Operating margins have compressed from 19.7% in 2024Q2 to 12.9% in 2026Q1, reflecting significant pressure on the company's ability to maintain profitability amidst slowing revenue growth.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 12.14B | 11.93B | 11.31B | 9.87B | 8.63B | 7.55B | 5.98B | 5.59B | 4.86B | 4.48B | 3.9B | 4.5B | 4.11B | 3.21B | 2.73B | 2.27B | 1.84B | 1.52B | 1.33B | 1.09B | 822.93M | 627.7M | 470.72M |
| Revenue Growth % | 5.67% | 5.41% | 14.61% | 14.33% | 14.41% | 26.11% | 7.13% | 14.83% | 8.68% | 14.65% | -13.26% | 9.56% | 27.8% | 17.7% | 20.34% | 23.62% | 20.91% | 14% | 22.67% | 31.94% | 31.1% | 33.35% | - |
| Cost of Goods Sold | 7.75B | 8.9B | 8.3B | 7.29B | 6.57B | 5.84B | 4.94B | 4.44B | 3.95B | 3.72B | 3.41B | 3.33B | 2.99B | 2.36B | 1.99B | 1.68B | 1.35B | 1.14B | 1.05B | 843.21M | 650.68M | 511.62M | 218.42M |
| COGS % of Revenue | - | 74.62% | 73.33% | 73.8% | 76.12% | 77.38% | 82.6% | 79.55% | 81.27% | 83.11% | 87.24% | 73.91% | 72.79% | 73.41% | 72.89% | 74.04% | 73.34% | 75.07% | 78.46% | 77.66% | 79.07% | 81.51% | 46.4% |
| Gross Profit | 4.39B | 3.03B | 3.02B | 2.59B | 2.06B | 1.71B | 1.04B | 1.14B | 910.99M | 756.22M | 498.21M | 1.17B | 1.12B | 854.77M | 740.34M | 589.23M | 489.4M | 378.52M | 286.93M | 242.57M | 172.25M | 116.07M | 252.3M |
| Gross Margin % | 36.13% | 25.38% | 26.67% | 26.2% | 23.88% | 22.62% | 17.4% | 20.45% | 18.73% | 16.89% | 12.76% | 26.09% | 27.21% | 26.59% | 27.11% | 25.96% | 26.66% | 24.93% | 21.54% | 22.34% | 20.93% | 18.49% | 53.6% |
| Gross Profit Growth % | - | 0.28% | 16.69% | 25.41% | 20.8% | 63.97% | -8.88% | 25.41% | 20.47% | 51.79% | -57.57% | 5.06% | 30.77% | 15.46% | 25.65% | 20.4% | 29.29% | 31.92% | 18.29% | 40.82% | 48.4% | -53.99% | - |
| Operating Expenses | 2.47B | 1.01B | 1.1B | 1.03B | 901.72M | 902.07M | 750.92M | 698.53M | 652.62M | 485.42M | 463.65M | 410.7M | 406.96M | 322.05M | 284.48M | 238.66M | 201.57M | 174.81M | 162.89M | 134.39M | 110.3M | 85.08M | 246.19M |
| OpEx % of Revenue | - | 8.5% | 9.73% | 10.42% | 10.44% | 11.95% | 12.55% | 12.5% | 13.41% | 10.84% | 11.88% | 9.12% | 9.91% | 10.02% | 10.42% | 10.52% | 10.98% | 11.51% | 12.23% | 12.38% | 13.4% | 13.55% | 52.3% |
| Selling, General & Admin | 682.95M | 652.02M | 697.48M | 633.58M | 564.19M | 606.85M | 466.29M | 451.55M | 375.46M | 296.39M | 276.24M | 250.21M | 273.9M | 203.73M | 183.41M | 149.43M | 118.59M | 107.55M | 100.78M | 84.62M | 65.28M | 53.94M | 222.71M |
| SG&A % of Revenue | - | 5.47% | 6.16% | 6.42% | 6.53% | 8.04% | 7.79% | 8.08% | 7.72% | 6.62% | 7.08% | 5.56% | 6.67% | 6.34% | 6.72% | 6.58% | 6.46% | 7.08% | 7.57% | 7.79% | 7.93% | 8.59% | 47.31% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 361.38M | 403.88M | 394.69M | 337.52M | 295.21M | 284.63M | 246.98M | 277.16M | 189.03M | 187.41M | 160.48M | 133.06M | 118.32M | 101.07M | 89.24M | 82.98M | 67.26M | 62.11M | 49.76M | 45.01M | 31.14M | 23.48M |
