Chipotle Mexican Grill is shifting its focus towards international expansion after three decades of concentrating primarily on the U.S. market. This strategic move comes as the burrito chain continues to demonstrate robust growth, outpacing the broader restaurant industry. Over the past year, Chipotle's stock has surged by 17%, a stark contrast to the industry as a whole, which has faced challenges as consumers increasingly choose home-cooked meals to save money. Last November marked a leadership change with the appointment of Scott Boatwright as Chipotle's permanent CEO.
In recent financial updates, Chipotle reported a 13.1% increase in net sales, totaling $2.85 billion. The company also announced a fourth-quarter net income of $331.8 million, or 24 cents per share, an improvement from $282.1 million, or 20 cents per share, recorded in the same period a year earlier. These figures align with market expectations for revenue but show a slight miss in same-store sales growth, which rose by 5.4% compared to StreetAccount estimates of 5.7%.
Despite this slight shortfall in same-store sales projections, Chipotle's customer traffic continues to grow, with transactions rising by 4% in the recent quarter. The company remains optimistic about its future, projecting low- to mid-single digit same-store sales growth for 2025. Furthermore, Chipotle is planning an aggressive expansion strategy, expecting to open between 315 and 345 new locations next year. Over 80% of these new locations will feature "Chipotlanes," specialized drive-thrus designed for digital orders.
Chipotle's commitment to international growth is evident with the opening of 120 new restaurants during the quarter, including one international licensed location. The company also made a significant entry into Kuwait last year, marking its first venture into a new country in a decade. This development aligns with Chipotle's strategy to broaden its global presence.
In September, Chipotle reintroduced its popular Smoked Brisket, catering to customer demand and enhancing its menu offerings. This move is part of the company's ongoing efforts to innovate and attract new customers while retaining existing ones.