FOURTH QUARTER COMPARABLE SALES INCREASE 5.4%
DRIVEN BY 4.0% TRANSACTION GROWTH
FULL YEAR 2024 COMPARABLE SALES INCREASE 7.4%
DRIVEN BY 5.3% TRANSACTION GROWTH
NEWPORT
BEACH, Calif., Feb. 4, 2025
/PRNewswire/ -- Chipotle Mexican Grill, Inc. (NYSE: CMG) today
reported financial results for its fourth quarter and fiscal year
ended December 31, 2024.
Fourth quarter highlights, year over
year:
- Total revenue increased 13.1% to $2.8
billion
- Comparable restaurant sales increased 5.4%
- Operating margin was 14.6%, an increase from 14.4%
- Restaurant level operating margin was 24.8%1, a
decrease from 25.4%1
- Diluted earnings per share was $0.24, a 20.0% increase from $0.202
- Adjusted diluted earnings per share was $0.251, a 19.0% increase from
$0.211, 2
- Opened 119 company-owned restaurants with 95 locations
including a Chipotlane, and one international licensed
restaurant
Full year 2024 highlights, year over year:
- Total revenue increased 14.6% to $11.3
billion
- Comparable restaurant sales increased 7.4%
- Operating margin was 16.9%, an increase from 15.8%
- Restaurant level operating margin was 26.7%1, an
increase from 26.2%1
- Diluted earnings per share was $1.11, a 24.7% increase from $0.892
- Adjusted diluted earnings per share was $1.121, a 24.4% increase from
$0.901, 2
- Opened 304 company-owned restaurants with 257 locations
including a Chipotlane, and three international licensed
restaurants
"Chipotle had another outstanding year, delivering strong
transaction driven comps each quarter, expanding margins, adding
over 300 new restaurants, gaining momentum in key industry leading
brand metrics, making progress on many restaurant operating
initiatives and building our footprint internationally," said
Scott Boatwright, CEO, Chipotle. "I
want to make sure that as we continue to scale Chipotle, everything
we do is in service of our guests or those who serve our guests
which will enable us to achieve our long-term ambitious goals of
reaching 7,000 restaurants in North
America, growing our AUVs beyond $4
million, expanding margins and making progress toward
becoming a global iconic brand."
Results for the three months ended December 31,
2024:
Total revenue in the fourth quarter of 2024 was $2.8 billion, an increase of 13.1% compared to
the fourth quarter of 2023. The increase in total revenue was
driven by new restaurant openings and a 5.4% increase in comparable
restaurant sales due to higher transactions of 4.0% and a 1.4%
increase in average check. Digital sales represented 34.4% of total
food and beverage revenue.
During the fourth quarter we opened 119 company-owned
restaurants, of which 95 included a Chipotlane, and one
international licensed restaurant. Chipotlanes continue to perform
well and are helping enhance guest access and convenience, as well
as increase new restaurant sales, margins, and returns.
Food, beverage and packaging costs in the fourth quarter of 2024
were 30.4% of total revenue, an increase from 29.7% in the fourth
quarter of 2023. The increase was primarily due to higher usage of
ingredients as we focused on ensuring consistent and generous
portions, a protein mix shift from the success of our Smoked
Brisket limited time offer, and to a lesser extent, inflation
across several items including higher avocado and dairy costs. This
increase was partially offset by the benefit of menu price
increases.
Labor costs in the fourth quarter of 2024 were 25.2% of total
revenue, an increase from 25.0% in the fourth quarter of 2023. Wage
inflation, including minimum wage increases for our restaurants in
California, was mostly offset by
the benefit from sales leverage.
General and administrative expenses for the fourth quarter of
2024 were $191.2 million, compared to
$169.2 million in the fourth quarter
of 2023. The increase was primarily due to stock-based
compensation, employee wages, and legal reserves. On a non-GAAP
basis, general and administrative expenses for the fourth quarter
of 2024 were $174.9
million1, compared to $170.0 million1 in the fourth quarter
of 2023.
The effective income tax rate for the fourth quarter of 2024 was
24.4%, a decrease from 26.2% in the fourth quarter of 2023. The
decrease was primarily driven by reductions to nondeductible
expenses, partially offset by a decrease in tax benefits related to
option exercises and equity vesting.
Net income for the fourth quarter of 2024 was $331.8 million, or $0.24 per diluted share, compared to $282.1 million, or $0.202 per diluted share in the fourth
quarter of 2023. Adjusted net income for the fourth quarter of 2024
was $340.0 million1, or
$0.251 per adjusted
diluted share, compared to $286.2
million1, or $0.211, 2 per adjusted diluted share
in the fourth quarter of 2023.