| Operating Income | 1.92B | 2.01B | 1.92B | 1.56B | 1.16B | 804.94M | 290.16M | 443.96M | 258.37M | 270.79M | 34.57M | 763.59M | 710.8M | 532.72M | 455.87M | 350.56M | 287.83M | 203.71M | 124.04M | 108.18M | 61.95M | 30.99M | 6.11M |
| Operating Margin % | 15.79% | 16.88% | 16.94% | 15.78% | 13.44% | 10.67% | 4.85% | 7.95% | 5.31% | 6.05% | 0.89% | 16.96% | 17.3% | 16.57% | 16.69% | 15.45% | 15.68% | 13.42% | 9.31% | 9.96% | 7.53% | 4.94% | 1.3% |
| Operating Income Growth % | - | 5.03% | 23.01% | 34.25% | 44.16% | 177.41% | -34.64% | 71.83% | -4.59% | 683.39% | -95.47% | 7.43% | 33.43% | 16.86% | 30.04% | 21.79% | 41.3% | 64.23% | 14.66% | 74.62% | 99.88% | 407.6% | - |
| EBITDA | 2.29B | 2.37B | 2.25B | 1.88B | 1.45B | 1.06B | 528.7M | 656.74M | 460.35M | 434.14M | 180.94M | 893.96M | 821.27M | 628.77M | 540M | 425.5M | 356.75M | 265.01M | 176.81M | 151.78M | 96.2M | 59.02M | 27.91M |
| EBITDA Margin % | 18.84% | 19.91% | 19.9% | 19.02% | 16.76% | 14.04% | 8.83% | 11.76% | 9.46% | 9.7% | 4.63% | 19.86% | 19.99% | 19.56% | 19.77% | 18.75% | 19.43% | 17.45% | 13.27% | 13.98% | 11.69% | 9.4% | 5.93% |
| EBITDA Growth % | -0.89% | 5.46% | 19.93% | 29.71% | 36.58% | 100.42% | -19.5% | 42.66% | 6.04% | 139.94% | -79.76% | 8.85% | 30.62% | 16.44% | 26.91% | 19.27% | 34.62% | 49.89% | 16.49% | 57.77% | 63% | 111.48% | - |
| D&A (Non-Cash Add-back) | 370.89M | 361.38M | 335.03M | 319.39M | 286.83M | 254.66M | 238.53M | 212.78M | 201.98M | 163.35M | 146.37M | 130.37M | 110.47M | 96.05M | 84.13M | 74.94M | 68.92M | 61.31M | 52.77M | 43.59M | 34.25M | 28.03M | 21.8M |
| EBIT | 1.92B | 2.01B | 1.99B | 1.63B | 1.21B | 845.5M | 336.26M | 478.16M | 333.55M | 296.48M | 75.61M | 793.71M | 733.38M | 554.98M | 472.8M | 364.86M | 301.89M | 204.63M | 127.51M | 114.3M | 61.95M | 30.99M | 6.11M |
| Net Interest Income | 51.47M | 73.72M | 93.9M | 62.69M | 21.13M | 7.82M | 3.62M | 14.33M | 10.07M | 4.95M | 3.63M | 6.28M | 3.5M | 1.75M | 1.82M | -857K | 1.23M | 520K | 3.17M | 5.82M | 0 | 0 | 0 |
| Interest Income | 51.47M | 73.72M | 93.9M | 62.69M | 21.13M | 7.82M | 3.62M | 14.33M | 10.07M | 4.95M | 3.63M | 6.28M | 3.5M | 1.75M | 1.82M | 2.09M | 1.5M | 925K | 3.47M | 6.12M | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.94M | 269K | 405K | 302K | 296K | 0 | 0 | 0 |
| Other Income/Expense | -2.42M | -3.29M | 93.9M | 62.69M | 21.13M | 7.82M | 3.62M | 14.33M | 10.07M | 4.95M | 4.17M | 6.28M | 3.5M | 1.75M | 1.82M | -857K | 1.23M | 520K | 3.17M | 5.82M | 6.3M | -754K | 20K |
| Pretax Income | 1.91B | 2.01B | 2.01B | 1.62B | 1.18B | 812.76M | 293.78M | 458.29M | 268.44M | 275.74M | 38.74M | 769.87M | 714.3M | 534.47M | 457.69M | 349.7M | 289.06M | 204.22M | 127.21M | 114M | 68.25M | 30.24M | 6.13M |
| Pretax Margin % | 15.77% | 16.85% | 17.77% | 16.42% | 13.68% | 10.77% | 4.91% | 8.2% | 5.52% | 6.16% | 0.99% | 17.1% | 17.39% | 16.63% | 16.76% | 15.41% | 15.74% | 13.45% | 9.55% | 10.5% | 8.29% | 4.82% | 1.3% |
