A person wearing a face mask and gloves leaves a Chipotle restaurant in San Francisco, California, April 19, 2021.
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill is clinging to recent gains in digital sales, as its online orders have for the first time surpassed those made in its restaurants.
First-quarter earnings released on Wednesday exceeded Wall Street revenue estimates. Next quarter, Chipotle will face the weakest quarter of last year. This means that sales in the same store are expected to increase by up to 30%.
The company’s shares increased by less than 1% in extended transactions.
Here is what the company reported compared to what Wall Street expected, based on a survey conducted by analysts by Refinitiv:
- Earnings per share: USD 5.36 adjusted compared to the expected USD 4.89
- Revenue: $ 1.74 billion compared to $ 1.74 billion expected
Chipotle reported first-quarter tax revenue of $ 127.1 million, or $ 4.45 per share, up from $ 76.4 million or $ 2.70 per share a year earlier. Costs related to business restructuring, depreciation and closure of restaurant assets and Covid-19 reduced profit by 91 cents per share.
Except for these items, the company earned $ 5.36 per share, exceeding $ 4.89 per share expected by analysts surveyed by Refinitiv.
Net sales rose 23.4% to $ 1.74 billion, meeting expectations. Sales in the same store increased by 17.2% in that quarter, driven by new menu items and online orders. During the quarter, Chipotle launched cauliflower rice, which costs $ 2 extra, and quesadillas, an exclusive digital system. The launch of the quesadils in March could have been a factor in increasing Chipotle’s digital sales. Online orders doubled during the quarter and accounted for 50.1% of total sales.
The company has also accredited government incentive checks, which put more spending money in the hands of consumers.
The company opened 40 new locations this quarter, more than half of which included treads to take digital orders. He closed five restaurants.
The company declined to offer a sales growth outlook for the rest of 2021, citing uncertainty caused by the pandemic. It expects to open about 200 new locations this year, assuming there are no significant delays related to the crisis.