Chipotle Mexican Grill(CMG) - 2024 Q2 - Quarterly Results

Revenue and Sales Performance - Total revenue increased 18.2% to $3.0 billion in Q2 2024[1][2] - Comparable restaurant sales increased 11.1% driven by 8.7% transaction growth and 2.4% increase in average check[1][2] - Digital sales represented 35.3% of total food and beverage revenue[2] - Total revenue for the six months ended June 30, 2024, was $5,674,966 thousand, a 16.2% increase from $4,883,381 thousand in 2023[15] - Comparable restaurant sales increased by 11.1% for the three months ended June 30, 2024, compared to 7.4% in the same period in 2023[20] Profitability and Earnings - Diluted earnings per share increased 32.0% to $0.33, with adjusted diluted EPS up 36.0% to $0.34[1][5] - Net income increased to $455.7 million, up from $341.8 million in Q2 2023[5] - Net income for the six months ended June 30, 2024, was $814,958 thousand, a 28.7% increase from $633,434 thousand in 2023[15] - Adjusted net income for the three months ended June 30, 2024, was $462,991 thousand, compared to $350,894 thousand in the same period in 2023[25] - Adjusted diluted earnings per share for the three months ended June 30, 2024, was $0.34, compared to $0.25 in the same period in 2023[25] - Income from operations rose to $586,053 thousand (19.7% of total revenue) in 2024, up from $431,810 thousand (17.2% of total revenue) in 2023[31] Restaurant Operations and Expansion - Restaurant level operating margin improved to 28.9%, up 140 basis points from 27.5% in Q2 2023[1][4] - Opened 52 new company-operated restaurants, including 46 with Chipotlane, and one international licensed restaurant[1][2] - Full year 2024 guidance: comparable restaurant sales growth in mid to high-single digit range, 285-315 new restaurant openings with over 80% having Chipotlane[7] - Company-operated restaurants opened 52 in the three months ended June 30, 2024, compared to 47 in the same period in 2023[20] - Restaurant level operating margin increased to 28.9% in 2024 from 27.5% in 2023[31] Costs and Expenses - Food, beverage and packaging costs remained stable at 29.4% of total revenue[3] - Adjusted general and administrative expenses for the three months ended June 30, 2024, were $171,253 thousand, compared to $153,001 thousand in the same period in 2023[27] - General and administrative expenses decreased to 5.9% of total revenue in 2024 from 6.2% in 2023[31] - Depreciation and amortization expenses decreased to 2.8% of total revenue in 2024 from 3.1% in 2023[31] - Pre-opening costs remained stable at 0.3% of total revenue in both 2024 and 2023[31] - Impairment, closure costs, and asset disposals decreased to 0.2% of total revenue in 2024 from 0.6% in 2023[31] Share Repurchase and Cash Flow - Repurchased $151.4 million of stock at an average price of $63.52 per share, with $647.7 million remaining under share repurchase authorization[5] - Cash and cash equivalents increased to $806,528 thousand as of June 30, 2024, from $560,609 thousand as of December 31, 2023[16] - Net cash provided by operating activities for the six months ended June 30, 2024, was $1,131,812 thousand, a 9.1% increase from $1,037,546 thousand in 2023[18] Tax and Non-GAAP Adjustments - Adjusted effective income tax rate for the three months ended June 30, 2024, was 25.0%, compared to 23.8% in the same period in 2023[29] - Total non-GAAP adjustments decreased to 9.2% of total revenue in 2024 from 10.3% in 2023[31]