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Chipotle Mexican Grill(CMG) - 2024 Q4 - Annual Report
CMGChipotle Mexican Grill(CMG)2025-02-05 21:24

Restaurant Operations - As of December 31, 2024, the company owned 3,644 Chipotle restaurants in the U.S. and 82 international locations, with three additional licensed restaurants[123]. - The company opened 304 restaurants in 2024, including 257 with a Chipotlane, and plans to open approximately 315 to 345 new restaurants in 2025[125]. - The company anticipates comparable restaurant sales growth in the low to mid-single digit range for 2025[124]. Financial Performance - Total revenue for the year ended December 31, 2024, increased by 14.6% to 11.3billion,drivenbya7.411.3 billion, driven by a 7.4% increase in comparable restaurant sales[126]. - Comparable restaurant sales growth was attributed to a 5.3% increase in transactions and a 2.1% increase in average check[124]. - Digital sales accounted for 35.1% of total food and beverage revenue in 2024[124]. - Cash provided by operating activities was 2.1 billion for 2024, compared to 1.8billionin2023,reflectinghighernetearnings[150].−Interestandotherincome,netincreasedto1.8 billion in 2023, reflecting higher net earnings[150]. - Interest and other income, net increased to 93.9 million in 2024 from 62.7millionin2023,agrowthof49.862.7 million in 2023, a growth of 49.8%[139]. Cost Management - Labor costs increased by 14.3% to 2.79 billion, remaining flat as a percentage of total revenue at 24.7%[134]. - Food, beverage, and packaging costs rose by 15.9% to 3.37billion,representing29.83.37 billion, representing 29.8% of total revenue[133]. - General and administrative expenses increased by 10.1% to 697.5 million, accounting for 6.2% of total revenue[137]. Taxation - Provision for income taxes rose to 476.1millionin2024,up21.5476.1 million in 2024, up 21.5% from 391.8 million in 2023[140]. - The effective income tax rate decreased to 23.7% in 2024 from 24.2% in 2023, primarily due to lower nondeductible expenses[140]. Capital Expenditures and Investments - Total capital expenditures for 2024 were 593.6million,withanexpectedincreasetoapproximately593.6 million, with an expected increase to approximately 683.7 million in 2025[148]. - The average investment cost for new restaurants in 2025 is expected to be slightly higher than in 2024, with approximately 502.7millionallocatedfornewrestaurantconstruction[148].−TheCultivateNextFundhasmade502.7 million allocated for new restaurant construction[148]. - The Cultivate Next Fund has made 63 million in investments out of an authorized 100million,focusingonearly−stageinvestmentsalignedwiththecompany′smission[126].CashFlowandFinancing−Cashusedininvestingactivitiesdecreasedto100 million, focusing on early-stage investments aligned with the company's mission[126]. Cash Flow and Financing - Cash used in investing activities decreased to 837.5 million in 2024 from 946.0millionin2023,primarilyduetoadecreaseininvestmentpurchases[151].−Cashusedinfinancingactivitiesincreasedto946.0 million in 2023, primarily due to a decrease in investment purchases[151]. - Cash used in financing activities increased to 1.1 billion in 2024, compared to 660.7millionin2023,mainlyduetohigherstockrepurchases[152].−AsofDecember31,2024,thecompanyhadacashandmarketableinvestmentsbalanceof660.7 million in 2023, mainly due to higher stock repurchases[152]. - As of December 31, 2024, the company had a cash and marketable investments balance of 2.2 billion and $500.0 million of undrawn borrowing capacity[144][145]. - The company expects to generate positive cash flow for the foreseeable future, assuming no significant declines in comparable restaurant sales[146].