Chipotle (CMG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 18.2% year-over-year to $3.0 billion, driven by 11.1% comparable sales growth and 8.7% higher transactions.

• Net income increased to $455.7 million, with diluted EPS up 32% to $0.33; adjusted EPS was $0.34, up 36%.

• Opened 53 new restaurants (52 company-operated, 1 licensed international), 46 with Chipotlanes; on track for 285-315 new openings in 2024.

• Digital sales accounted for 35.3% of total sales.

• Leadership transition: Jack Hartung retiring as CFO, Adam Rymer named successor.

Financial highlights

• Comparable restaurant sales grew 11.1% year-over-year; transactions up 8.7%.

• Restaurant-level margin reached 28.9%, up 140 basis points year-over-year.

• Operating margin expanded to 19.7% from 17.2% year-over-year.

• Repurchased $151 million in stock in Q2; $647.7 million remains authorized.

• Ended quarter with $2.5 billion in cash and no debt.

Outlook and guidance

• Maintaining full-year comp sales growth guidance of mid- to high-single digits.

• Expecting 285-315 new restaurant openings in 2024, with over 80% featuring Chipotlanes.

• Q3 restaurant-level margin expected around 25% due to seasonal and temporary cost pressures.

• No further price increases planned for 2024 barring unforeseen inflation.

• Estimated effective full-year tax rate between 25% and 27%.