Chipotle faces risks from increasing ingredient and labor costs (including minimum wage increases), supply chain disruptions, potential food safety incidents, competition, and negative publicity. Litigation risks, including employment-related and consumer claims, are also noted. Commodity price volatility, interest rate fluctuations, and foreign currency exchange risk are mentioned as potential issues. The company's reliance on certain IT systems and third-party delivery services also presents risks.
Financial Upside
Chipotle's revenue increased 13% in Q3 2024, driven by comparable restaurant sales growth of 6%. New restaurant openings, including those with Chipotlanes, are expected to continue. International expansion, including licensed restaurants, is underway. The company has a $500 million revolving credit facility and expects positive cash flow. Stock buybacks are planned, subject to market conditions.
