Chipotle digital sales increase 134% as customers pre-order through “Chipotlanes”

The Chipotle business is booming, as digital burrito chain sales rose 133.9%, with online orders surpassing orders placed in its restaurants for the first time.

The company credited its growth with government incentive checks, providing consumers with additional spending and an increase in pre-placed orders through its drive-thru “Chipotlane” service. The chain opened 40 new locations this quarter, more than half of which included treads for digital order picking.

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Digital sales accounted for just over half of Chipotle’s total revenue of $ 1.7 billion in that 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 had 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 expenses and other items, the company earned adjusted net income of $ 153.1 million, or $ 5.36 per share.

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Looking to the future, in the second quarter, Chipotle expects comparable restaurant sales to be between 20 and 30%. Given the continuing uncertainty due to COVID-19, Chipotle did not offer comparable guidance on restaurant sales growth in 2021.

While other chains were forced to close dozens of locations due to the pandemic, Chipotle said it closed only five stores in that quarter, reaching 2,803 locations. Chipotle anticipates approximately 200 new restaurant openings in 2021, implying minimal construction delays and COVID-19 permits.

Chipotle also repurchased its usual shares worth $ 61.2 million in that quarter at an average price of $ 1,425. The company’s shares increased by 0.4% in trading after the program, after the announcement of earnings.