Chipotle Stock Price Down as Earnings Come in Mixed

Chipotle Mexican Grill's stock (NYSE:CMG) is trading down 2.9% today as the firm released a mixed Q4 2024 earnings report. The company's fiscal year 2024 was marked by a 15% sales increase, culminating in $11.3 billion in revenue. This growth is accompanied by a solid increase in digital sales and strategic expansion efforts, yet revenue slightly missed market expectations.

Revenue for the quarter came in at $2.85 billion, just 0.19% below the street consensus, whilst EPS came in on expectations at $0.25.

In fiscal year 2024, Chipotle experienced a 7.4% growth in annual comparable sales, supported by over 5% transaction growth. Digital sales were a major contributor, accounting for $3.9 billion, or 35% of total sales. The company's Annual Average Unit Volumes (AUVs) reached $3.2 million, demonstrating operational efficiency and customer loyalty.

Despite some margin pressures, Chipotle improved its annual restaurant-level margin by 50 basis points to 26.7%. Furthermore, the company achieved a 24% growth in adjusted diluted earnings per share (EPS), reaching $1.12. These impressive financial metrics reflect Chipotle's effective adaptation to market demands and cost management strategies.

The fourth quarter of 2024 also showed positive momentum, with revenues hitting $2.85 billion—a 13% increase year-on-year. However, the Q4 restaurant-level margin saw a slight decline, down 60 basis points to 24.8%. Despite this, adjusted diluted EPS grew by 19% to $0.25 compared to the previous year, indicating strong underlying performance.

Expansion played a critical role in Chipotle's 2024 strategy, with the opening of 304 new restaurants, including 257 Chipotlanes. In Q4 alone, the company opened 119 new restaurants, with 95 featuring the drive-thru Chipotlane format. This expansion aligns with Chipotle's goal of bolstering convenience and increasing market share.