During the fourth quarter of 2024 we repurchased $331.3 million of stock at an average price per
share of $59.83. As of
December 31, 2024, $1.0 billion
remained available under share repurchase authorizations from our
Board of Directors, including an additional $300 million in additional authorizations
approved by our Board of Directors on December 17, 2024. The
repurchase authorization may be modified, suspended, or
discontinued at any time.
Results for the full year ended December 31,
2024:
Total revenue for 2024 was $11.3
billion, an increase of 14.6% compared to 2023. The increase
in total revenue was driven by new restaurant openings and a 7.4%
increase in comparable restaurant sales due to higher transactions
of 5.3% and a 2.1% increase in average check. Digital sales
represented 35.1% of total food and beverage revenue.
During 2024 we opened 304 company-owned restaurants, bringing
the total restaurant count at year-end to 3,726. Of the 304
restaurants opened during the year, 257 included a Chipotlane. We
had a total of 1,068 Chipotlanes as of year-end. Additionally,
three international licensed restaurants were opened.
Food, beverage and packaging costs for 2024 were 29.8% of total
revenue, an increase from 29.5% in 2023. The increase was due to
higher usage of ingredients as we focused on ensuring consistent
and generous portions, inflation across several ingredients,
primarily avocados, and a protein mix shift from the success of our
Smoked Brisket limited time offer and a Braised Beef Barbacoa
marketing initiative. This increase was partially offset by the
benefit of menu price increases.
Labor costs for 2024 were 24.7% of total revenue, in line with
24.7% in 2023. The benefit from sales leverage was offset by wage
inflation including minimum wage increases for our restaurants in
California.
General and administrative expenses for 2024 were $697.5 million, compared to $633.6 million for 2023. The increase was
primarily due to employee wages, expenses from the biennial All
Managers Conference, and legal reserves. On a non-GAAP basis
general and administrative expenses for 2024 were $686.8 million1 compared to
$629.6 million1 for
2023.
The effective income tax rate for 2024 was 23.7%, a decrease
from 24.2% in 2023. The decrease was primarily due to lower
nondeductible expenses and income tax reserves, partially offset by
a reduction in tax benefits related to option exercises and equity
vesting.
Net income for 2024 was $1.53
billion, or $1.11 per diluted
share, compared to $1.23 billion, or
$0.892 per diluted share
in 2023. Adjusted net income for 2024 was $1.54 billion1, or $1.121 per adjusted diluted share,
compared to $1.24
billion1, or $0.901, 2 per adjusted diluted share
in 2023.
During 2024 we repurchased $995.8
million of stock at an average price per share of
$57.21.
More information will be available in our Annual Report on Form
10-K, which will be filed with the SEC by the end of February 2025.
Outlook
For 2025, management is anticipating the following:
- Full year comparable restaurant sales growth in the low to
mid-single digit range
- 315 to 345 new company-owned restaurant openings with over 80%
having a Chipotlane
- An estimated underlying effective full year tax rate between
25% and 27% before discrete items
Definitions
The following definitions apply to these terms as used
throughout this release:
- Comparable restaurant sales, or sales comps, and comparable
restaurant transactions, represent the change in
period-over-period total revenue or transactions for restaurants in
operation for at least 13 full calendar months.
- Average restaurant sales refer to the average trailing
12-month food and beverage revenue for restaurants in operation for
at least 12 full calendar months.
- Restaurant level operating margin represents total
revenue less direct restaurant operating costs, expressed as a
percent of total revenue.
- Digital sales represent food and beverage revenue for
company-owned restaurants generated through the Chipotle website,
Chipotle app or third-party delivery aggregators. Digital sales
include revenue deferrals associated with Chipotle Rewards.
Conference Call Details
Chipotle will host a conference call on Tuesday,
February 4, 2025, at 4:30 PM Eastern
time to discuss fourth quarter and full year 2024 financial
results as well as provide a business update for the first quarter
2025.
The conference call can be accessed live over the phone by
dialing 1-888-317-6003, or for international callers by dialing
1-412-317-6061, and use code: 4898404. The call will be webcast
live from the company's website on the investor relations page at
ir.chipotle.com/events. An archived webcast will be available
approximately one hour after the end of the call.
About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better
world by serving responsibly sourced, classically-cooked, real food
with wholesome ingredients without artificial colors, flavors or
preservatives. There are over 3,700 restaurants as of
December 31, 2024, in the United
States, Canada, the
United Kingdom, France, Germany, Kuwait, and United
Arab Emirates and it is the only restaurant company of its
size that owns and operates all its restaurants in North America and Europe. Chipotle is ranked on the Fortune 500
and is recognized on Fortune's Most Admired Companies 2025 list and
Time Magazine's Most Influential Companies. With over 130,000
employees passionate about providing a great guest experience,
Chipotle is a longtime leader and innovator in the food industry.
