fbpx

Chipotle’s digital sales climb 66 percent

Home/English/Chipotle’s digital sales climb 66 percent

Chipotle’s digital sales climb 66 percent

Chipotle Mexican Grill reported late Wednesday afternoon that its efforts in digitizing its restaurant experience is paying off as revenue increased 10.4 percent to $1.2 billion and that same-store sales were up 6.1 percent in fourth quarter, ended Dec. 31, 2018.

“I’m very pleased to report strong fourth quarter results with 6.1 percent comparable restaurant sales growth that included 2 percent transaction growth. For the full year, Chipotle’s average unit volumes exceeded $2 million with digital sales surpassing half a billion dollars,” CEO Brian Niccol said during an investor call. “The growth acceleration this quarter gives us confidence that our strategy is working.”

That strategy includes a continued focus on digitizing and modernizing the restaurant experience with enhanced access and less friction, Nicool said. For example, the chain added digitized make lines in more than 1,000 restaurants last year and will implement them in the rest by the end of  2019. It also deployed digital pickup shelves in 1,000 restaurants and is planning to roll them out in all locations by the middle of 2019.

Those operational changes helped to increase digital sales 66 percent year-over-year, which hit $158.6 million during the fourth quarter. They represented 12.9 percent of sales an acceleration from 48 percent in Q3.

“For the full year, digital sales exceeded a half a billion dollars and accounted for 10.9 percent of sales,” Niccol said. “App downloads increased 72 percent year-over-year in 2018 and we continue to see strong interest from new infrequent as well as frequent guests at Chipotle.”

Delivery is also a key area for the chain, which saw sales increase 13 times compared to the fourth quarter of 2017.

  • Digital sales grew 42.4 percent and accounted for 10.9 percent of sales.
  • Restaurant level operating margin was 18.7 percent, an increase from 16.9 percent
  • Diluted earnings per share was $6.31, a 2.3 percent increase from $6.17. Adjusted diluted earnings per share was $9.06, excluding the impact of restaurant closure costs, corporate restructuring, and certain other costs, a 33.0 percent increase from $6.81. 1.
  • Opened 137 restaurants and closed or relocated 54.
  • Fullyear 2018 highlights, year over year:
    • Revenue increased 8.7 percent to $4.9 billion.
    • Comparable restaurant sales increased 4.0 percent, net of a 0.8 percent decline in comparable restaurant transactions.
    • Digital sales grew 42.4 percent and accounted for 10.9 percent of sales.
    • Restaurant level operating margin was 18.7 percent, an increase from 16.9 percent
    • Diluted earnings per share was $6.31, a 2.3 percent increase from $6.17. Adjusted diluted earnings per share was $9.06, excluding the impact of restaurant closure costs, corporate restructuring, and certain other costs, a 33.0 percent increase from $6.81. 1.
    • Opened 137 restaurants and closed or relocated 54.

 

Source: Fast Casual

 

By | 2019-02-25T23:08:23+00:00 February 25th, 2019|English|