Chipotle’s business is booming as the restaurant chain’s digital sales jumped 133.9%, and s its online orders overtook orders made inside its restaurants for the first time ever..
The 2,803 store chain credited government stimulus checks helping drive customers to order burritos, tacos, and salads. Growth also was credited to its “Chipotlane” drive-thru service. The chain opened 40 new locations in the quarter, more than half of which included the drive-thru lanes to pick up digital orders.
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Digital sales accounted for a little more than half of Chipotle’s total $1.7 billion in revenue during the quarter, a 24% increase compared to the same period a year ago. Meanwhile, the company saw a 17.2% increase in comparable restaurant sales, boosted by several new menu additions highlighted by quesadillas.
Overall, Chipotle posted net income of $127.1 million, or $4.45 per share, compared to $76.4 million, or $2.70 per share, a year ago. Excluding closure costs, restructuring expenses and other items, the company earned an adjusted net income of $153.1 million, or $5.36 per share.
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Looking ahead at the second quarter, the company expects comparable restaurant sales to be in the range of 20 to 30%.
Given the ongoing uncertainty due to COVID-19, Chipotle did not provide fiscal 2021 comparable restaurant sales growth guidance. However, it anticipates up to 200 new restaurant openings in 2021, assuming minimal construction and permit delays related to COVID-19.
|CMG||CHIPOTLE MEXICAN GRILL INC.||1,510.98||-24.07||-1.57%|
Chipotle also repurchased $61.2 million worth of its common stock during the quarter, at an average price of $1,425. Shares of the company rose 0.4% in after-hours trading following the earnings announcement.
While other chains have been forced to close dozens of locations due to the pandemic, Chipotle said it closed only five stores last year.