Chipotle is committed to making its food more accessible to
everyone while continuing to be a brand with a demonstrated purpose
as it leads the way in digital, technology and sustainable business
practices. For more information or to place an order online, visit
WWW.CHIPOTLE.COM.
Forward-Looking Statements
Certain statements in this press release and in the
February 4, 2025, conference call are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995, including statements under "Outlook"
about our anticipated full year 2025 comparable restaurant sales
growth, number of new restaurant openings in 2025, and estimated
underlying effective 2025 full year tax rate, as well as statements
about our goal to have 7,000 restaurants in North America and expand internationally,
expected number of restaurants with Chipotlanes, our future food,
beverage, packaging, labor, general and administrative and other
costs, future estimated tax rates and future long-term prospects.
We use words such as "anticipate", "believe", "could", "should",
"may", "approximately", "estimate", "expect", "intend", "project",
"target", "goal" and similar terms and phrases, including
references to assumptions, to identify forward-looking statements.
The forward-looking statements in this press release are based on
currently available operating, financial and competitive
information available to us as of the date of this release and we
assume no obligation to update these forward-looking statements.
These statements are subject to risks and uncertainties that could
cause actual results to differ materially from those described in
the statements, including but not limited to: increasing wage
inflation including as a result of government regulations mandating
higher minimum wages, and the competitive labor market, which
impacts our ability to attract and retain qualified employees and
has resulted in occasional staffing shortages; the impact of any
union organizing efforts and our responses to such efforts;
increases in food, beverage, packaging and other operating costs
and the inability of our third-party suppliers and business
partners to fulfill their commitments due to inflation, global
conflicts, climate change, our Food with Integrity philosophy,
tariffs or trade restrictions and supply shortages; risks of food
safety incidents and food-borne illnesses; risks associated with
our reliance on certain information technology systems operated by
us or by third parties and potential failures, outages or
interruptions; privacy and cybersecurity risks, including risk of
breaches, unauthorized access, theft, modification, destruction or
ransom of guest or employee personal or confidential information
stored on our network or the network of third-party providers; the
impact of competition, including from sources outside the
restaurant industry; the impact of government regulations relating
to our employees, employment practices, restaurant design and
construction, and the sale of food or alcoholic beverages; our
ability to achieve our planned growth, such as the costs and
availability of suitable new restaurant sites and the equipment and
technology needed to fully outfit new restaurants, construction
materials and contractors and the expected costs to accelerate our
international expansion through licensed restaurants in the
Middle East; the uncertainty of
our ability to achieve expected levels of comparable restaurant
sales due to factors such as changes in guests' perceptions of our
brand, including as a result of actual or rumored food safety
concerns or other negative publicity, decreased overall consumer
spending, including as a result of high inflation, mass layoffs,
fears of possible recession and higher energy costs, or the
inability to increase menu prices or realize the benefits of menu
price increases; risks associated with our reliance on third party
delivery services; and risks relating to litigation, including
possible governmental actions and potential class action litigation
related to food safety incidents, cybersecurity incidents,
employment or privacy laws, advertising claims, contract disputes
or other matters; and other risk factors described from time to
time in our SEC reports, including our annual report on Form 10-K
and quarterly reports on Form 10-Q, all of which are available on
the investor relations page of our website at
ir.Chipotle.com.
|
1
|
Restaurant level operating margin, adjusted diluted
earnings per share, adjusted net income, non-GAAP general and
administrative expenses, adjusted depreciation and amortization,
and non-GAAP effective income tax rate are non-GAAP financial
measures. Reconciliations to GAAP measures and further information
are set forth in the table at the end of this press
release.
