A customer wearing a protective mask enters a Chipotle Mexican Grill Inc. restaurant. in San Francisco, California. .
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill reported on Tuesday that its sales in the same store increased by more than 5% in the most recent quarter, fueled by higher digital orders and the return of carne asada.
Referring to the uncertainty caused by the coronavirus pandemic, the company did not want to make a forecast for sales growth in the same store in fiscal 2021, but said it expects a strong first quarter.
Shares of Chipotle fell 4% in extended trading. The stock reached a high of $ 1,553.55 earlier on Tuesday.
This is what the company reports for the quarter ended December 31, compared to what Wall Street expected, based on a survey of analysts by Refinitiv:
- Earnings per share: $ 3.48, adjusted, compared to $ 3.73 expected
- Revenue: $ 1.61 billion versus $ 1.61 billion expected
Chipotle reported fourth-quarter net income of $ 190.9 million, or $ 6.69 per share, compared to $ 72.4 million, or $ 2.55 per share, a year earlier. The company recorded an income tax benefit of $ 3.77 for the quarter.
Chipotle earns $ 3.48 cents per share, excluding an income tax benefit, corporate restructuring expenses and other items, and lacks the $ 3.73 per share expected by analysts surveyed by Refinitiv.
Net sales increased 11.6% to $ 1.61 billion, which met expectations.
Sales in the same store increased by 5.7%. The return of its carne asada in September boosted demand. In addition, digital sales nearly tripled, accounting for nearly half of the company’s quarterly revenue. In Chipotle’s second and third quarters, online sales more than tripled.
So far in January, sales of the same stores have risen by 11%. And if the pandemic does not worsen, the company expects growth in the same stores in the mid to high teens in the first quarter.
The company also said it has increased menu prices for delivery orders. Third-party programs like DoorDash charge restaurants a commission fee, which yields their profits. Chipotle said in previous quarters that the higher incidence of delivery orders fueled by the crisis had hurt its profit margins.
The company opened 61 new locations during the quarter, relocated two restaurants and closed one. In fiscal 2021, Chipotle expects to open about 200 new restaurants, assuming it experiences few constructions and delays related to the crisis.
Read the full earnings report here.