Chipotle Meets Q4 Expectations Despite Headwinds, Guides Conservatively
Key Highlights:
* Same-store sales growth: 5.4% in Q4, 7.4% for fiscal year 2024
* Revenue: $2.85 billion in Q4, $11.3 billion for fiscal year 2024
* Adjusted earnings per share: $0.25 in Q4, $1.12 for fiscal year 2024
Challenges and Opportunities:
* Inclement weather and tough comparisons to previous quarters
* New CEO Scott Boatwright emphasizes transaction-driven growth and margin expansion
* Company plans to open between 315-345 new locations in fiscal year 2025
* Potential impact of tariffs on Mexican imports could lead to a 60 basis point increase in cost of sales
Menu Innovations and Technology:
* Chipotle Honey Chicken pilot a success, hinting at future limited-time offerings
* Introduction of a digital makeline to enhance throughput
* Autocado robot and other new equipment aimed at improving efficiency
Analyst Outlook:
* Stifel's Chris O'Cull considers guidance conservative, expecting higher same-store sales growth
* Deutsche Bank's Lauren Silberman highlights underlying strength and innovation pipeline
* Analysts emphasize throughput as a key traffic driver
Company Guidance:
* Same-store sales growth expected to be in the low- to mid-single-digit range for fiscal year 2025
* Steady prices projected for 2025, with potential adjustments based on inflation
Additional Note:
* Brooke DiPalma is a senior reporter for Yahoo Finance.