News

Chipotle customers hungry for mobile ordering, digital sales up 99%

July 24, 2019

Chipotle Mexican Grill is flying high after announcing a 13.2% revenue increase for Q2, thanks to a 99% increase in digital sales.

"Our customers are responding positively to our digital system, which includes order ahead, delivery and catering as it reduces friction and creates a convenient and enjoyable way for our guests to experience Chipotle," CEO Brian Nicool said Tuesday during the company's earnings call. 

Digital sales, which were up 100% during Q1, represented 18.2% of Q2 sales — $262 million. 

"This was more than we did in digital sales during all of 2016, Nicool said. "Delivery remains a key driver of our digital growth given enhanced capabilities on our app and website, as well as our expanded reach. In fact, delivery is now available for more than 95% of our restaurants and remains highly incremental."

Q2 highlights

• Comparable restaurant sales increased 10.0%, net of 40 bps from loyalty deferral, and included nearly 7% of comparable restaurant transaction growth.
• Digital sales grew 99.1% and accounted for 18.2% of sales for the quarter.
• Restaurant level operating margin was 20.9%, an increase from 19.7%
• Diluted earnings per share was $3.22, net of a $0.77 after-tax impact from expenses related to restaurant asset impairment, corporate restructuring and certain other costs, a 91.7% increase from $1.68. Adjusted diluted earnings per share, excluding these charges, was $3.99, a 39% increase from $2.87.
• Opened 20 restaurants and closed one.

"We're pleased with our financial performance, which marks the sixth consecutive quarter of accelerating comps and reflects continued progress on our key strategic initiatives," Nicool said in a company press release issued Tuesday. "These strong results were delivered despite a tougher year over year comparison and benefited from better restaurant operations, more effective marketing, and leveraging our digital make line to grow sales and expand access."

Outlook
For 2019, management is anticipating the following:

• High single digit comparable restaurant sales growth, up from the prior mid to high single digit range expectation.
• 140 to 155 restaurant openings.
• An estimated underlying effective full year tax rate in the range of 26% and 29%.

Photo: courtesy of Chipotle