Chipotle Mexican Grill(US:CMG)2024-04-25 19:51Financial Performance - Total revenue for Q1 2024 was $2,701,848, a 14.0% increase from $2,368,580 in Q1 2023[7] - Net income for Q1 2024 was $359,287, compared to $291,644 in Q1 2023, representing a 23.2% increase[7] - Earnings per share (EPS) for Q1 2024 were $13.09 (basic) and $13.01 (diluted), up from $10.56 and $10.50 respectively in Q1 2023[7] - Total revenue for Q1 2024 increased by 14.1% to $2.7 billion compared to $2.37 billion in Q1 2023[60] - Net income for the three months ended March 31, 2024, was $359.3 million, compared to $291.6 million for the same period in 2023, reflecting an increase of about 23%[7] - Basic earnings per share for Q1 2024 was $13.09, up from $10.56 in Q1 2023, representing a growth of 24.3%[51] - Diluted earnings per share increased by 23.9% to $13.01, reflecting a $0.36 after-tax impact from increased legal reserves[60] Operating Costs and Expenses - Restaurant operating costs increased to $2,260,556 in Q1 2024 from $2,000,970 in Q1 2023, with food, beverage, and packaging costs rising to $779,076[7] - Restaurant operating costs as a percentage of total revenue decreased to 72.5% in Q1 2024 from 74.4% in Q1 2023, benefiting from sales leverage[63] - Labor costs increased by 13.0% to $659.5 million, representing 24.4% of total revenue, with a significant impact from California's minimum wage increase to $20 per hour[70] - General and administrative expenses rose by 37.9% to $204.6 million, accounting for 7.6% of total revenue[75] - Total stock-based compensation expense for Q1 2024 was $36,681, compared to $20,670 in Q1 2023, indicating an increase of 77.5%[43] Cash Flow and Investments - Cash provided by operating activities was $569,234 in Q1 2024, compared to $455,036 in Q1 2023[14] - Cash provided by operating activities increased to $569.2 million for the three months ended March 31, 2024, up from $455.0 million in the same period of 2023, marking a growth of approximately 25%[86] - Cash, cash equivalents, and restricted cash at the end of Q1 2024 were $753,532, compared to $434,860 at the end of Q1 2023[14] - As of March 31, 2024, the company had a cash and marketable investments balance of $2.1 billion, with an additional $76.0 million in non-marketable investments[83] - Cash used in investing activities was $301.0 million for the three months ended March 31, 2024, compared to $235.5 million in the same period of 2023, indicating an increase of approximately 28%[86] Restaurant Operations - As of March 31, 2024, Chipotle operated 3,479 restaurants, including 3,411 in the U.S. and 68 internationally[17] - The company opened 47 new restaurants in Q1 2024, including 43 with a Chipotlane, and plans to open approximately 285-315 new restaurants in 2024[64] - Comparable restaurant sales rose by 7.0%, driven by higher transactions (5.4%) and an increase in average check (1.6%) for the three months ended March 31, 2024[61] - Digital sales accounted for 36.5% of total food and beverage revenue in Q1 2024[61] Liabilities and Equity - The Chipotle Rewards liability increased to $47,324 in Q1 2024 from $39,214 in Q1 2023, indicating growth in customer engagement[26] - Revenue recognized from gift card redemptions was $44,812 in Q1 2024, up from $38,878 in Q1 2023[23] - The accrued legal liability balance was $21,587 as of March 31, 2024, up from $7,640 as of December 31, 2023[54] - The company had $399,098 authorized for repurchasing shares of common stock as of March 31, 2024[41] - The acquisition of treasury stock in Q1 2024 amounted to $27,005, down from $126,709 in Q1 2023, indicating a decrease of approximately 78.7%[14] Tax and Legal Matters - The effective income tax rate decreased to 22.0% for Q1 2024 from 22.5% in Q1 2023, primarily due to increased tax benefits related to option exercises and equity vesting[47] - The effective income tax rate for the three months ended March 31, 2024, was 22.0%, a decrease from 22.5% for the same period in 2023[47] Risks and Future Outlook - The company is exposed to commodity price risks, which could adversely affect results if ingredient prices increase and menu prices do not adjust accordingly[90] - The company expects to generate positive cash flow for the foreseeable future, assuming no significant declines in comparable restaurant sales[85] - The company plans to utilize cash flow from operations for capital investments in new restaurant construction and share repurchases, with $399.1 million remaining available for share repurchases[83] - The company has limited foreign currency exchange risk as the majority of operations and investments are conducted in the U.S.[92]