Chipotle Mexican Grill (CMG) Q3 2024 earnings

Chipotle Mexican Grill on Tuesday reported mixed quarterly results, despite another quarter of higher traffic to its restaurants. 

Shares of the company fell 7% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 27 cents adjusted vs. 25 cents expected
• Revenue: $2.79 billion vs. $2.82 billion expected

Chipotle reported third-quarter net income of $378.4 million, or 28 cents per share, up from $313.2 million, or 23 cents per share, a year earlier. 

The company’s food and beverage costs increased during the quarter, in part due to Chipotle’s decision to re-emphasize generous portions after social media-fueled backlash over the size of its burrito bowls this summer.

Excluding items, the company earned 27 cents per share.

Net sales climbed 13% to $2.79 billion. 

Same-store sales rose 6%, just shy of StreetAccount estimates of 6.3%. Traffic to restaurants increased 3.3% in the quarter, continuing the chain’s streak of bucking an overall slump in foot traffic across the industry. While many consumers have opted to eat out less, Chipotle has benefitted from having a wealthier customer base that’s willing to pay more for its burritos and bowls. 

During the third quarter, Chipotle brought back its popular smoked brisket for a limited time. It’s currently the most expensive protein, topping even the chain’s steak and beef barbacoa options.

Digital sales accounted for 34% of the chain’s quarterly food and beverage revenue.

The company opened 86 new locations during the quarter, 73 of which included a “Chipotlane” dedicated to online order pickup.

For the full year, Chipotle reiterated its outlook that same-store sales will grow by a mid- to high-single-digit percentage. The company also anticipates that it will open between 285 and 315 new restaurants this year.

Looking to 2025, Chipotle plans to open between 315 and 345 new locations. More than 80% of those restaurants will include a Chipotlane.

The earnings report marks the company’s first since CEO Brian Niccol departed to lead Starbucks’ turnaround. Chipotle’s board has tapped COO Scott Boatwright as the company’s interim chief executive.

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