Sales Growth: 14% increase year-over-year to reach $2.7 billion.
Comparable Sales Growth: 7% driven by over 5% transaction growth.
In-Store Sales Growth: Grew by 19% over the previous year.
Digital Sales: Represented 37% of total sales.
Restaurant-Level Margin: Increased to 27.5%, up 190 basis points year-over-year.
Adjusted Diluted EPS: $13.37, representing 27% growth over last year.
New Restaurants: Opened 47 new restaurants, including 43 Chipotlanes.
Future Guidance
Annual Comparable Sales Guidance: Increased to mid- to high single-digit range for the full year.
New Restaurant Openings: Targeting 285 to 315 new restaurants in 2024, mostly in North America, with over 80% having a Chipotlane.
Menu Price Increase: In California, menu prices increased by 6% to 7% due to a minimum wage increase to $20 an hour, expected to add almost 1 full point to total company pricing beginning in Q2.
Labor Costs: Expected to be in the mid-24% range for Q2, reflecting wage inflation stepping up to about 6%.
Marketing Costs: Expected to be in the low 2% range for Q2 with the full year just below 3%.
G&A Costs: Total anticipated G&A in Q2 around $171 million.
Trends, Market Conditions, Sentiment
Throughput Improvements: Significant focus on improving throughput has resulted in the highest levels in four years, with continuous improvement seen into the month of April.
Marketing Campaigns: Successful marketing campaigns, including promotion of barbacoa and Chicken al Pastor, driving incremental transactions.
Digital Engagement: Digital sales constituted a significant portion of total sales, with efforts ongoing to increase the digital reach and engagement through the Rewards program.
International Expansion: Opened first restaurant in Kuwait, marking Chipotle’s expansion into new international markets.
Stock Split Announcement: A 50-for-1 stock split announced to make stock more accessible to employees and a broader range of investors, pending shareholder approval.
Labor Costs Increase: The increase in minimum wage in California impacting labor costs and overall company restaurant-level margin.
Focus on People and Culture: Continuous emphasis on developing and retaining diverse talent, including recognizing long-term employees with stock grants post the stock-split effect.
Notable Quotes
”The strength in our business, including transaction-driven comps, is due to the collective hard work of our 120,000 employees.” - Brian Niccol
”I believe the next Chipotle is Chipotle.” - Brian Niccol
”These 3 characteristics are incredibly difficult to replicate: premium ingredients, affordable prices and attractive margins. And this is a huge competitive advantage.” - John Hartung
”Chipotle started over 30 years ago with a young chef who thought just because food is served fast doesn’t mean it has to be a typical fast food experience.” - John Hartung