| Income Tax | 461.83M | 473.76M | 476.12M | 391.77M | 282.43M | 159.78M | -61.98M | 108.13M | 91.88M | 99.49M | 15.8M | 294.26M | 268.93M | 207.03M | 179.69M | 134.76M | 110.08M | 77.38M | 49M | 43.44M | 26.83M | -7.46M | -20K |
| Effective Tax Rate % | 24.13% | 23.58% | 23.68% | 24.18% | 23.9% | 19.66% | -21.1% | 23.59% | 34.23% | 36.08% | 40.79% | 38.22% | 37.65% | 38.74% | 39.26% | 38.54% | 38.08% | 37.89% | 38.52% | 38.1% | 39.31% | -24.66% | -0.33% |
| Net Income | 1.45B | 1.54B | 1.53B | 1.23B | 899.1M | 652.98M | 355.77M | 350.16M | 176.55M | 176.25M | 22.94M | 475.6M | 445.37M | 327.44M | 278M | 214.94M | 178.98M | 126.84M | 78.2M | 70.56M | 41.42M | 37.7M | 6.13M |
| Net Margin % | 11.96% | 12.88% | 13.56% | 12.45% | 10.41% | 8.65% | 5.94% | 6.27% | 3.63% | 3.94% | 0.59% | 10.57% | 10.84% | 10.19% | 10.18% | 9.47% | 9.75% | 8.35% | 5.87% | 6.5% | 5.03% | 6.01% | 1.3% |
| Net Income Growth % | -7.01% | 0.11% | 24.85% | 36.66% | 37.69% | 83.54% | 1.6% | 98.33% | 0.17% | 668.39% | -95.18% | 6.79% | 36.02% | 17.78% | 29.34% | 20.09% | 41.1% | 62.2% | 10.83% | 70.35% | 9.89% | 515.34% | - |
| Net Income (Continuing) | 1.45B | 1.54B | 1.53B | 1.23B | 899.1M | 652.98M | 355.77M | 350.16M | 176.55M | 176.25M | 22.94M | 475.6M | 445.37M | 327.44M | 278M | 214.94M | 178.98M | 126.84M | 78.2M | 70.56M | 41.42M | 37.7M | 6.13M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.12 | 1.14 | 1.11 | 0.89 | 0.64 | 0.46 | 0.25 | 0.25 | 0.13 | 0.12 | 0.02 | 0.30 | 0.28 | 0.21 | 0.18 | 0.14 | 0.11 | 0.08 | 0.05 | 0.04 | 0.03 | 0.03 | 0.00 |
| EPS Growth % | -3.54% | 2.7% | 24.72% | 39.06% | 39.13% | 84% | 0% | 92.31% | 8.33% | 679.22% | -94.87% | 7.14% | 33.33% | 16.67% | 28.57% | 27.27% | 39.24% | 67.37% | 10.8% | 66.41% | -10.49% | - | - |
| EPS (Basic) | - | 1.15 | 1.12 | 0.89 | 0.65 | 0.46 | 0.25 | 0.25 | 0.13 | 0.12 | 0.02 | 0.31 | 0.29 | 0.21 | 0.18 | 0.14 | 0.11 | 0.08 | 0.05 | 0.04 | 0.03 | 0.03 | 0.00 |
| Diluted Shares Outstanding | 1.3B | 1.34B | 1.38B | 1.39B | 1.4B | 1.43B | 1.42B | 1.41B | 1.4B | 1.43B | 1.49B | 1.57B | 1.58B | 1.56B | 1.59B | 1.59B | 1.59B | 1.61B | 1.66B | 1.66B | 1.62B | 1.32B | 1.27B |
| Basic Shares Outstanding | 1.3B | 1.34B | 1.37B | 1.38B | 1.39B | 1.41B | 1.4B | 1.39B | 1.39B | 1.42B | 1.46B | 1.55B | 1.55B | 1.55B | 1.58B | 1.56B | 1.56B | 1.59B | 1.64B | 1.63B | 1.6B | 1.31B | 1.27B |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Labor cost and throughput volatility
As reported in recent financial filings, CMG's revenue growth has decelerated significantly from 18.2% in 2024Q2 to 7.4% by 2026Q1, suggesting that the company's ability to drive top-line expansion through unit growth and price increases is encountering a more challenging consumer environment and potential market saturation.
