Chipotle Mexican Grill Logo (PRNewsfoto/Chipotle Mexican Grill)

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 $0.21^{1, 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 $0.90^{1, 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 $0.21^{1, 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 $0.90^{1, 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.