Chipotle Mexican Grill(CMG) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for Q1 2025 was $2,875,253, an increase of 6.4% compared to$ 2,701,848 in Q1 2024[9] - Net income for Q1 2025 was $386,599, representing a 7.6% increase from$ 359,287 in Q1 2024[9] - Earnings per share (EPS) for Q1 2025 were $0.28 diluted, up from$ 0.26 diluted in Q1 2024[9] - The company reported a comprehensive income of $387,034 for Q1 2025, compared to$ 357,994 in Q1 2024[9] - U.S. segment total revenue for Q1 2025 was $2,822,444,000, up from$ 2,657,756,000 in Q1 2024, indicating a year-over-year increase of 6.2%[54] - Food and beverage revenue for Q1 2025 was $2,807,074,000, an increase from$ 2,640,397,000 in Q1 2024, representing a growth of 6.3%[54] - Total revenue increased by 6.4% to $2.9 billion for the three months ended March 31, 2025[59] Assets and Liabilities - Total assets decreased to$ 9,044,094 as of March 31, 2025, down from $9,204,374 as of December 31, 2024[8] - Total current liabilities decreased to$ 1,091,538 as of March 31, 2025, compared to $1,168,768 as of December 31, 2024[8] - As of March 31, 2025, the gift card liability was$ 145,355, down from $181,771 on December 31, 2024[22] - The Chipotle Rewards liability increased to$ 58,389 as of March 31, 2025, from $47,324 on December 31, 2024, with revenue recognized of$ 39,985 for the three months ended March 31, 2025[24] - As of March 31, 2025, equity method investments totaled $27,116, down from$ 28,097 on December 31, 2024[29] - Other investments increased to $73,003 as of March 31, 2025, from$ 69,002 on December 31, 2024[29] Cash Flow and Financing Activities - Cash and cash equivalents at the end of Q1 2025 were $725,597, a decrease from$ 748,537 at the end of Q4 2024[8] - Total cash and cash equivalents as of March 31, 2025, amounted to $2,042,525, compared to$ 2,221,688 on December 31, 2024[25][26] - Cash provided by operating activities was $557.1 million for the three months ended March 31, 2025, compared to$ 569.2 million for the same period in 2024, reflecting a decrease primarily due to net cash changes in operating assets and liabilities[81] - Cash provided by investing activities was $6.1 million for the three months ended March 31, 2025, compared to cash used in investing activities of$ 301.0 million for the same period in 2024, mainly due to a $319.2 million decrease in investment purchases[82] - Cash used in financing activities was$ 585.2 million for the three months ended March 31, 2025, compared to $100.1 million for the same period in 2024, primarily due to increased repurchases of common stock of$ 526.8 million[83] - The company has $874,655 authorized for repurchasing shares of common stock, including$ 400,000 in additional authorizations approved on March 27, 2025[34] - The total number of shares repurchased in the first quarter of 2025 was 10,224,763 at an average price of $54.15 per share[95] - The company has$ 874.7 million remaining available for repurchases of shares of common stock, including a $400.0 million additional authorization approved on March 27, 2025[77][96] Operational Metrics - The company operated 3,781 restaurants as of March 31, 2025, including 3,697 in the U.S. and 84 international locations[16] - Comparable restaurant sales decreased by 0.4%, attributed to a 2.3% decline in transactions offset by a 1.9% increase in average check[60] - Digital sales accounted for 35.4% of total food and beverage revenue[60] - The company opened 57 new restaurants, including 48 with a Chipotlane, and expects to open approximately 315 to 345 company-owned restaurants in 2025[61] Cost and Expenses - Food, beverage, and packaging costs increased by 7.6% to$ 838.4 million, representing 29.2% of total revenue[67] - Labor costs rose by 8.9% to $718.2 million, accounting for 25.0% of total revenue[69] - Occupancy costs increased by 10.4% to$ 149.8 million, representing 5.2% of total revenue[70] - General and administrative expenses decreased by 15.6% to $172.8 million, accounting for 6.0% of total revenue[72] - Provision for income taxes increased by 13.4% to$ 114.9 million, with an effective tax rate of 22.9%[74] - The effective income tax rate for Q1 2025 was 22.9%, up from 22.0% in Q1 2024, primarily due to reduced tax benefits related to option exercises[41] Stock and Compensation - Total stock-based compensation for Q1 2025 was $38,180,000, compared to$ 36,681,000 in Q1 2024, reflecting a year-over-year increase of 4.1%[37] - Total capitalized stock-based compensation included in leasehold improvements was $579,000 for Q1 2025, down from$ 678,000 in Q1 2024[37] - The number of outstanding SOSARs increased from 10,414,000 on January 1, 2025, to 11,767,000 by March 31, 2025, reflecting a growth of 13%[38] Future Outlook - The company expects to generate positive cash flow for the foreseeable future, assuming no significant declines in comparable restaurant sales[79] - The company plans to continue investing in new restaurant construction and refurbishing existing restaurants using cash flow from operations[77] - The company anticipates a 50 basis point increase in food, beverage, and packaging costs due to tariffs enacted in April 2025[68] - As of March 31, 2025, the company had $500.0 million of undrawn borrowing capacity under a line of credit facility[78]