Chipotle Mexican Grill Inc beat Wall Street expectations for second-quarter earnings on Wednesday, as soaring digital sales helped it recover amid the coronavirus crisis and continue the performance that boosted its share price 40 per cent so far this year.
Digital sales for the quarter - including customers who order ahead through Chipotle’s mobile app to pick up in special drive-thru lanes - grew 216 per cent to nearly 61 per cent of total sales.
With more Americans staying indoors due to the coronavirus health crisis, Chipotle has relied heavily on online orders in recent weeks. In July, comparable sales are up 6.4 per cent.
Shares of the Mexican fast-casual chain, which features bowls and burritos, fell slightly in after-market trading but are still 40 per cent higher year-to-date, closing at $1,185.27 on Wednesday.
Chipotle, which has partnered with Uber Eats and Grubhub to bolster deliveries, had added more “Chipotlanes” at its restaurants, where customers can pick up orders without leaving their cars.
Total revenue fell 4.8 per cent to $1.36 billion, its first decline in at least 14 quarters but still beating Wall Street estimates of $1.34 billion.
Excluding one-time items, the fast-casual chain earned 40 cents per share, beating average analysts’ estimates of 35 cents, according to IBES data from Refinitiv.
Sales from restaurants open for at least 13 months fell 9.8 per cent in the second quarter ended June 30, compared with estimates of a 11.65 per cent drop, as a surge in online orders partially offset the decline in foot traffic.
The company expects to accelerate plans in 2021 to open new locations and now has 15 million people enrolled in its rewards program, executives said during a conference call.
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