial intelligence technologies amplifies these concerns. We continue to make significant investments in technology, third-party services and employees to develop and implement systems and processes that are designed to anticipate cyber-attacks and to prevent or minimize breaches of our information technology systems or data loss, but these security measures cannot provide assurance that we will be successful in preventing such breaches or data loss.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
For example, Europe’s General Data Protection Regulation (“GDPR”) and the U.K. General Data Protection Regulation (which implements the GDPR into U.K. law), impose stringent data protection requirements and provide for significant penalties for noncompliance. Additionally, the California Consumer Privacy Act (“CCPA”) requires, among other things, covered companies to provide specified disclosures to California consumers and allows them to exercise certain rights in connection with their personal information, such as the right to opt-out of certain sales of personal information and to request deletion of personal information (subject to certain exceptions). The CCPA also provides for civil penalties for violations as well as a private right of action for data breaches that may increase data breach litigation. Further, the California Privacy Rights Act, which became effective in January 2023, significantly modified the CCPA to include additional compliance obligations. Since the CCPA was first passed, 19 other states have enacted similar data privacy legislation, eight of which are in effect as of the end of 2024. In addition, a number of other states have passed or are considering additional privacy laws, including laws on health data and biometric data that are in effect, or are expected to take effect in the near future. These state privacy laws will require us to incur additional costs and expenses in our efforts to comply.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
The market price of our common stock may be more volatile than the market price of our peers.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
We believe the market price of our common stock generally has traded at a higher price-earnings ratio than stocks of most of our peer companies as well as the overall market, which typically has reflected market expectations for higher future operating results. At any given point in time, our price-earnings ratio may trade at more than twice the price-earnings ratio of the S&P 500. Also, the trading market for our common stock has been volatile at times, including because of adverse publicity events. As a result, if we fail to meet market expectations for our operating results in the future, any resulting decline in the price of our common stock could be significant.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
In addition, statements about our sustainability-related initiatives and goals, and progress toward those goals, may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. If we are unable to meet our sustainability-related goals or evolving stakeholder or industry expectations and standards, or if we are perceived to have not responded appropriately to the growing concern for sustainability issues, investors, guests and other stakeholders may choose to patronize a competitor that they perceive to be more responsive, and our reputation, business or financial condition may be adversely affected. If our sustainability-related data, processes and reporting are incomplete or inaccurate, or if we fail to achieve progress with respect to our sustainability goals on a timely basis, or at all, our reputation, business, financial performance and growth could be adversely affected.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
Economic and business factors that are largely beyond our control may adversely affect consumer behavior and our financial results.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
Restaurant dining generally is dependent upon consumer discretionary spending, which may be affected by general economic conditions that are beyond our control. Increasing or prolonged high inflation, international, domestic and regional economic conditions, consumer income levels, financial market volatility, a slow or stagnant pace of economic growth, mass layoffs, rising energy costs, rising interest rates, social unrest, military conflicts and governmental, political and budget concerns or divisions may have a negative effect on consumer confidence and discretionary spending. Persistent inflation and concern about a prolonged economic downturn may lead consumers to decrease their discretionary spending. A significant decrease in guest traffic or average transaction size would negatively impact our financial performance. The actual or perceived threat of a pandemic or communicable disease, terrorist attack, mass shooting, heightened security requirements, including cybersecurity, or a failure to protect information systems for critical infrastructure, such as the electrical grid and telecommunications systems, could harm our operations, the economy or consumer confidence generally. Any of the above factors or other unfavorable changes in business and economic conditions affecting our guests could increase our costs, reduce traffic in our restaurants or limit our ability to increase pricing, any of which could lower our profit margins and have a material adverse effect on our sales, financial condition and results of operations. These factors also could cause us to, among other things, reduce the number and frequency of new restaurant openings, close restaurants or delay remodeling of our existing restaurant locations. Further, poor economic conditions may force nearby businesses to shut down, which could reduce traffic to our restaurants or cause our restaurant locations to be less attractive.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
Our quarterly financial results may fluctuate significantly, including due to factors that are not in our control.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
•variations in general economic conditions, including the impact of rising inflation and the impact of rising interest rates on consumer demand trends.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedRisk Factors
As a result of any of these factors, results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any year. Average restaurant sales or comparable restaurant sales in any future period may decrease.
