Chipotle (CMG) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 13% year-over-year to $2.8 billion, driven by 6% comparable sales growth and higher transaction volume.

• Diluted EPS rose 21.7% to $0.28, benefiting from CEO equity award forfeitures, retention grants, and investment gains.

• Opened 86 new restaurants in Q3, including 73 Chipotlanes and one licensed international location.

• Digital sales accounted for 34% of total revenue.

• Leadership transition was seamless, with strong support for the interim CEO and a focus on continuity of strategy and culture.

Financial highlights

• Comparable restaurant sales grew 6% year-over-year, with transaction growth of 3.3% and a 2.7% increase in average check.

• Restaurant-level margin was 25.5%, down 80 basis points year-over-year.

• Net income for Q3 2024 was $387.4 million, up from $313.2 million in Q3 2023.

• Operating income for Q3 2024 was $473.3 million, up from $395.0 million year-over-year.

• Adjusted diluted EPS was $0.27, up 17% year-over-year, reflecting CEO transition-related adjustments.

Outlook and guidance

• Maintaining full-year guidance of mid to high single-digit comparable sales growth.

• Expecting 285–315 new restaurant openings in 2024 and 315–345 in 2025, with at least 80% including a Chipotlane.

• Q4 comps expected in the mid-5% range, with transaction comps modestly accelerating from Q3.

• Cost of sales in Q4 anticipated just above 31% due to Smoked Brisket LTO; labor costs expected in the low 25% range.

• Estimated underlying effective full-year tax rate between 24% and 26% before discrete items.