|
|
2
|
Prior period results have been retroactively adjusted
for the 50-for-1 stock split in June 2024.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
CONSOLIDATED
STATEMENTS OF INCOME
(in thousands,
except per share data)
(unaudited)
|
|
|
Three months ended
December 31,
|
|
2024
|
|
2023
|
|
Food and beverage
revenue
|
$ 2,829,988
|
|
99.5 %
|
|
$ 2,499,567
|
|
99.3 %
|
|
Delivery service
revenue
|
15,322
|
|
0.5
|
|
16,753
|
|
0.7
|
|
Total
revenue
|
2,845,310
|
|
100.0
|
|
2,516,320
|
|
100.0
|
|
Restaurant operating
costs (exclusive of depreciation
and amortization shown separately below):
|
|
|
|
|
|
|
|
|
Food, beverage and
packaging
|
866,252
|
|
30.4
|
|
747,155
|
|
29.7
|
|
Labor
|
716,865
|
|
25.2
|
|
629,228
|
|
25.0
|
|
Occupancy
|
146,442
|
|
5.1
|
|
131,167
|
|
5.2
|
|
Other operating
costs
|
411,490
|
|
14.5
|
|
370,466
|
|
14.7
|
|
General and
administrative expenses
|
191,216
|
|
6.7
|
|
169,247
|
|
6.7
|
|
Depreciation and
amortization
|
83,876
|
|
2.9
|
|
85,492
|
|
3.4
|
|
Pre-opening
costs
|
12,905
|
|
0.5
|
|
13,590
|
|
0.5
|
|
Impairment, closure
costs, and asset disposals
|
532
|
|
-
|
|
6,528
|
|
0.3
|
|
Total operating
expenses
|
2,429,578
|
|
85.4
|
|
2,152,873
|
|
85.6
|
|
Income from
operations
|
415,732
|
|
14.6
|
|
363,447
|
|
14.4
|
|
Interest and other
income, net
|
23,365
|
|
0.8
|
|
18,906
|
|
0.8
|
|
Income before income
taxes
|
439,097
|
|
15.4
|
|
382,353
|
|
15.2
|
|
Provision for income
taxes
|
107,333
|
|
3.8
|
|
100,267
|
|
4.0
|
|
Net income
|
$
331,764
|
|
11.7 %
|
|
$
282,086
|
|
11.2 %
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.24
|
|
|
|
$
0.21
|
|
|
|
Diluted
|
$
0.24
|
|
|
|
$
0.20
|
|
|
|
Weighted-average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
1,361,358
|
|
|
|
1,372,013
|
|
|
|
Diluted
|
1,368,923
|
|
|
|
1,381,059
|
|
|
|
|
Prior period results
have been retroactively adjusted for the 50-for-1 stock split in
June 2024.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
CONSOLIDATED
STATEMENTS OF INCOME
(in thousands,
except per share data)
|
|
|
Year ended December
31,
|
|
2024
|
|
2023
|
|
(unaudited)
|
|
|
|
Food and beverage
revenue
|
$
11,247,384
|
|
99.4 %
|
|
$ 9,804,124
|
|
99.3 %
|
|
Delivery service
revenue
|
66,469
|
|
0.6
|
|
67,525
|
|
0.7
|
|
Total
revenue
|
11,313,853
|
|
100.0
|
|
9,871,649
|
|
100.0
|
|
Restaurant operating
costs (exclusive of depreciation
and amortization shown separately below):
|
|
|
|
|
|
|
|
|
Food, beverage and
packaging
|
3,374,516
|
|
29.8
|
|
2,912,564
|
|
29.5
|
|
Labor
|
2,789,789
|
|
24.7
|
|
2,440,982
|
|
24.7
|
|
Occupancy
|
563,374
|
|
5.0
|
|
503,264
|
|
5.1
|
|
Other operating
costs
|
1,568,482
|
|
13.9
|
|
1,428,747
|
|
14.5
|
|
General and
administrative expenses
|
697,483
|
|
6.2
|
|
633,584
|
|
6.4
|
|
Depreciation and
amortization
|
335,030
|
|
3.0
|
|
319,394
|
|
3.2
|
|
Pre-opening
costs
|
41,897
|
|
0.4
|
|
36,931
|
|
0.4
|
|
Impairment, closure
costs, and asset disposals
|
26,949
|
|
0.2
|
|
38,370
|
|
0.4
|
|
Total operating
expenses
|
9,397,520
|
|
83.1
|
|
8,313,836
|
|
84.2
|
|
Income from
operations
|
1,916,333
|
|
16.9
|
|
1,557,813
|
|
15.8
|
|
Interest and other
income, net
|
93,897
|
|
0.8
|
|
62,693
|
|
0.6
|
|
Income before income
taxes
|
2,010,230
|
|
17.8
|
|
1,620,506
|
|
16.4
|
|
Provision for income
taxes
|
476,120
|
|
4.2
|
|
391,769
|
|
4.0
|
|
Net income
|
$ 1,534,110
|
|
13.6 %
|
|
$ 1,228,737
|
|
12.4 %
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.12
|
|
|
|
$
0.89
|
|
|
|
Diluted
|
$
1.11
|
|
|
|
$
0.89
|
|
|
|
Weighted-average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
1,368,343
|
|
|
|
1,377,768
|
|
|
|
Diluted
|
1,376,555
|
|
|
|
1,385,500
|
|
|
|
|
Prior period results have been retroactively adjusted
for the 50-for-1 stock split in June 2024.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands,
except per share data)
|
|
|
December
31,
|
|
2024
|
|
2023
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
748,537
|
|
$
560,609
|
|
Accounts receivable,
net
|
143,963
|
|
115,535
|
|
Inventory
|
48,942
|
|
39,309
|
|
Prepaid expenses and
other current assets
|
97,538
|
|
117,462
|
|
Income tax
receivable
|
67,229
|
|
52,960
|
|
Investments
|
674,378
|
|
734,838
|
|
Total current
assets
|
1,780,587
|
|
1,620,713
|
|
Leasehold improvements,
property and equipment, net
