The company reported a 5.4% increase in same-store sales in the fourth quarter, with transactions up by 4%
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If you thought Chipotle would miss a beat from its leadership transition late last year, you were mistaken. Leading his second quarterly report Tuesday after market – and his first as permanent CEO – Scott Boatwright shared several strong metrics from Q4, including a same-store sales increase of 5.4%; transactions up 4%; net sales up 13.1% (to $2.85 billion); and net income up to $331.8 million, versus $282.1 million year-over-year.
The comparable numbers are especially remarkable given that Chipotle was lapping a successful Carne Asada promotion last year. But as it turns out, bringing back another popular limited-time offer for the first time in three years also creates some magic. The Smoked Brisket, launched in September, exceeded expectations while driving transactions and new customers. Chief financial officer Adam Rymer said customers who typically choose other proteins switched to the higher-priced item.
“It’s an extraordinary product. Consumers voted with their wallets,” Boatwright added.
Brisket wasn’t the only success story from Q4, however. The company continues to outscore other brands on value while taking share amid a deal-heavy environment. Boatwright said Chipotle’s prices are about 30% less than its category peers.
Throughput also drove transactions once again and, in 2024, restaurants served two additional entrées in their peak 15-minute periods. Much of this progress is attributable to the lowest turnover rate in the eight years that Boatwright has been with the company, he said, as well as shifting the manager on duty to the expo position.
Moving through 2025, Chipotle is focused on maximizing back-of-house efficiencies, ensuring more restaurants complete the morning prep work on time, “amplifying technology,” and implementing tools to support employees. Restaurants are currently adding produce slicers, for instance, with a systemwide rollout expected to be completed by the summer.
“Fresh chopped produce is the key to maintaining our high culinary standards, but it’s also one of the most time-consuming tasks,” Boatwright said. Produce slicers alleviate much of that time.
Chipotle has also begun a new initiative in a patch of restaurants that tests the “synergies” of four new equipment tools – a rice cooker, dual-back fryer (which doubles the capacity for frying chips), dual-sided plancha (which cooks proteins in half the time), and the produce slicers. The goal is to include them all in new restaurants this year and determine a retrofitting pace for existing restaurants.
“We’re beginning to look at tools and processes holistically versus additions,” Boatwright said. “Modernizing the back of house will be a major focus this year.”
These tools are in addition to the company’s Autocado and Augmented Digital Makeline tests that are currently making their way through a stage-gate process.
“We’re early in our learnings but we are making progress and remain optimistic,” Boatwright said. “When we improve the experience for our team members, that ladders to our customers.”
Laddering better experiences to customers is also a major priority this year. Boatwright said the company is focused on “being guest obsessed,” or “making sure everything we do is in service to our guests or those who serve our guests.”
Chipotle expects to maintain much of its momentum from its improved retention rate, its operations and staffing model, and an “extraordinary marketing calendar,” according to Boatwright, which will more than likely include a systemwide Honey Chicken launch.
“Our operations team has never been on better footing,” Boatwright said. “We’re set up for an extraordinary year around improving guest experience. We’ve spent a lot of time over past years getting to the heart of culinary, and the idea of the modernization of the back of house, which drives efficiencies, allows us to be better prepared for peak time and scale the brand as we endeavor to get to 7,000 restaurants.”
Chipotle Q4 by the numbers
Total revenue increased 13.1% to $2.8 billion
Comparable restaurant sales increased 5.4%
Operating margin was 14.6%, an increase from 14.4%
Restaurant-level operating margin was 24.8%, a decrease from 25.4%
Opened 119 company-owned restaurants with 95 locations including a Chipotlane, and one international licensed restaurant
Full year 2024 highlights, year over year:
Total revenue increased 14.6% to $11.3 billion
Comparable restaurant sales increased 7.4%
Operating margin was 16.9%, an increase from 15.8%
Restaurant-level operating margin was 26.7%, an increase from 26.2%
Opened a record 304 company-owned restaurants, 257 of which included a Chipotlane, and three international licensed locations
Contact Alicia Kelso at [email protected]
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