Read it in 10-K 2025-02-05 at sec.gov ↗
RewordedRisk Factors
If we fail or are perceived to have failed to comply with applicable privacy privacy, consumer protection, and data protection laws, or fail to properly respond to or honor consumer individual requests under any of the foregoing privacy such laws, we could be subject to may face enforcement actions and actions, regulatory investigations, and oversight, consent orders limiting our ability to use data or requiring data or model disgorgement, or claims for damages by guests and other affected individuals or parties, or incur fines and damage to our brand reputation, any of which could have a material adverse effect on our operations, financial performance, and business. parties.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
We also compete with non-traditional market participants, such as “convenience meals” in the form of entrées, side dishes or meal preparation kits from grocery stores, meal kit delivery services, and “ghost” or “dark” kitchens, where meals are prepared at separate takeaway premises rather than a restaurant, and with delivery Delivery aggregators and food delivery services, which provide consumers with convenient access to a broad range of competing restaurant chains and food retailers, particularly in urbanized areas, may direct potential customers to other restaurants based on paid placements, online reviews and other factors, and may form a closer relationship with our guests.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
To the extent we, a third party or any such an individual were to experience a breach of our or their information technology systems that results in the unauthorized access, theft, use, destruction or other compromises of guests’ or employees’ data or confidential information of Chipotle stored in or transmitted through such systems, Chipotle, including through cyber-attacks or other external or internal methods, it could result in have an adverse impact on our reputation and brand and we could experience a material loss of revenues from the potential adverse impact to our reputation and brand, revenues, a decrease in our ability to retain guests or attract new ones, the imposition of potentially significant costs (including loss of data or payment for recovery of data) and liabilities, loss of business, loss of business partners and licensees and the disruption to our supply chain, chain and business and plans.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
We also compete with non-traditional market participants, such as “convenience meals” in the form of entrées, side dishes or meal preparation kits from grocery stores, meal kit delivery services, and “ghost” or “dark” kitchens, where meals are prepared at separate takeaway premises rather than a restaurant, and with delivery aggregators and food delivery services, which provide consumers with convenient access to a broad range of competing restaurant chains and food retailers, particularly in urbanized areas, and may form a closer relationship with our guests. restaurant.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
All of these These regulations impose additional obligations on us, which could increase our operating costs, and our failure to comply with any of these regulations could subject us to penalties and other legal liabilities, which could adversely affect our ability to attract and retain employees and our results of operations, and potentially cause us to close or reduce operating hours of some restaurants in these jurisdictions. liabilities.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
In addition, real or perceived concerns about emerging pervasive chemicals and substances in the U.S. food safety issues, supply chain, such as phthalates, per- and polyfluoroalkyl substances ("PFAS"), microplastics or heavy metals in metals, have been the U.S. food supply chain, subject of increased regulatory scrutiny and lawsuits against us and other restaurant companies, which could impact consumers’ confidence in the restaurant industry and reduce restaurant sales.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
Many of our information technology systems also and the systems of our third-party business partners (whether cloud-based or hosted in proprietary servers) contain personal, financial or other information of our guests, employees, and business partners, and confidential information about our business, such as business strategies, financial results, development initiatives and designs, initiatives, and confidential information about third parties, such as suppliers.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