|
2,390,126
|
|
2,170,038
|
|
Long-term
investments
|
868,025
|
|
564,488
|
|
Restricted
cash
|
29,842
|
|
25,554
|
|
Operating lease
assets
|
4,000,127
|
|
3,578,548
|
|
Other assets
|
113,728
|
|
63,082
|
|
Goodwill
|
21,939
|
|
21,939
|
|
Total assets
|
$ 9,204,374
|
|
$ 8,044,362
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
210,695
|
|
$
197,646
|
|
Accrued payroll and
benefits
|
261,913
|
|
227,537
|
|
Accrued
liabilities
|
179,747
|
|
147,688
|
|
Unearned
revenue
|
238,577
|
|
209,680
|
|
Current operating
lease liabilities
|
277,836
|
|
248,074
|
|
Total current
liabilities
|
1,168,768
|
|
1,030,625
|
|
Long-term operating
lease liabilities
|
4,262,782
|
|
3,803,551
|
|
Deferred income tax
liabilities
|
46,208
|
|
89,109
|
|
Other
liabilities
|
71,070
|
|
58,870
|
|
Total
liabilities
|
5,548,828
|
|
4,982,155
|
|
Shareholders'
equity:
|
|
|
|
|
Preferred stock, $0.01
par value, 600,000 shares authorized, no shares issued as of
December 31, 2024 and December 31, 2023,
respectively
|
-
|
|
-
|
|
Common stock, $0.01
par value, 11,500,000 shares authorized, 1,358,751 and
1,874,139 shares issued as of December 31, 2024 and
December 31, 2023, respectively
|
13,586
|
|
18,741
|
|
Additional paid-in
capital
|
2,078,010
|
|
1,937,794
|
|
Treasury stock, at
cost, 0 and 502,843 common shares as of December 31, 2024
and December 31, 2023, respectively
|
-
|
|
(4,944,656)
|
|
Accumulated other
comprehensive loss
|
(10,282)
|
|
(6,657)
|
|
Retained
earnings
|
1,574,232
|
|
6,056,985
|
|
Total shareholders'
equity
|
3,655,546
|
|
3,062,207
|
|
Total liabilities and
shareholders' equity
|
$ 9,204,374
|
|
$ 8,044,362
|
|
|
Prior period results have been retroactively adjusted
for the 50-for-1 stock split in June 2024.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in
thousands)
|
|
|
Year ended December
31,
|
|
2024
|
|
2023
|
|
(unaudited)
|
|
|
|
Operating
activities
|
|
|
|
|
Net income
|
$ 1,534,110
|
|
$ 1,228,737
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
335,030
|
|
319,394
|
|
Deferred income tax
provision
|
(42,937)
|
|
(9,505)
|
|
Impairment, closure
costs, and asset disposals
|
24,582
|
|
37,025
|
|
Provision for credit
losses
|
215
|
|
1,570
|
|
Stock-based
compensation expense
|
131,730
|
|
124,016
|
|
Other
|
(3,472)
|
|
(13,080)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(29,274)
|
|
(11,216)
|
|
Inventory
|
(9,797)
|
|
(3,649)
|
|
Prepaid expenses and
other current assets
|
9,244
|
|
(39,211)
|
|
Operating lease
assets
|
285,587
|
|
254,241
|
|
Other
assets
|
(17,690)
|
|
4,204
|
|
Accounts
payable
|
8,467
|
|
5,313
|
|
Accrued payroll and
benefits
|
34,857
|
|
57,048
|
|
Accrued
liabilities
|
27,284
|
|
3,188
|
|
Unearned
revenue
|
46,139
|
|
35,685
|
|
Income tax
payable/receivable
|
(14,363)
|
|
(5,237)
|
|
Operating lease
liabilities
|
(217,894)
|
|
(214,477)
|
|
Other long-term
liabilities
|
3,258
|
|
9,431
|
|
Net cash provided by
operating activities
|
2,105,076
|
|
1,783,477
|
|
Investing
activities
|
|
|
|
|
Purchases of leasehold
improvements, property and equipment
|
(593,603)
|
|
(560,731)
|
|
Purchases of
investments
|
(986,673)
|
|
(1,115,131)
|
|
Maturities of
investments
|
722,637
|
|
729,853
|
|
Proceeds from sale of
equipment
|
20,113
|
|
-
|
|
Net cash used in
investing activities
|
(837,526)
|
|
(946,009)
|
|
Financing
activities
|
|
|
|
|
Repurchase of common
stock
|
(1,001,559)
|
|
(592,349)
|
|
Tax withholding on
stock-based compensation awards
|
(74,229)
|
|
(69,146)
|
|
Other financing
activities
|
2,089
|
|
843
|
|
Net cash used in
financing activities
|
(1,073,699)
|
|
(660,652)
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(1,635)
|
|
381
|
|
Net change in cash,
cash equivalents, and restricted cash
|
192,216
|
|
177,197
|
|
Cash, cash equivalents,
and restricted cash at beginning of year
|
586,163
|
|
408,966
|
|
Cash, cash equivalents,
and restricted cash at end of year
|
$
778,379
|
|
$
586,163
|
|
Supplemental
disclosures of cash flow information
|
|
|
|
|
Income taxes
paid
|
$
532,862
|
|
$
400,229
|
|
Purchases of leasehold
improvements, property and equipment accrued in accounts
payable and accrued liabilities
|
$
82,636
|
|
$
76,415
|
|
Repurchase of common
stock accrued in accounts payable and accrued
liabilities
|
$
7,279
|
|
$
5,643
|
|
CHIPOTLE MEXICAN
GRILL, INC.
