Q3 2024 Chipotle Mexican Grill Inc Earnings Call Transcript
Key Points
- Chipotle Mexican Grill Inc (CMG) reported a 13% increase in sales, reaching $2.8 billion for the third quarter, driven by a 6% comp growth and over 3% transaction growth.
- The company opened 86 new restaurants, including 73 Chipotlanes, indicating strong expansion efforts.
- Digital sales accounted for 34% of total sales, showcasing the company's successful digital strategy.
- Chipotle Mexican Grill Inc (CMG) is rolling out new technology, such as a produce slicer and dual-sided plancha, to improve efficiency and throughput in restaurants.
- The company is maintaining its full-year guidance of mid- to high single-digit comps, reflecting confidence in continued growth.
- Restaurant-level margin decreased by 80 basis points year over year to 25.5%, indicating pressure on profitability.
- Cost of sales increased by 90 basis points due to inflation in items like avocados and dairy, as well as higher usage and mix impact from premium offerings.
- Labor costs are expected to remain high due to wage inflation, particularly in California, impacting overall cost structure.
- The company faces challenges in executing throughput improvements, with only 60% of restaurants having the expo position in place.
- Chipotle Mexican Grill Inc (CMG) is experiencing some regional performance issues, particularly in California, following the FAST Act price increase.
Good day and welcome to the Chipotle Mexican Grill third-quarter 2024 results conference call. (Operator Instructions)
Please note, today's event is being recorded. I would now like to turn the conference over to Cindy Olsen, Head of Investor Relations and Strategy. Please go ahead.
Hello, everyone, and welcome to our third quarter of fiscal 2024 earnings call. By now, you should have access to our earnings press release. If not, it may be found on our Investor Relations website at ir.chipotler.com.
I will begin by reminding you that certain statements and projections made in this presentation about our future business and financial results constitute forward-looking statement. These statements are based on management's current business and market expectations, and our actual results could differ materially from those projected in forward-looking statements. Please see the risk factors contained in our annual report on Form 10-K and in our Form 10-Q for a discussion of risks that
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