Incidents of food-borne illnesses have occurred and may continue to occur in the restaurant our and retail food industries and incidents may result other restaurants resulting from the failure of restaurant employees to properly cook or maintain our ingredients, ingredients; employees or guests entering our a restaurant while infected with communicable diseases, diseases; or contaminated ingredients resulting from the failure of one of our suppliers a supplier, distributor or employee to execute food safety preventive controls.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
We previously announced that we had set science-based targets validated by the Science Based Targets Initiative to reduce absolute Scope 1, 2 and 3 greenhouse gas emissions 50% by 2030 from a 2019 base year, and achievement of this goal is subject to risks and uncertainties, many including the challenge of which are outside lowering emissions from a 2019 base year as the number of our control. restaurants we operate has increased significantly since 2019 and continues to increase.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
Our profitability has been and Increases could continue to be adversely impacted by increases in labor costs, including wages and health benefits, which are some of our most significant costs, including increases triggered by federal, state and local laws governing matters such as minimum wages, meal and rest breaks and changes to eligibility for overtime pay; regulations regarding scheduling and benefits; increased health care and workers’ compensation insurance costs; and higher wages and benefit costs necessary to attract, hire and retain high-quality employees with the right skill sets in a highly competitive job market.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
Our potential liability exposure for these employment laws and regulations may be higher than our restaurant peers because we have more employees, since we are because, as one of the largest restaurant companies that owns and operates all our restaurants, while restaurants in the U.S. and Canada, we have more employees than most of our restaurant peers peers, which franchise some or a significant portion of their operations.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedRisk Factors
Similar to many other restaurant companies, we have in the past experienced, and we expect to continue to experience, cyber-attacks, including phishing, and other attempts to breach, or gain unauthorized access to, our systems and databases. databases and we expect the number and frequency of these attempts to increase as the scope and scale of our technology footprint and digital operations increases.
Read it in 10-K 2026-02-04 at sec.gov ↗
Quiet changesRisk Factors
We have experienced and may continue to experience challenges in hiring and retaining restaurant employees and in maintaining full restaurant staffing in various locations, which has may have resulted in longer wait times for guest orders, temporary closures of the digital make line and decreased employee and guest satisfaction.
Read it in 10-K 2026-02-04 at sec.gov ↗
Quiet changesRisk Factors
Our ability to open and profitably operate new restaurants also is subject to various risks, such as the identification and availability of desirable locations; the negotiation of acceptable lease terms; the need to obtain all required governmental permits (including zoning approvals and liquor licenses) and comply with other regulatory requirements; the availability of capable contractors and subcontractors; increases in the cost and decreases in the availability of labor and building material; changes in weather, natural disasters, pandemics or other acts of God that could delay construction and adversely affect guest traffic; our ability to hire and train qualified management and restaurant employees; and general economic and business conditions.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedMD&A
(1)Other includes the impact of gift card breakage adjustments, as $20.1 million of additional gift card breakage revenue was recorded during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
Read it in 10-K 2026-02-04 at sec.gov ↗
AddedMD&A
We estimate that the tariffs enacted in 2025 will impact food, beverage and packaging costs by about 15 basis points on an ongoing basis. These estimates could vary based on future tariff policy changes.
Read it in 10-K 2026-02-04 at sec.gov ↗
RemovedMD&A
Cultivate Next Fund. Our Cultivate Next Fund is a venture formed to make early-stage investments into strategically aligned companies that further our purpose to Cultivate a Better World. The Fund is authorized to invest up to $100.0 million, which is financed almost entirely by Chipotle. As of December 31, 2024, we have made $63.0 million in investments through this Fund.
Read it in 10-K 2025-02-05 at sec.gov ↗
RemovedMD&A
Impairment, closure costs, and asset disposals decreased in dollar terms for the year ended December 31, 2024 compared to the year ended December 31, 2023, primarily due to a gain on the sale of corporate equipment and higher charges related to the replacement of certain leasehold improvements in the comparable period.
