Chipotle’s quesadilla
Chipotle Mexican Grill
Chipotle Mexican Grill’s quesadillas were worth the wait.
After years of tinkering with the recipe, the burrito chain launched the menu item in mid-March as a digital exclusivity. So far, it seems like taking the time to find out has paid off for Chipotle. CEO Brian Niccol said on Wednesday that about 10% of customers order the quesadillas, which is the first new entree in 17 years.
“We made sure we took the time to develop an excellent product that consumers love and that works well operationally,” he told analysts.
Niccol also said that “a lot” of new customers buy quesadillas so they don’t take the sale off burrito bowls or tacos. Chipotle saw the highest number of new customers in March, coinciding with the launch. In addition, customers who order the quesadillas create a new dining option, such as an afternoon snack.
The successful launch of quesadillas may have been a factor in Chipotle’s first quarter digital sales growth. Online orders more than doubled during the quarter, accounting for 50.1% of total sales, overtaking personal orders for the first time.
Shares of Chipotle were up less than 1% in expanded trading Wednesday after the company reported its first-quarter results. The company crushed Wall Street’s earnings expectations and met its revenue expectations.