Chipotle Reports 13% Revenue Growth, Net Income Increase in Q3 2024

As of September 30, 2024, Chipotle Mexican Grill, Inc. reported total assets of $9,011.7 million, an increase from $8,044.4 million at the end of 2023. Total current assets rose to $1,680.3 million, up from $1,620.7 million. Cash and cash equivalents also increased significantly to $698.5 million from $560.6 million. However, total liabilities grew to $5,397.8 million from $4,982.2 million, while total shareholders' equity increased to $3,613.9 million from $3,062.2 million.

In terms of revenue, Chipotle's total revenue for Q3 2024 reached $2,793.6 million, marking a 13.0% increase from $2,471.9 million in Q3 2023. Food and beverage revenue for the same quarter was $2,778.0 million, up 13.1% year-over-year. For the nine months ended September 30, 2024, total revenue was $8,468.5 million, reflecting a 15.1% increase from $7,355.3 million in the prior year. Comparable restaurant sales increased by 6.0%, driven by a 3.3% rise in transactions and a 2.7% increase in average check.

Operating expenses for Q3 2024 totaled $2,320.3 million, compared to $2,077.0 million in Q3 2023. Despite the increase in expenses, income from operations rose to $473.3 million from $395.0 million, and net income for Q3 2024 was $387.4 million, up from $313.2 million in the same period last year. Basic earnings per share increased to $0.28 from $0.23.

For the nine months ended September 30, 2024, net income was $1,202.3 million, compared to $946.7 million for the same period in 2023. Cash provided by operating activities increased to $1,578.3 million from $1,518.0 million year-over-year.

Chipotle's strategic developments included the opening of 86 company-operated restaurants in Q3 2024, with plans to open approximately 285 to 315 new locations in 2024 and 315 to 345 in 2025, with a focus on including Chipotlanes. The company executed a 50-for-1 stock split on June 26, 2024, and retired all treasury stock owned in the second quarter. Additionally, the company is preparing to adopt new accounting standards related to segment reporting and income tax disclosures in its annual report for the year ending December 31, 2024.

The effective income tax rate for Q3 2024 decreased to 22.9% from 24.2% in Q3 2023, attributed to reductions in nondeductible expenses and the release of income tax reserves. Chipotle's management believes that the financial statements reflect all necessary adjustments for a fair presentation of its financial position and results of operations.