Chipotle Q4 Earnings Exceed Estimates, Provides Guidance for 2025
Key Highlights:
* Same-store sales growth: 5.4% in Q4, 7.4% for the full year
* Adjusted earnings per share: $0.25, in line with estimates
* Revenue: $2.85 billion, matching expectations
* Plans to open 315-345 new locations in 2025
Outlook for 2025:
* Low- to mid-single-digit range growth in same-store sales
* Steady pricing expectations
* Focus on innovation, including the success of the Chipotle Honey Chicken limited-time offering
* Expansion of throughput-enhancing technologies, such as the digital makeline and Autocado
Market Reaction:
* Shares of Chipotle (CMG) initially dropped 5% in after-hours trading
* Some analysts view the guidance as conservative, expecting higher same-store sales growth
Additional Observations:
* Food, beverage, and packaging costs increased to 30.4% of revenue due to portion consistency, protein mix shifts, and inflation
* Only 2% of Chipotle's cost of sales originate from Mexico, where tariffs are set to take effect
* The company intends to leverage automation to fulfill online orders, which account for 65% of bowl and salad purchases