The consistent decline in year-over-year revenue growth rates indicates that the brand's high-frequency transactional model is losing its previous momentum. Investors should monitor whether this deceleration reflects a structural ceiling in domestic unit capacity or a broader pullback in discretionary spending among the core customer base.
Based on the company's reported figures, gross margins have exhibited significant instability, fluctuating from a high of 28.9% in 2024Q2 to a low of 23.4% in 2025Q4, highlighting the company's sensitivity to commodity price volatility and the difficulty of maintaining pricing power amidst rising input costs.
The sharp contraction in gross margin during late 2025 suggests that the company's fresh-ingredient supply chain is highly vulnerable to inflationary pressures. This volatility implies that management's ability to protect profitability is constrained by the need to balance menu pricing with the risk of alienating price-sensitive consumers.
According to quarterly income statements, operating margins have compressed from 19.7% in 2024Q2 to 12.9% in 2026Q1, indicating that the company is struggling to maintain the operating leverage required to scale its labor-intensive restaurant model effectively as revenue growth slows and fixed costs remain sticky.
The inability to scale operating income in proportion to revenue suggests that the company's labor-heavy cost structure is becoming a drag on profitability. This trend warrants further investigation into whether recent investments in automation are failing to yield the expected efficiency gains in the current operating environment.
Data from recent filings reveals that EPS growth has turned negative, falling 17.9% in 2026Q1, which challenges the narrative of a resilient, high-growth brand and suggests that the company may be reaching a point of diminishing returns on its current operational and capital allocation strategies.
Short-sellers may focus on the recent divergence between revenue growth and bottom-line performance as evidence of a maturing business model facing structural margin compression. The reliance on consistent throughput to drive profitability appears increasingly fragile, particularly if labor costs continue to outpace the company's ability to raise menu prices.
Quick answers to the most common questions about buying CMG stock.
For fiscal year 2025, Chipotle Mexican Grill, Inc. (CMG) reported total revenue of $11.93B. This represents a 2433.5% increase compared to $470.7M in 2004.
Chipotle Mexican Grill, Inc. (CMG) is profitable, generating $1.54B in net income for the fiscal year ending 2025 with a net profit margin of 12.9%.
Chipotle Mexican Grill, Inc. (CMG) reported an operating income of $2.01B, resulting in an operating profit margin of 16.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Chipotle Mexican Grill, Inc. (CMG) generated $3.03B in gross profit for the year, representing a gross profit margin of 25.4%. This demonstrates the company's core pricing power and production efficiency.