$CMG (+1,22 %) | Chipotle Mexican Grill Q3'24 Earnings Highlights

🔹 Adjusted EPS: $0.27 (Est. $0.25) 🟢; UP +17.4% YoY

🔹 Revenue: $2.79B (Est. $2.82B) 🔴; UP +13% YoY

🔹 Net Income: $387.4M; UP +23.7% YoY

🔹 Comparable Restaurant Sales Growth: 6.0%, driven by +3.3% Transaction Growth

2024 Outlook:

🔹 Comparable Restaurant Sales Growth: Mid to high-single digits

🔹 New Restaurant Openings: 285-315 company-operated locations (80% with Chipotlanes)

🔹 Full Year Tax Rate: 24%-26%

Margins and Costs:

🔹 Operating Margin: 16.9% (Prev. 16.0%) 

🔹 Restaurant Level Operating Margin: 25.5% (Prev. 26.3%) 

🔹 Food, Beverage, and Packaging Costs: 30.6% of revenue (Prev. 29.7%) 

🔹 Labor Costs: 24.9% of revenue (Flat YoY) 

🔹 Other Operating Costs: 13.8% of revenue (Prev. 14.0%) 

2025 Outlook:

🔹 New Restaurant Openings: 315-345 company-operated locations (80% with Chipotlanes)

Operational Highlights:

🔹 New Restaurants Opened: 86 company-operated locations (73 with Chipotlanes)

🔹 Digital Sales: 34% of total food and beverage revenue

🔹 Stock Repurchase: $488.1M repurchased at an average price of $54.55 per share; $1.1B authorized for future buybacks

Key Com:

🔸 Scott Boatwright, Interim CEO: "Our focus on exceptional people, food, and throughput, alongside the return of Smoked Brisket, drove strong results. We are committed to expanding our North American presence to reach 7,000 restaurants and further our global ambitions."

🔸 Cost Pressures: Higher food costs driven by inflation in avocados, dairy, and protein mix changes were partially offset by prior menu price increases.

🔸 Operational Efficiency: Lower delivery expenses and improved sales leverage contributed to a reduction in other operating costs.

Strategic Initiatives and Long-Term Goals:

🔸 Chipotlanes are enhancing guest convenience, driving higher margins and returns.

🔸 Management remains focused on expanding the Chipotle brand, targeting over 7,000 locations across North America and further international expansion.