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CHIPOTLE MEXICAN GRILL INC 8-K Report, Financial Results (Feb 4, 2025)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed February 4, 2025
Period End
February 4, 2025
Security
CMG
In the record · 2016–202610-K1110-Q328-K101

CMG filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 101 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Mar ’19Mar ’19
  2. Material agreement8-K · Apr ’21Apr ’21
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed February 4, 2025. Cited figures are marked; the original filing is the authoritative source.

Chipotle Mexican Grill (CMG) reported strong fourth-quarter and full-year 2024 results, led by transaction-driven comparable sales growth.

Q4 2024 total revenue rose 13.1% to $2.8 billiona, with comparable restaurant sales up 5.4% (transactions +4.0%, average check +1.4%). Full-year 2024 revenue reached $11.3 billion (+14.6%), comparable sales grew 7.4% (transactions +5.3%), and operating margin expanded to 16.9% from 15.8%. Diluted EPS for the year was $1.11 (+24.7%), and adjusted diluted EPS was $1.121 (+24.4%).

The company opened 304 company-owned restaurants in 2024, bringing the year-end count to 3,726. Margin trends were mixed beneath the headline growth. Q4 restaurant-level operating margin fell to 24.8%b from 25.4%, driven by higher food, beverage and packaging costs (30.4% of revenue vs. 29.7%) from ingredient usage, a protein mix shift, and avocado and dairy inflation.

Full-year restaurant-level margin nonetheless improved to 26.7% from 26.2%. G&A rose to $697.5 millionc for the year, though non-GAAP G&A was $686.8 million. Capital returns were significant: the company repurchased $995.8 million of stock in 2024 and $331.3 million in Q4, and the Board authorized an additional $300 million on February 4, 2025 on top of prior authorizations.

For 2025, management guided to low-to-mid single-digit comparable sales growth, 315 to 345 new company-owned restaurant openings (over 80%d with a Chipotlane), and an underlying effective tax rate of 25% to 27% before discrete items. Investors will likely focus on whether transaction growth can persist against a tougher comparison and whether food cost inflation can be offset by menu pricing and sales leverage. The full Form 10-K is expected by the end of February 2025.

02—Key points

Key Highlights

  1. Q4 2024 comparable restaurant sales rose 5.4%, driven by 4.0% transaction growth; full-year comps rose 7.4% with transactions up 5.3%.
  2. Full-year 2024 total revenue grew 14.6% to $11.3 billion, and operating margin expanded 110 basis points to 16.9%.
  3. Diluted EPS was $1.11 for 2024 (+24.7%); adjusted diluted EPS was $1.121 (+24.4%).
  4. Q4 restaurant-level operating margin declined to 24.8% from 25.4%, pressured by food, beverage and packaging costs at 30.4% of revenue.
  5. Full-year restaurant-level operating margin improved to 26.7% from 26.2%, and digital sales reached 35.1% of food and beverage revenue.
  6. Board authorized an additional $300 million in share repurchases; $995.8 million was repurchased during 2024.
  7. 2025 outlook calls for low-to-mid single-digit comps, 315 to 345 new openings (over 80% with Chipotlanes), and a 25% to 27% underlying tax rate.

03—Questions

Frequently Asked Questions

  1. How strong was Chipotle's sales growth in the fourth quarter and full year 2024?

    Q4 2024 total revenue increased 13.1% to $2.8 billion, with comparable restaurant sales up 5.4%. For the full year, revenue grew 14.6% to $11.3 billion and comparable sales rose 7.4%. Growth was primarily transaction-driven, with transactions up 4.0% in Q4 and 5.3% for the year, supplemented by new restaurant openings.

  2. Did profitability improve, and were there any margin pressures?

    Full-year operating margin expanded to 16.9% from 15.8%, and restaurant-level operating margin rose to 26.7% from 26.2%. However, Q4 restaurant-level margin fell to 24.8% from 25.4%. The decline reflected higher food, beverage and packaging costs (30.4% of revenue vs. 29.7%) from increased portioning, a protein mix shift toward Smoked Brisket, and inflation in avocados and dairy, partly offset by menu price increases.

  3. How much is Chipotle returning to shareholders, and what is the new buyback authorization?

    Chipotle repurchased $995.8 million of stock in 2024 at an average price of $57.21, including $331.3 million in Q4. On February 4, 2025, the Board authorized a further $300 million in repurchases, in addition to previously announced authorizations. Management noted the program may be modified, suspended, or discontinued at any time.

  4. What is the 2025 outlook?

    Management expects full-year 2025 comparable restaurant sales growth in the low to mid-single digit range, 315 to 345 new company-owned restaurant openings with over 80% including a Chipotlane, and an underlying effective tax rate of 25% to 27% before discrete items. Note that the 2024 underlying comparison includes strong comps, so 2025 growth is guided below that pace.

  5. Are there any notable one-time or non-GAAP items affecting earnings?

    Yes. Q4 GAAP G&A rose to $191.2 million, partly due to stock-based compensation retention grants tied to the CEO transition ($11.9 million in Q4) and legal reserves. Full-year GAAP results included a $27.9 million reversal of stock compensation for forfeited awards by the former CEO, and $21.4 million in legal proceedings charges. Adjusted EPS excludes these items, so investors should review the reconciliation tables alongside GAAP figures.

04—Continue

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