SUPPLEMENTAL
FINANCIAL AND OTHER DATA
(dollars in
thousands)
(unaudited)
|
|
|
|
For the three months
ended
|
|
|
Dec. 31,
2024
|
|
Sep. 30,
2024
|
|
Jun. 30,
2024
|
|
Mar. 31,
2024
|
|
Dec. 31,
2023
|
|
Company-owned
restaurants opened
|
|
119
|
|
86
|
|
52
|
|
47
|
|
121
|
|
Chipotle permanent
closures
|
|
(2)
|
|
(1)
|
|
(1)
|
|
(3)
|
|
(2)
|
|
Chipotle
relocations
|
|
(6)
|
|
-
|
|
-
|
|
(2)
|
|
(3)
|
|
Company-owned
restaurants at end of period
|
|
3,726
|
|
3,615
|
|
3,530
|
|
3,479
|
|
3,437
|
|
Average restaurant
sales
|
|
$
3,213
|
|
$
3,184
|
|
$
3,146
|
|
$
3,082
|
|
$
3,018
|
|
Comparable restaurant
sales increase
|
|
5.4 %
|
|
6.0 %
|
|
11.1 %
|
|
7.0 %
|
|
8.4 %
|
|
|
|
|
|
For the three months
ended
|
|
|
Dec. 31,
2024
|
|
Sep. 30,
2024
|
|
Jun. 30,
2024
|
|
Mar. 31,
2024
|
|
Dec. 31,
2023
|
|
Licensed restaurants
opened
|
|
1
|
|
1
|
|
1
|
|
-
|
|
-
|
|
Licensed restaurants at
end of period
|
|
3
|
|
2
|
|
1
|
|
-
|
|
-
|
CHIPOTLE MEXICAN GRILL,
INC.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
Below are definitions of the non-GAAP financial measures in this
release. The following tables provide a reconciliation of non-GAAP
financial measures presented in this release to the most directly
comparable financial measures calculated and presented in
accordance with GAAP.
Adjusted net income is net income excluding expenses related to
restaurant and corporate asset impairment, software asset
impairment, corporate restructuring, legal proceedings, stock-based
compensation forfeiture, stock-based compensation retention grants,
accelerated depreciation and investments. Adjusted general and
administrative expense is general and administrative expense
excluding expenses related to corporate restructuring, certain
legal proceedings, stock-based compensation forfeiture, and
stock-based compensation retention grants. Adjusted depreciation
and amortization is depreciation and amortization expense excluding
certain accelerated depreciation expense. The adjusted effective
income tax rate is the effective income tax rate adjusted to
reflect the after tax impact of non-GAAP adjustments. Restaurant
level operating margin is equal to the revenues generated by our
restaurants less their direct operating costs which consist of
food, beverage and packaging, labor, occupancy and other operating
costs. This performance measure primarily includes the costs that
restaurant level managers can directly control and excludes other
costs that are essential to conduct our business. Management uses
restaurant level operating margin as a measure of restaurant
performance. Management believes restaurant level operating margin
is useful to investors in that it highlights trends in our core
business that may not otherwise be apparent to investors when
relying solely on GAAP financial measures. We present these
non-GAAP measures in order to facilitate meaningful evaluation of
our operating performance across periods. These adjustments are
intended to provide greater transparency of underlying performance
and to allow investors to evaluate our business on the same basis
as our management, which uses these non-GAAP measures in evaluating
the company's performance. Our adjusted net income, adjusted
diluted earnings per share, adjusted general and administrative
expenses, adjusted effective income tax rate and restaurant level
operating margin measures may not be comparable to other companies'
adjusted measures. These adjustments are not necessarily indicative
of what our actual financial performance would have been during the
periods presented and should be viewed in addition to, and not as
an alternative to, our results prepared in accordance with GAAP.
