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Dec 31, 2019

Chipotle Q4 2019 Earnings Report

Chipotle's Q4 2019 results were announced, highlighting strong comparable sales and digital growth.

Key Takeaways

Chipotle's Q4 2019 saw a 17.6% increase in revenue to $1.4 billion, driven by a 13.4% increase in comparable restaurant sales and new restaurant openings. Digital sales grew 78.3%, accounting for 19.6% of sales. Diluted earnings per share was $2.55, and adjusted diluted earnings per share was $2.86.

Revenue increased by 17.6% to $1.4 billion.

Comparable restaurant sales grew by 13.4%, driven by an 8.0% increase in transactions.

Digital sales increased by 78.3% and represented 19.6% of total sales.

The company opened 80 new restaurants and closed 3 during the quarter.

Total Revenue
$1.44B
Previous year: $1.23B
+17.6%
EPS
$0.06
Previous year: $0.03
+100.0%
Comparable Sales Increase
13.4%
Total Restaurant Count
2.62K
Net Restaurant Openings
77
Gross Profit
$276M
Previous year: $208M
+32.7%
Cash and Equivalents
$481M
Previous year: $250M
+92.3%
Free Cash Flow
$90.6M
Previous year: $51.7M
+75.4%
Total Assets
$5.1B
Previous year: $2.27B
+125.3%

Chipotle

Chipotle

Forward Guidance

For 2020, Chipotle anticipates mid-single digit comparable restaurant sales growth and 150 to 165 new restaurant openings, with an estimated full year tax rate between 26% and 29%.

Positive Outlook

  • Mid-single digit comparable restaurant sales growth
  • 150 to 165 new restaurant openings
  • More than half of new restaurants including a Chipotlane
  • Strong ending to 2019
  • Key strategies are working

Challenges Ahead

  • Risks of food safety and food-borne illnesses
  • Reliance on certain information technology systems
  • Privacy and cyber security risks
  • Impact of competition
  • Uncertainty of achieving expected levels of comparable restaurant sales