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Newport Beach-based Chipotle Mexican Grill, Inc. has issued a press release that reports positive financial results for its second quarter that ended June 30, 2024.
Second quarter highlights, year over year:
- Total revenue increased 18.2% to $3.0 billion
- Comparable restaurant sales increased 11.1%
- Operating margin was 19.7%, an increase from 17.2%
- Restaurant level operating margin was 28.9%, an increase of 140 basis points
- Opened 52 new company-operated restaurants with 46 locations including a Chipotlane, and one international licensed restaurant
“The second quarter was outstanding as successful brand marketing, including the return of Chicken Al Pastor, drove strong demand to our restaurants. Our focus and training around throughput paid off as we were able to meet the stronger demand trends with terrific service and speed driving over eight percent transaction growth in the quarter,” stated Brian Niccol, Chairman and CEO of Chipotle, in the press release.
Results for the three months ended June 30, 2024:
According to the Chipotle press release, total revenue in the second quarter was $3.0 billion, an increase of 18.2% compared to the second quarter of 2023. The increase in total revenue was driven by new restaurant openings and an 11.1% increase in comparable restaurant sales due to higher transactions of 8.7% and a 2.4% increase in average check. Digital sales represented 35.3% of total food and beverage revenue.
During the second quarter Chipotle opened 52 new company-operated restaurants, of which 46 included a Chipotlane, and one international licensed restaurant. These formats 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 second quarter of 2024 were 29.4% of total revenue, in line with the second quarter of 2023. The benefit of last year’s menu price increase was partially offset by inflation of avocados, and, to a lesser extent, increased oil usage for frying chips and higher incidence of beef as a result of the continued success of our Braised Beef Barbacoa marketing initiative.
Net income for the second quarter was $455.7 million, or $0.33 per diluted share, compared to $341.8 million, or $0.25 per diluted share in the second quarter of 2023. In the second quarter of 2024, excluding the $0.01 after-tax impact from an unrealized loss on a long-term investment and an increase in legal reserves, adjusted net income was $463.0 million and adjusted diluted earnings per share was $0.34.
During the second quarter Chipotle repurchased $151.4 million of stock at an average price per share of $63.52.
Outlook
For 2024, management is anticipating the following:
- Full year comparable restaurant sales growth in the mid to high-single digit range
- 285 to 315 new restaurant openings with over 80% having a Chipotlane
- An estimated underlying effective full year tax rate between 25% and 27% before discrete items
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 3,500 restaurants as of June 30, 2024, in the United States, Canada, the United Kingdom, France, Germany, and Kuwait 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 2024 list and Time Magazine’s Most Influential Companies. With over 120,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and I, visit www.Chipotle.com.
