Chipotle Mexican Grill, Inc. (NYSE: CMG) has announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus |
|---|---|---|---|---|
| Total Revenue | $2.8B | - | 13.0% | $2.82B |
| Diluted Earnings Per Share (EPS) | $0.28 | $0.232 | 21.7% | $0.25 |
| Adjusted Diluted EPS | $0.271 | $0.231 | 17.4% | - |
Chipotle reported a total revenue of $2.8 billion, a 13% increase year-over-year, just slightly below the Wall Street consensus estimate of $2.82 billion. The diluted EPS came in at $0.28, surpassing the consensus estimates and showing significant growth from the previous year's $0.232 per share.
Revenue Performance by Segment
| Segment | Performance | Previous Guidance |
|---|---|---|
| Comparable Restaurant Sales | +6% | Mid to high-single digit growth expected |
| Digital Sales | 34% of total revenue | - |
Revenue growth was driven by new restaurant openings and a 6% increase in comparable restaurant sales, bolstered by a 3.3% growth in transactions and a 2.7% increase in average check size. Digital sales accounted for 34% of total revenue, indicating robust performance in Chipotle's digital and delivery services.
Key Developments and Operational Highlights
- Comparable Sales Increase : 6% driven by over 3% transaction growth.
- New Restaurant Openings : 86 new company-operated restaurants, with 73 featuring a Chipotlane.
- Food Costs : Rise in food, beverage, and packaging costs due to inflation, partially offset by prior year’s menu price increases.
- Effective Income Tax Rate : Decreased to 22.9% from 24.2% YoY.
Comments from Company Officers
Scott Boatwright, Interim CEO, reflected on the focus on people, food quality, and the impact of the return of Smoked Brisket on their quarterly results, emphasizing the company’s commitment to value delivery and their strategic growth objectives, including expanding to 7,000 restaurants in North America.
Dividends and Share Repurchase Program
During the quarter, Chipotle repurchased $488.1 million of stock at an average price of $54.55 per share. As of September 30, 2024, $1.1 billion remains available under the existing share repurchase authorizations.
Forward Guidance
Chipotle anticipates mid to high-single digit comparable restaurant sales growth and plans to open between 285 to 315 new restaurants, with over 80% featuring a Chipotlane by the end of 2024. The estimated effective tax rate for the year is expected to be between 24% and 26%.
Stock Price Movement
Following the earnings release, Chipotle's stock experienced a significant decline, with a post-event percentage change of -5.2%.
Overall, Chipotle’s third quarter results reflect a solid performance with an optimistic outlook despite a slight miss on revenue expectations. The company continues to benefit from strategic growth in digital sales and new restaurant openings.
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