Chipotle Mexican Grill is being encouraged by the strength of its digital sales, even as dining halls open after coronavirus-related closures, Chief Financial Officer Jack Hartung told CNBC on Friday.
“The pandemic of course put some turbocharging behind our digital business, but now that we’re starting to see Covid get behind us – and we still have a way to go – we keep most of that digital business, about 80%,” Hartung said in an interview on “Closing Bell.”
“When the dinners reopened, we got back about 60% of what we lost when the pandemic started,” added Hartung, who joined Chipotle nearly two decades ago. So, really, we’ll end up ahead of the game when [the] pandemic is completely behind us. We are very optimistic about where we are going from here. “
Customers flocked to Chipotle’s online ordering options during the Covid crisis. The fast-casual chain saw a 174% year-on-year increase in digital sales in 2020, increasing total sales by 7.1%. Digital sales accounted for 46.2% of the California-based company’s sales last year, compared to 18% of 2019 sales.
In November, Chipotle opened its very first digital restaurant. More recently, it has put quesadillas on the menu, but the long-awaited addition is only available for online orders.
Earlier this week, Chipotle announced an expansion of its debt-free college education for employees. It now includes degrees in Agriculture, Culinary, and Hospitality.
Hartung said Chipotle has seen positive results since it introduced the education initiative nearly two years ago.
“If our people take advantage of these debt-free programs, they are 3.5 times more likely to stay with us and seven times more likely to move up to management positions, so we see this as an investment in our people.” Hartung said.
Shares of Chipotle closed Friday’s session modestly at around $ 1,531 each. The stock is up 10.4% so far and close to 100% in the last 12 months.