Chipotle Mexican Grill(US:CMG)2024-10-29 23:10Financial Performance - Total revenue for the three months ended September 30, 2024, was $2,793,576, an increase of 13.0% compared to $2,471,948 for the same period in 2023[6] - Net income for the nine months ended September 30, 2024, reached $1,202,346, up 27.0% from $946,651 in the prior year[6] - Earnings per share (EPS) for the three months ended September 30, 2024, was $0.28, compared to $0.23 for the same period in 2023, reflecting a 21.7% increase[6] - Comprehensive income for the three months ended September 30, 2024, was $388,462, compared to $312,089 for the same period in 2023, indicating a 24.4% increase[6] - Net income for the three months ended September 30, 2024, was $387,388 million, compared to $313,217 million for the same period in 2023, reflecting a growth of approximately 23.7%[54] - Total revenue for the nine months ended September 30, 2024, was $8,468,543, up 15.2% from $7,355,329 in the same period last year[6] Operating Costs - Restaurant operating costs for the three months ended September 30, 2024, totaled $2,320,320, a rise of 11.7% from $2,076,998 in the prior year[6] - Food, beverage, and packaging costs rose to $855.5 million for the three months ended September 30, 2024, a 16.5% increase from $734.2 million in the same period in 2023[76] - Labor costs for the three months ended September 30, 2024, were $696.8 million, reflecting a 13.1% increase from $616.3 million in the same period in 2023[78] - Occupancy costs increased to $142.6 million for the three months ended September 30, 2024, a 12.9% rise from $126.3 million in the same period in 2023[80] - Other operating costs for the three months ended September 30, 2024, were $386.5 million, an 11.9% increase from $345.4 million in the same period in 2023[82] - General and administrative expenses decreased to $126.6 million for the three months ended September 30, 2024, down 20.6% from $159.5 million in the same period in 2023[84] Cash Flow and Investments - Operating cash flow for the nine months ended September 30, 2024, was $1,578,306, an increase from $1,518,018 in the prior year[12] - Cash provided by operating activities was $1.6 billion for the nine months ended September 30, 2024, compared to $1.5 billion for the same period in 2023, reflecting an increase due to higher net earnings[98] - Cash used in investing activities was $701.5 million for the nine months ended September 30, 2024, down from $794.0 million in the same period in 2023, primarily due to a decrease in investment purchases[99] - The company had a cash and marketable investments balance of $2.2 billion as of September 30, 2024, with $1,059.6 million available for share repurchases[94] Stock Repurchase and Equity - The company repurchased common stock totaling $662,605 during the nine months ended September 30, 2024, compared to $437,305 in the same period of 2023[12] - The company had $1,059,595 million authorized for share repurchases as of September 30, 2024, including $400,000 million and $500,000 million in additional authorizations approved in August and September 2024, respectively[41] - The company retired 507,166 shares of common stock during the second quarter of 2024, resulting in a reduction of $5,194,196 million in treasury stock[41] Restaurant Operations - As of September 30, 2024, Chipotle operated 3,615 restaurants, including 3,540 in the U.S. and 75 internationally[13] - The company opened 86 new company-operated restaurants in the third quarter of 2024, including 73 with a Chipotlane[66] - The company plans to open approximately 285 to 315 new company-operated restaurants in 2024 and 315 to 345 in 2025, with at least 80% expected to include a Chipotlane[66] - Average restaurant sales for the three months ended September 30, 2024, were $3.184 million, a 7.1% increase from $2.972 million in the same period of 2023[73] Tax and Compliance - Provision for income taxes for the nine months ended September 30, 2024, was $368,787, compared to $291,502 in the prior year, reflecting a 26.5% increase[6] - The effective income tax rate for the three months ended September 30, 2024, was 22.9%, down from 24.2% in the same period of 2023, primarily due to reductions in nondeductible expenses and the release of income tax reserves[49] - The company expects to adopt new accounting standards related to segment reporting and income tax disclosures in future filings, which may enhance financial transparency[16] Other Financial Metrics - The company recognized a gain of $4,635 million related to the conversion of convertible notes into Series B Preferred Stock of Hyphen Technologies, Inc. during the three months ended September 30, 2024[38] - Interest and other income, net increased to $29.3 million for the three months ended September 30, 2024, up 59.3% from $18.4 million in the same period of 2023[88] - The company is exposed to commodity price risks, which could adversely affect results if ingredient prices increase and menu prices do not adjust accordingly[103]