Chipotle Mexican Grill is encouraged by the strength of its digital sales, even though the dining rooms are open to coronavirus-related closures, CFO Jack Hartung told CNBC on Friday.
“Of course, the pandemic has put some turbo-delivery behind our digital business, but as we begin to see Covid move behind us – and we have another way to go – we retain most of the digital business, approximately 80%, “Hartung said in an interview with ‘Closing Bell’.
“When the meals reopened, we … got back about 60% of what we lost when the pandemic started,” added Hartung, who joined Chipotle nearly two decades ago. ‘So, really, we’re finally going to be ahead when [the] pandemic is completely behind us. We are very optimistic about where we are going from here. ‘
Customers flocked to Chipotle’s online ordering options during the Covid crisis. The fast chain had a 174% year-on-year increase in digital sales in 2020, bringing a 7.1% increase in total revenue. Digital sales accounted for 46.2% of the California company’s sales last year, compared to 18% of sales in 2019.
In November, Chipotle opened its first ever digital restaurant. More recently, it has put quesadillas on its menu, but the long-awaited addition is only available for online orders.
Earlier this week, Chipotle announced an expansion of its debt-free college degree program for employees. It now includes degrees in agriculture, cooking and hospitality.
Hartung said Chipotle has achieved positive results since launching the education initiative nearly two years ago.
“If our people use these debt-free programs, they are likely to stay with us 3 times more and are seven times more likely to move into management, so we see it as an investment in our people,” he said. Hartung said.
Shares of Chipotle closed Friday’s session at $ 1,531 a share. The share has risen by 10.4% over the past 12 months to almost 100% and over the past 12 months.