Chipotle Reports Strong Q1 Results Boosted by Digital Sales

Burrito food chain Chipotle reported its first quarter financial results this week revealing revenue that was boosted by strong digital sales amid the COVID-19 pandemic.

Shares of the company rose over 8% on Wednesday morning as Wall Street digested the report.

For the first quarter, Chipotle reported revenue of $1.4 billion compared to $1.4 billion that was expected according to Bloomberg estimates. Adjusted earnings per share at $3.08 also beat the $2.70 expected per Bloomberg.
It was around mid-March that the company closed its dining halls and moved to delivery and take out to adhere to social distancing.

For the quarter, digital sales grew 80.8% and represented approximately 26.3% of revenue. During March, digital sales grew 102.6% year-over-year and represented 37.6% of sales.

“I am grateful to all our employees for their commitment and efforts in providing guests access to our safe, delicious, high-quality food made from real ingredients during this unprecedented time,” CEO Brian Niccol stated. “Investing in digital over the last several years has allowed us to quickly pivot our business with Q1 digital sales reaching our highest ever quarterly level of $372 million.”

Chipotle had reported same-store sales growth of 12% in January, a 17% jump in February and same-store sales decline of 16% in March. During the week ending March 29, same-store sales plunged 35% but Chipotle noted that sales have improved in April.

The company withdrew its prior fiscal 2020 guidance.

Chipotle shares are down about 6% for the year so far.

Disclaimer: We have no position in Chipotle Mexican Grill, Inc. (NYSE: CMG) and have not been compensated for this article.