Operations
Improved GM retention, tech investments drive Chipotle's solid Q4 performance
Chipotle will open up to 346 locations in 2025.
February 5, 2025
Chipotle Mexican Grill's solid Q4 performance, ending Dec. 31, 2024, was driven by improved general manager retention and strategic technology investments, said Chief Operating & Restaurant Officer Scott Boatwright. The chain's total revenue increased 13.1% to $2.8 billion and same-store sales were up 5.4 percent year-over-year. Digital sales comprised 34.4% percent of total revenue.
GM turnover reached historic lows in 2024, leading to increased stability and improved execution of key operational pillars like throughput, Boatwright said during Tuesday's earnings call.
"More stability among our GMs results in more stability in our restaurants and stability, coupled with consistent training and reps has been a big driver of the progress we have seen," he said.
"In 2024, throughput improved by about two entrees in the peak 15-minute period, and we achieved our near-term goal to reach the mid-20s. Our support centers and restaurant leadership teams continue to find ways to improve our ability to execute the four pillars. For example, our weekly throughput reviews conducted across our restaurant support centers help to keep us top-of-mind and give our restaurant leaders information to provide coaching and feedback to drive improvement as well as celebrate excellence."
Beyond GM stability, Chipotle's tech investments also played a crucial role.
The ongoing rollout of produce slicers, expected to be completed this summer, aims to improve team member experience and culinary consistency. The company is also exploring the synergistic benefits of combining the produce slicer with other back-of-house innovations like the dual-sided plancha, three-pan rice cooker and dual-vat fryer.
Initial results have been positive, prompting Chipotle to include all four pieces of equipment in new restaurant openings later this year. Designed to improve efficiency, speed and consistency, the technology initiatives will also maintain Chipotle's high culinary standards, ultimately leading to a better guest experience, Boatwright said.
"The rice cooker eliminates the large rice pots and cooks the rice on the pan that you see on the line which creates more consistent quality and streamlines the rice cooking process," he said. "And the dual-backed fryer doubles the capacity for frying our chips resulting in better quality and reducing the time it takes while ensuring consistent availability. Based on the initial results, we have decided to roll out all four pieces of equipment to new restaurant openings beginning later this year. And as we gain more data and insights into this initiative, we will determine if and how we roll out more broadly to existing restaurants."
For the full calendar year, Chipotle's same-store sales gained 7.4 percent, year-over-year and opened 304 restaurants in 2024. Over 250 of those included a Chipotlane.
Chipotle will open up to 346 locations in 2025.
