Chipotle surpassed Wall Street’s expectations when they posted their first-quarter earnings of 2021. Apparently, their knight in shining armor was their digital sales, which more than doubled during the pandemic.
Due to hordes of people being forced to stay at home, Chipotle could’ve crumbled in the wake of these changes. Instead, they adapted and innovated their system, and as a result found that their loyal customers continued to buy from them, albeit remotely.
Chipotle’s digital sales were at a whopping $869.8 million this year, which was spearheaded by order-ahead transactions and “Chipotlanes” for drive-through customers. All in all, their digital sales accounted for over half of their sales, a shocking but optimistic statistic.
“As vaccines roll out and we get closer to moving past this pandemic, I believe Chipotle is well-positioned for growth,” Brian Niccol, Chipotle Chairman and CEO Brian Niccol divulged.
Niccol continued, “I’m excited about our future as we remain focused on innovating in culinary, leading in food with integrity, and providing convenient access inside our restaurants and through our expanding digital ecosystem.”
In addition to embracing new digital means of sales, Chipotle also introduced a new product: the Hand-Crafted Quesadilla. Leaning into the digital trend, this menu item could only be ordered online. Perhaps this too was another factor in their Q1 success.
As you might expect, Chipotle’s stock rose dramatically as a result in after-hours trading.
