01—Abstract
Summary
Summary of the 10-K filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.
Chipotle Mexican Grill, Inc. (CMG) reported robust performance in its 2024 fiscal year, highlighted by a 14.6% increase in total revenue to $11.3 billiona and a 7.4% rise in comparable restaurant sales.
This growth was driven by a 5.3%b increase in transactions and a 2.1% rise in average check size. The company continues to expand its footprint, opening 304 new restaurants, 257 of which featured a Chipotlane, and anticipates opening 315-345 company-owned restaurants in 2025, with over 80% expected to include a Chipotlane. Financially, Chipotle demonstrated strong operational efficiency, with labor costs remaining flat as a percentage of total revenue despite wage inflation, and other operating costs decreasing as a percentage of revenue due to sales leverage and lower delivery expenses.
Diluted earnings per share saw a significant increase of 24.7% to $1.11c. The company maintained a healthy liquidity position with $2.2 billion in cash and investments as of year-end 2024, and has $1 billion remaining under its stock repurchase authorization, indicating a continued commitment to shareholder returns. Management projects continued comparable restaurant sales growth in the low to mid-single digit range for 2025.
02—Key points
Key Highlights
- Total revenue grew 14.6% to $11.3 billion in 2024, driven by strong comparable restaurant sales growth of 7.4%.
- The company opened 304 new restaurants, with 257 featuring Chipotlanes, and plans to open 315-345 in 2025, emphasizing Chipotlane expansion.
- Diluted earnings per share increased by 24.7% to $1.11, reflecting improved profitability.
- Labor costs were managed effectively, remaining flat as a percentage of revenue despite wage pressures, supported by sales leverage.
- Digital sales represented 35.1% of total food and beverage revenue, indicating continued customer preference for digital channels.
- Chipotle maintained a strong financial position with $2.2 billion in cash and investments and $1 billion available for share repurchases.
- Forward-looking guidance suggests continued growth, with anticipated comparable restaurant sales increases in the low to mid-single digit range for 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 5, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $11.31B$9.87B | +14.6% |
| Operating Expenses | $9.40B$8.31B | +13.0% |
| Operating Income | $1.92B$1.56B | +23.0% |
| Net Income | $1.53B$1.23B | +24.8% |
| EPS (Basic) | $1.12$0.89 | +25.8% |
| EPS (Diluted) | $1.11$0.89 | +24.7% |
| Shares Outstanding (Basic) | 1.37B1.38B | −0.7% |
| Shares Outstanding (Diluted) | 1.38B1.39B | −0.6% |
05—Questions
Frequently Asked Questions
What was Chipotle's revenue growth in 2024, and what drove it?
Chipotle's total revenue increased by 14.6% to $11.3 billion in 2024. This growth was primarily driven by a 7.4% increase in comparable restaurant sales, which in turn was fueled by a 5.3% rise in transactions and a 2.1% increase in average check size.
What are Chipotle's plans for new restaurant openings in 2025?
Chipotle plans to open approximately 315 to 345 company-owned restaurants in 2025. A key focus of this expansion is the Chipotlane drive-thru, with expectations that at least 80% of the new restaurants will include this feature.
How did Chipotle manage labor costs given wage inflation?
Despite restaurant wage inflation, including a portion due to minimum wage increases in California, labor costs remained flat as a percentage of total revenue for 2024. This was achieved through sales leverage, which offset the wage increases.
What is Chipotle's financial outlook for 2025?
For 2025, Chipotle anticipates comparable restaurant sales growth in the low to mid-single digit range. The company expects to continue investing in new restaurant development and technology to support growth and efficiency.
06—Continue