Chipotle Q4 Earnings: Revenue Miss, EPS Beat, Focus On 'Generous Portions' Drives Food Costs Higher, Shares Slide

Chipotle Mexican Grill, Inc CMG reported fourth-quarter financial results after the market close on Tuesday. Here’s a rundown of the report.

Q4 Earnings: Chipotle reported fourth-quarter revenue of $2.845 billion, missing the consensus estimate of $2.847 billion, according to Benzinga Pro. The fast-casual restaurant chain company reported adjusted earnings of 25 cents per share, beating analyst estimates of 24 cents per share.

Total revenue was up 13.1% on a year-over-year basis. Comparable restaurant sales increased 5.4% year-over-year, driven by higher transactions of 4% and a 1.4% increase in average check. Digital sales represented 34.4% of food and beverage revenue. Operating margin was 14.6% in the fourth quarter, up from 14.4% year-over-year. 

Food, beverage and packaging costs in the fourth quarter were 30.4% of total revenue, up from 29.7% in the fourth quarter of 2023. Chipotle said the increase was primarily due to higher usage of ingredients as the company “focused on ensuring consistent and generous portions.”

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Chipotle said it opened 119 new restaurants in the quarter, and 95 of those locations included a Chipotlane. The company also repurchased $331.3 million of its stock during the fourth quarter and said it has $1 billion remaining under its share repurchase authorization.

“Chipotle had another outstanding year, delivering strong transaction-driven comps each quarter, expanding margins, adding over 300 new restaurants, gaining momentum in key industry-leading brand metrics, making progress on many restaurant operating initiatives and building our footprint internationally,” said Scott Boatwright, CEO of Chipotle.

“I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests which will enable us to achieve our long-term ambitious goals of reaching 7,000 restaurants in North America, growing our AUVs beyond $4 million, expanding margins and making progress toward becoming a global iconic brand.”

Outlook: Chipotle expects full-year 2025 comparable restaurant sales growth in the low- to mid-single-digit range. The company expects to open between 315 and 345 new restaurants in 2025 with over 80% including a Chipotlane.

Chipotle’s leadership team will hold a conference call to further discuss the quarter at 4:30 p.m. ET.

CMG Price Action: Chipotle shares were down 4.78% after hours at $56.20 at the time of publication Tuesday, according to Benzinga Pro.

Photo: Courtesy of Chipotle.