Operations

Chipotle's digital sales triple in Q3

Provided

October 21, 2020

Chipotle Mexican Grill Inc. reported Wednesday that revenue increased 14.1% to $1.6 billion and comparable restaurant sales were up 8.3% during Q3, ending Sept. 30. Digital sales grew 202.5% and accounted for 48.8% of sales for the quarter, leading the Newport Beach, California-based company to hit $2.82 per share. Earnings, adjusted for non-recurring costs, were $3.76 per share, which beat expectations of $3.44 per share.

"I have never been more confident that Chipotle is a powerful brand committed to fostering a culture that values and champions our diversity, while leveraging the individual talents of all team members," CEO Brian Niccol said in a company press release. "As a result of a strong brand, committed employees and broad financial strength, we remain excited about Chipotle's powerful economic model and our long-term potential."

COVID-19 and liquidity update

Chipotle is benefitting from investments made a few years ago, including advanced air filtration systems, sanitizers throughout the restaurant, wellness protocols and improved handwashing, Niccol said.

"In addition, we are closely following the recommendations of the CDC and local health departments and have implemented social distancing, wearing face masks, a tamper-evident packaging seal for all digital orders, as well as creating the steward role to sanitize high-traffic areas," he said in the release.

Chipotle opened 44 and closed three restaurants, bringing the total restaurant count to 2,710. During the quarter, 26 of the 44 included a Chipotlane, which are helping to increase new restaurant sales, margins and returns.

"It's hard to predict the external environment, but if we assume there are no further COVID-19 related construction stoppages, we expect to have a sequentially similar or perhaps slightly higher number of openings in the fourth quarter of 2020," according to the release.

The chain said it expects to open 200 units in 2021.

To learn about Chipotle's strategies now and going forward don't miss insight on Chief Restaurant Officer Scott Boatwright's keynote address at this week's Fast Casual Executive Summit.