Further details regarding these adjustments are included in the
tables below.
|
CHIPOTLE MEXICAN
GRILL, INC.
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
Adjusted Net Income
and Adjusted Diluted Earnings per Share
(in thousands,
except per share amounts)
(unaudited)
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
|
$
331,764
|
|
$
282,086
|
|
$ 1,534,110
|
|
$ 1,228,737
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Impairment and exit
costs:
|
|
|
|
|
|
|
|
|
Restaurant asset
impairment and other restaurant exit costs(1)
|
2,634
|
|
-
|
|
2,634
|
|
4,765
|
|
Corporate operating
lease asset impairment and
other corporate costs(2)
|
(7,392)
|
|
-
|
|
(7,392)
|
|
3,735
|
|
Software asset
impairment(3)
|
-
|
|
-
|
|
6,249
|
|
-
|
|
Corporate
Restructuring:
|
|
|
|
|
|
|
|
|
Employee related and
other restructuring costs(4)
|
-
|
|
-
|
|
-
|
|
4,829
|
|
Legal
proceedings(5)
|
4,387
|
|
(797)
|
|
21,437
|
|
(797)
|
|
Stock-based
compensation forfeiture(6)
|
-
|
|
-
|
|
(27,863)
|
|
-
|
|
Stock-based
compensation retention grants(7)
|
11,945
|
|
-
|
|
17,079
|
|
-
|
|
Accelerated
depreciation(8)
|
-
|
|
6,388
|
|
-
|
|
6,388
|
|
Investment(9)
|
-
|
|
-
|
|
1,381
|
|
-
|
|
Total non-GAAP
adjustments
|
11,574
|
|
5,591
|
|
13,525
|
|
18,920
|
|
Tax effect of non-GAAP
adjustments above(10)
|
(3,386)
|
|
(1,495)
|
|
(8,804)
|
|
(4,607)
|
|
After tax impact of
non-GAAP adjustments
|
8,188
|
|
4,096
|
|
4,721
|
|
14,313
|
|
Adjusted net
income
|
$
339,952
|
|
$
286,182
|
|
$ 1,538,831
|
|
$ 1,243,050
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average number of common shares outstanding
|
1,368,923
|
|
1,381,059
|
|
1,376,555
|
|
1,385,500
|
|
Diluted earnings per
share
|
$
0.24
|
|
$
0.20
|
|
$
1.11
|
|
$
0.89
|
|
Adjusted diluted
earnings per share
|
$
0.25
|
|
$
0.21
|
|
$
1.12
|
|
$
0.90
|
|
|
|
(1)
|
Operating lease asset
and leasehold improvements, property, plant and equipment
impairment charges and other expenses for restaurants due to
closures, relocations, or underperformance.
|
|
(2)
|
Operating lease asset
and leasehold improvements, property, plant and equipment
impairment charges and other (gains)/expenses for offices or other
corporate assets.
|
|
(3)
|
Property and equipment
impairment charges related to a software asset.
|
|
(4)
|
Charges for third-party
vendors, stock-based compensation, and employee severance related
to the May 2023 optimization of our organizational
structure.
|
|
(5)
|
Charges/(reduction) for
estimated settlements for distinct legal matters that exceeded or
are expected to exceed typical costs for these types of legal
proceedings.
|
|
(6)
|
Stock-based
compensation expense reversal for equity awards forfeited by our
former CEO.
|
|
(7)
|
Stock-based
compensation expense for retention equity awards granted to key
executives in connection with the CEO transition.
|
|
(8)
|
Accelerated
depreciation due to a reduction of the estimated useful lives for
certain leasehold improvements.
|
|
(9)
|
Unrealized loss/(gain),
net in a long-term investment.
|
|
(10)
|
Adjustments relate to
the tax effect of non-GAAP adjustments, which were determined based
on the nature of the underlying non-GAAP adjustments and their
relevant jurisdictional tax rates.
