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Dec 31, 2020

Chipotle Q4 2020 Earnings Report

Chipotle's Q4 2020 results demonstrated resilience with digital sales growth and comparable restaurant sales increase.

Key Takeaways

Chipotle reported an 11.6% increase in total revenue to $1.6 billion, driven by a 5.7% increase in comparable restaurant sales and new restaurant openings. Digital sales grew by 177.2%, accounting for 49.0% of total sales. Diluted earnings per share was $6.69, and adjusted diluted earnings per share was $3.48.

Total revenue increased by 11.6% to $1.6 billion.

Comparable restaurant sales increased by 5.7%.

Digital sales grew by 177.2% and accounted for 49.0% of sales.

Opened 61 new restaurants, including two relocations, and closed one.

Total Revenue
$1.61B
Previous year: $1.44B
+11.7%
EPS
$0.07
Previous year: $0.06
+16.7%
Comparable Sales Increase
5.7%
Previous year: 13.4%
-57.5%
Total Restaurant Count
2.77K
Previous year: 2.62K
+5.6%
Net Restaurant Openings
60
Previous year: 77
-22.1%
Gross Profit
$313M
Previous year: $276M
+13.3%
Cash and Equivalents
$608M
Previous year: $481M
+26.5%
Free Cash Flow
-$11.5M
Previous year: $90.6M
-112.7%
Total Assets
$5.98B
Previous year: $5.1B
+17.2%

Chipotle

Chipotle

Forward Guidance

Chipotle is not providing fiscal 2021 comparable restaurant sales growth guidance due to on-going uncertainty surrounding the future impact of COVID-19. They anticipate around 200 new restaurant openings and an estimated effective full year tax rate between 25% and 27%.

Positive Outlook

  • Expect first quarter 2021 comparable restaurant sales to be in the mid to high teens range
  • Around 200 new restaurant openings are anticipated
  • Assumes minimal construction and permit delays related to COVID-19
  • Estimated effective full year tax rate between 25% and 27%
  • January comparable restaurant sales growing around 11%

Challenges Ahead

  • On-going uncertainty surrounding the future impact of COVID-19 on the broader US economy
  • Uncertainty surrounding any specific impact to our company
  • Not providing fiscal 2021 comparable restaurant sales growth guidance
  • Winter weather across the country contributing to the lower comp
  • Pandemic worsening could impact sales