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01/11 03:09
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with a 15% increase in sales and 24% EPS growth. Despite some cost pressures, Chipotle's strategic expansions, tech innovations, and a robust share repurchase program signal confidence. The Q&A section reveals management's optimism about international growth and digital sales. Though there are concerns about tariffs and labor costs, the overall positive guidance and strategic initiatives outweigh these risks, suggesting a positive stock price movement.
Sales (FY 2024) $11,300,000,000, up 15% year-over-year, driven by a 7.4% comp including over 5% transaction growth.
Digital Sales (FY 2024) $3,900,000,000, representing 35% of total sales.
Average Unit Volumes (AUVs) (FY 2024) $3,200,000, an increase from previous year.
Restaurant Level Margin (FY 2024) 26.7%, an increase of 50 basis points year-over-year.
Adjusted Diluted EPS (FY 2024) $1.12, representing 24% growth over last year.
New Restaurants Opened (FY 2024) 304 new restaurants, including 257 Chipotlanes.
Sales (Q4 2024) $2,800,000,000, up over 13% year-over-year, driven by a 5.4% comp.
Digital Sales (Q4 2024) 34% of total sales.
Restaurant Level Margin (Q4 2024) 24.8%, a decline of 60 basis points year-over-year.
Adjusted Diluted EPS (Q4 2024) $0.25, representing 19% growth over last year.
New Restaurants Opened (Q4 2024) 119 restaurants, including 95 Chipotlanes.
Cost of Sales (Q4 2024) 30.4%, an increase of about 70 basis points from last year.
Labor Costs (Q4 2024) 25.2%, an increase of about 20 basis points from last year.
Other Operating Costs (Q4 2024) 14.5%, a decrease of about 20 basis points from last year.
Marketing Costs (Q4 2024) 3% of sales, a decrease of about 10 basis points from last year.
G&A (Q4 2024) $191,000,000 on a GAAP basis, or $175,000,000 on a non-GAAP basis.
Cash Position (End of Q4 2024) $2,300,000,000 in cash, restricted cash, and investments with no debt.
Stock Repurchase (Q4 2024) $331,000,000 at an average price of $59.83.
Stock Repurchase (Full Year 2024) Nearly $1,000,000,000 at an average price of $57.21.
New Product Launches: The successful rollout of brisket as a limited time offer contributed to a 4% transaction growth in Q4.
Limited Time Offers: The Chipotle Honey Chicken pilot was a success, performing well in early sensory testing and broader market tests.
Market Expansion: Opened a record 304 new restaurants in 2024, including 257 Chipotle Lanes, and plans to open between 315 and 345 new locations in 2025.
International Growth: Expanded to 85 international restaurants, with plans to accelerate growth in Canada and the Middle East in 2025.
Operational Efficiencies: Improved throughput by about two entrees in peak periods, with a focus on modernizing back of house operations.
Technology Rollout: Rolling out produce slicers to all restaurants to enhance efficiency and maintain culinary standards.
Strategic Shifts: Prioritizing a guest-obsessed culture and modernizing back of house operations to improve efficiency and guest experience.
Wildfire Impact: Recent wildfires in Southern California caused devastation, but the impact on Chipotle's business was minimal. However, the company prioritized the safety of its teams and guests.
Supply Chain Challenges: Potential tariffs on items imported from Mexico, Canada, and China could impact costs, particularly for avocados, which could lead to a 60 basis point increase in cost of sales.
Labor Costs: Wage inflation is expected to remain in the mid-single digit range, which could affect overall labor costs.
Competitive Pressures: The company is cautious about taking additional pricing due to rising consumer price sensitivity and competitive pressure on value.
Economic Factors: The company anticipates a challenging first half of 2025 due to tougher comparisons and external factors such as weather impacting sales.
Operational Efficiency: The modernization of back-of-house operations is a priority to improve efficiency and throughput, which is crucial for maintaining margins.
Digital Sales: Digital sales are a significant portion of revenue, and the company is focusing on enhancing digital experiences to drive growth.
Market Expansion: While expanding internationally, the company is cautious about the economic model in Europe and the potential for growth in Canada and the Middle East.
Sales Growth: Sales grew about 15% to reach $11.3 billion for fiscal year 2024.
New Restaurant Openings: Opened a record 304 new restaurants, including 257 Chipotlanes.
Digital Sales: Digital sales reached $3.9 billion, representing 35% of total sales.
Guest Obsession Strategy: Prioritizing a guest-obsessed mindset to enhance customer experience.
Operational Improvements: Focus on throughput and modernization of back of house to improve efficiency.
International Expansion: Accelerating growth in Canada and the Middle East.
Marketing Strategy: Strong marketing plan for 2025, including partnerships and limited-time offers.
2025 Comp Sales Guidance: Anticipate annual comps to be in the low to mid single-digit range.
New Openings Guidance: Expect between 315 and 345 new openings in 2025, with at least 80% including a Chipotle Lane.
Cost of Sales Guidance: Expect cost of sales in the high 29% range for Q1 2025.
Labor Cost Guidance: Expect labor costs to be in the high 24% range for Q1 2025.
Effective Tax Rate Guidance: Estimate underlying effective tax rate in the 25% to 27% range for 2025.
Long-term Growth Target: Aiming to reach 7,000 restaurants in North America.
Share Repurchase Program: During the fourth quarter, Chipotle purchased $331,000,000 of its stock at an average price of $59.83. For the full year, nearly $1,000,000,000 was spent on share repurchases at an average price of $57.21. The Board has authorized an additional $300,000,000 for share purchases, leaving over $1,000,000,000 remaining in the share purchase authorization.
The earnings call presents a mixed picture: strong menu innovation and digital strategy, but concerns about traffic decline and margin pressure. The Q&A reveals cautious pricing and growth strategies, with management confident in mid-single-digit growth but vague on specifics. Traffic losses and economic pressures are noted. Overall, the sentiment is balanced, leading to a neutral prediction.
The earnings call summary reveals a generally positive outlook with strong new store productivity, consistent sales trends, and strategic initiatives like LTOs and operational improvements. The Q&A section highlights confidence in achieving growth despite macro challenges, with no significant competitive threats. The introduction of a new COO and high-efficiency equipment rollout also supports operational enhancements. Although there are some concerns about macro susceptibility, the overall sentiment leans towards optimism, suggesting a positive stock price movement.
The earnings call highlights strong financial performance with a 15% increase in sales and 24% EPS growth. Despite some cost pressures, Chipotle's strategic expansions, tech innovations, and a robust share repurchase program signal confidence. The Q&A section reveals management's optimism about international growth and digital sales. Though there are concerns about tariffs and labor costs, the overall positive guidance and strategic initiatives outweigh these risks, suggesting a positive stock price movement.
Chipotle's earnings report shows solid financial performance with a 13% YoY sales increase and strong in-restaurant sales growth. Despite a slight margin decline, the company maintains positive guidance and plans significant new restaurant openings. The Q&A revealed confidence in future growth and efficiency improvements, though some uncertainty remains around pricing strategies. The substantial share repurchase and authorization indicate strong shareholder returns. Overall, these factors suggest a positive stock price movement in the short term.
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