|
|
|
Prior period results
have been retroactively adjusted for the 50-for-1 stock split in
June 2024.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
Adjusted General and
Administrative Expenses
(in
thousands)
(unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
General and
administrative expenses
|
$
191,216
|
|
$
169,247
|
|
$
697,483
|
|
$
633,584
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Restructuring
expense(1)
|
-
|
|
-
|
|
-
|
|
(4,829)
|
|
Legal
proceedings(2)
|
(4,387)
|
|
797
|
|
(21,437)
|
|
797
|
|
Stock-based
compensation forfeiture(3)
|
-
|
|
-
|
|
27,863
|
|
-
|
|
Stock-based
compensation retention grants(4)
|
(11,945)
|
|
-
|
|
(17,079)
|
|
-
|
|
Total non-GAAP
adjustments
|
(16,332)
|
|
797
|
|
(10,653)
|
|
(4,032)
|
|
Adjusted general and
administrative expenses
|
$
174,884
|
|
$
170,044
|
|
$
686,830
|
|
$
629,552
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Charges for third-party
vendors, stock-based compensation, and employee severance related
to the May 2023 optimization of our organizational
structure.
|
|
(2)
|
(Charges)/reduction for
estimated settlements for distinct legal matters that exceeded or
are expected to exceed typical costs for these types of legal
proceedings.
|
|
(3)
|
Stock-based
compensation expense reversal for equity awards forfeited by our
former CEO.
|
|
(4)
|
Stock-based
compensation expense for retention equity awards granted to key
executives in connection with the CEO transition.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
Adjusted
Depreciation and Amortization
(in
thousands)
(unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Depreciation and
amortization
|
$
83,876
|
|
$
85,492
|
|
$
335,030
|
|
$
319,394
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
Accelerated
depreciation(1)
|
-
|
|
(6,388)
|
|
-
|
|
(6,388)
|
|
Total non-GAAP
adjustments
|
-
|
|
(6,388)
|
|
-
|
|
(6,388)
|
|
Adjusted depreciation
and amortization
|
$
83,876
|
|
$
79,104
|
|
$
335,030
|
|
$
313,006
|
|
Adjusted depreciation
and amortization as a percent of total revenue
|
2.9 %
|
|
3.1 %
|
|
3.0 %
|
|
3.2 %
|
|
|
|
(1)
|
Accelerated
depreciation due to a reduction of the estimated useful lives for
certain leasehold improvements.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
Adjusted Effective
Income Tax Rate
(unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Effective income tax
rate
|
24.4 %
|
|
26.2 %
|
|
23.7 %
|
|
24.2 %
|
|
Tax impact of non-GAAP
adjustments(1)
|
0.2
|
|
-
|
|
0.3
|
|
-
|
|
Adjusted effective
income tax rate
|
24.6 %
|
|
26.2 %
|
|
24.0 %
|
|
24.2 %
|
|
|
|
(1)
|
Adjustments relate to
the tax effect of non-GAAP adjustments, which were determined based
on the nature of the underlying non-GAAP adjustments and their
relevant jurisdictional tax rates.
|
|
CHIPOTLE MEXICAN
GRILL, INC.
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
Restaurant Level
Operating Margin
(in
thousands)
(unaudited)
|
|
|
Three months ended
December 31,
|
|
2024
|
|
Percent of
total
revenue
|
|
2023
|
|
Percent of
total
revenue
|
|
Income from
operations
|
$
415,732
|
|
14.6 %
|
|
$
363,447
|
|
14.4 %
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
191,216
|
|
6.7
|
|
169,247
|
|
6.7
|
|
Depreciation and
amortization
|
83,876
|
|
2.9
|
|
85,492
|
|
3.4
|
|
Pre-opening
costs
|
12,905
|
|
0.5
|
|
13,590
|
|
0.5
|
|
Impairment, closure
costs, and asset disposals
|
532
|
|
-
|
|
6,528
|
|
0.3
|
|
Total non-GAAP
Adjustments
|
288,529
|
|
10.1
|
|
274,857
|
|
10.9
|
|
Restaurant level
operating margin
|
$
704,261
|
|
24.8 %
|
|
$
638,304
|
|
25.4 %
|
|
|
Year ended December
31,
|
|
2024
|
|
Percent of
total
revenue
|
|
2023
|
|
Percent of
total
revenue
|
|
Income from
operations
|
$
1,916,333
|
|
16.9 %
|
|
$
1,557,813
|
|
15.8 %
|
|
Non-GAAP
Adjustments
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
697,483
|
|
6.2
|
|
633,584
|
|
6.4
|
|
Depreciation and
amortization
|
335,030
|
|
3.0
|
|
319,394
|
|
3.2
|
|
Pre-opening
costs
|
41,897
|
|
0.4
|
|
36,931
|
|
0.4
|
|
Impairment, closure
costs, and asset disposals
|
26,949
|
|
0.2
|
|
38,370
|
|
0.4
|
|
Total non-GAAP
Adjustments
|
1,101,359
|
|
9.7
|
|
1,028,279
|
|
10.4
|
|
Restaurant level
operating margin
|
$
3,017,692
|
|
26.7 %
|
|
$
2,586,092
|
|
26.2 %
|
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SOURCE Chipotle Mexican Grill, Inc.
