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Chipotle’s business is thriving as the burrito chain’s digital sales are up 133.9%, with online orders catching up on orders in the restaurants for the first time.
The company owed its growth to government incentive controls that gave consumers extra spending money and an increase in the number of orders placed in advance through its “Chipotlane” drive-thru service. The chain opened 40 new locations in the quarter, more than half of which included drive-thru lanes to pick up digital orders.
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Digital sales accounted for just over half of Chipotle’s total $ 1.7 billion in revenue for the quarter, up 24% from the same period a year ago. Meanwhile, the company saw a 17.2% increase in comparable restaurant sales, boosted by several new menu additions, including quesadillas and cauliflower rice.
In total, 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 closing costs, restructuring charges and other items, the company posted adjusted net income of $ 153.1 million, or $ 5.36 per share.
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Looking ahead to the second quarter, Chipotle expects comparable restaurant sales to be between 20 and 30%. Given the ongoing uncertainty resulting from COVID-19, Chipotle has not issued comparable restaurant sales growth guidelines for fiscal 2021.
While other chains have had to close dozens of locations due to the pandemic, Chipotle said it closed just five stores during the quarter, bringing the total to 2,803 locations. Chipotle expects approximately 200 new restaurant openings in 2021, assuming minimal construction and permit delays associated with COVID-19.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| CMG | CHIPOTLE MEXICAN GRILL INC. | 1,510.98 | -24.06 | -1.57% |
Chipotle also repurchased $ 61.2 million of common stock during the quarter, at an average price of $ 1,425. Shares of the company were up 0.4% in out of hours trading following the earnings announcement.