Read it in 10-K 2025-02-05 at sec.gov ↗
RewordedMD&A
Wages 20.5 Stock-based compensation, excluding August 2024 retention awards (31.8) Performance bonuses (28.0) Legal contingencies (22.5) Conferences, primarily the biennial All Managers’ Conference 17.7 (16.2) Legal contingencies 16.6 services 4.3 Outside services related to corporate initiatives 8.1 11.1 Wages 17.6 Stock-based compensation 5.3 Restructuring costs (6.5) compensation, August 2024 retention awards 17.7 Other 2.2 2.4 For the period ended December 31, 2024 2025 $ 697.5 652.0
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Year ended Percentage December 31, Percentage 2025 2024 2023 change (dollars in millions) Food and beverage revenue $ 11,866.1 $ 11,247.4 $ 9,804.1 14.7% 5.5% Delivery service revenue 59.6 66.5 67.5 (1.6 (10.4 Total revenue $ 11,925.6 $ 11,313.9 $ 9,871.6 14.6% 5.4% Average restaurant sales (1) $ 3.104 $ 3.213 $ 3.018 6.5% (3.4%) Comparable restaurant sales increase increase/(decrease) (1.7%) 7.4% 7.9% Transactions (2.9%) 5.3% 5.0% Average check 1.2% 2.1% 2.9% Menu price increase 2.1% 2.9% 5.2% Check mix (0.9 %) (0.8 %) (2.3 %)
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Occupancy costs decreased 0.1% increased 0.2% as a percentage of total revenue for the year ended December 31, 2024 2025 compared to the year ended December 31, 2023, primarily due to 0.3% of sales leverage partially offset by 0.2% of increased occupancy expense, of which 0.1% was associated with existing restaurants and 0.1% was associated with new restaurants. 2024.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Comparable restaurant sales 695.4 (191.3) Restaurants not yet in comparable base opened in 2025 327.0 Restaurants not yet in comparable base opened in 2024 290.4 Restaurants not yet in comparable base opened in 2023 453.7 481.8 Closures (31.6) Other 2.8 (1) 25.8 For the period ended December 31, 2024 2025 $ 11,313.9 11,925.6
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Year ended December 31, 2025 2024 2023 Beginning of period 3,726 3,437 3,187 Chipotle openings Openings 334 304 270 Non-Chipotle openings - 1 Chipotle permanent Permanent closures (13) (7) (3) Chipotle relocations Relocations (5) (8) (12) Non-Chipotle permanent closures - (6) Total at end of period 4,042 3,726 3,437
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
The effective income tax rate decreased 0.5% 0.1% for the year ended December 31, 2024 2025 compared to the year ended December 31, 2023, 2024, primarily due to increases in U.S. federal income tax credits of 0.3% and lower nondeductible expenses of 0.6% and income tax reserves of 0.4%. 0.2%.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Cash used in investing activities was $35.1 million for the year ended December 31, 2025, compared to $837.5 million for the year ended December 31, 2024, compared to $946.0 million for the year ended December 31, 2023. 2024.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Cash used in financing activities was $2.5 billion for the year ended December 31, 2025, compared to $1.1 billion for the year ended December 31, 2024, compared to $660.7 million for the year ended December 31, 2023. 2024.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
As of December 31, 2024, $1.0 2025, $1.7 billion remained available for repurchases of shares of our common stock, which includes the $300.0 million additional authorization approved by our Board of Directors on December 17, 2024. stock.
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Year The following is a summary of the change in general and administrative expenses for the period indicated:Year ended (dollars in millions) For the period ended December 31, 2023 2024 $ 633.6 697.5 Change from:
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
Year ended Percentage December 31, Percentage 2025 2024 2023 change (dollars in millions) Labor costs Depreciation and amortization $ 2,789.8 361.4 $ 2,441.0 14.3% 335.0 7.9% As a percentage of total revenue 24.7% 24.7% 3.0% 3.0% -%
Read it in 10-K 2026-02-04 at sec.gov ↗
RewordedMD&A
We expect to open approximately 315 350 to 345 company-owned 370 restaurants in 2025. 2026, which includes 10 to 15 international partner-operated restaurants.
Read it in 10-K 2026-02-04 at sec.gov ↗
