Chipotle Mexican Grill is encouraged by the power of its digital sales, even as its dining halls open from coronavirus closures, chief financial officer Jack Hartung told CNBC on Friday.
“The pandemic, of course, really put some turbulence behind our digital business, but as we start to see Covid moving behind us – and we still have a way to go – we keep most of the digital business “About 80%,” Hartung said in an interview with Closing Bell.
“Then, as the tables reopened, we … regained about 60 percent of what we lost when the pandemic began,” added Hartung, who joined Chipotle nearly two decades ago. “So, really, we’re going to be ahead of the game when [the] the pandemic is fully behind us. We are very optimistic about where we are going from here. “
Customers came to Chipotle’s online ordering options during the Covid crisis. The fast-casual chain saw a 174% year-on-year increase in digital sales in 2020, contributing to a 7.1% increase in total revenue. Digital sales accounted for 46.2% of the company’s California sales last year, compared to 18% of 2019 sales.
In November, Chipotle opened its first exclusively digital restaurant. More recently, it has put quesadillas on its menu, but the long-awaited addition is only available for online orders.
Earlier this week, Chipotle announced an expansion of its employee-free college program. He now includes degrees in agriculture, gastronomy and hospitality.
Hartung said Chipotle has had positive results since introducing the educational initiative almost two years ago.
“When our people take advantage of these debt-free programs, they are 3 times more likely to stay with us and are seven times more likely to move into leadership, so we see this as an investment in our people,” Hartung said.
Chipotle shares closed Friday’s session modestly at about $ 1,531 a piece. The stock has increased by 10.4% so far and almost 100% in the last 12 months.