A customer in a protective mask enters a restaurant owned by Chipotle Mexican Grill Inc. in San Francisco, California. .
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill reported Tuesday that same-store sales were up more than 5% in the last quarter, fueled by higher digital orders and the return of carne asada.
Citing the uncertainty caused by the coronavirus pandemic, the company declined to provide a forecast for same-store sales growth in fiscal 2021, but said it expected a strong first quarter.
Shares of Chipotle fell 4% during long-term trading. The stock hit a record high of $ 1,553.55 in trading earlier on Tuesday.
Here’s what the company reported for the quarter ended Dec. 31 compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: $ 3.48, adjusted, vs. Expected $ 3.73
- Revenue: $ 1.61 billion vs. $ 1.61 billion expected
Chipotle reported fourth-quarter net income of $ 190.9 million, or $ 6.69 per share, against $ 72.4 million or $ 2.55 per share a year earlier. The company posted an income tax benefit of $ 3.77 for the quarter.
Excluding an income tax benefit, corporate restructuring charges and other items, Chipotle earned $ 3.48 cents a share, while missing the $ 3.73 a share expected by analysts polled by Refinitiv.
Net sales increased 11.6% to $ 1.61 billion, which was in line with expectations.
Sales in the same store increased by 5.7%. The return of his carne asada in September boosted demand. What’s more, digital sales have nearly tripled, accounting for nearly half of the company’s quarterly sales. In the second and third quarters of Chipotle, online sales more than tripled.
So far, sales in the same store are up 11% in January. And if the pandemic doesn’t worsen, the company expects revenue growth in the mid to high teens in the first quarter.
The company also said it increased menu prices for delivery orders. Third-party apps, like DoorDash, charge restaurants a commission, eating up their profits. Chipotle had said in previous quarters that the higher number of supply orders fueled by the crisis had hurt profit margins.
The company opened 61 new locations during the quarter, moved two restaurants and closed one. In fiscal year 2021, Chipotle expects to open approximately 200 new restaurants, assuming little construction work and delays associated with the crisis.
Read the full earnings report here.