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A customer wearing a protective mask walks into a Chipotle Mexican Grill Inc. restaurant in San Francisco, California. .
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill said on Tuesday that its same-store sales grew more than 5% in its most recent quarter, fueled by the rise in digital orders and the return of carne asada.
Citing the uncertainty caused by the coronavirus pandemic, the company declined to provide a forecast for same-store sales growth in fiscal 2021, but said it expected a strong first quarter.
Chipotle shares fell 4% in extended trading. The stock hit an all-time high of $ 1,553.55 when trading earlier Tuesday.
Here’s what the company reported for the quarter ended Dec.31 compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: $ 3.48, adjusted, vs. $ 3.73 expected
- Turnover: $ 1.61 billion against $ 1.61 billion expected
Chipotle reported fourth quarter net income of $ 190.9 million, or $ 6.69 per share, from $ 72.4 million, or $ 2.55 per share, a year earlier. The company recorded a tax benefit of $ 3.77 for the quarter.
Excluding the tax benefit, corporate restructuring charges and other items, Chipotle earned 3.48 cents per share, missing the $ 3.73 per share expected by analysts polled by Refinitiv.
Net sales rose 11.6% to $ 1.61 billion, meeting expectations.
Comparable store sales increased 5.7%. The return of its carne asada in September boosted demand. In addition, digital sales nearly tripled, increasing 177% from the same period a year ago, and accounted for almost half of the company’s quarterly revenue. Online sales jumped 216% in the second quarter of Chipotle and 202% in the third.
So far in January, same-store sales have climbed 11%. And if the pandemic does not worsen, the company expects same-store sales growth among middle-to-high teens in the first quarter.
The company also said it has increased menu prices for delivery orders. Third-party apps like DoorDash charge restaurants a commission fee, which will eat into their profits. Chipotle had said in previous quarters that the higher incidence of crisis-fueled delivery orders had hurt its profit margins.
The company opened 61 new locations during the quarter, moved two restaurants and closed one. In fiscal 2021, Chipotle plans to open around 200 new restaurants, assuming it encounters little construction and clears crisis-related delays.
Read the full revenue report here.
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