Chipotle is soaring: Sales rose 10% last quarter
Its turnaround showing no signs of slowing, Chipotle reported blockbuster financial results on Tuesday.
The company said that sales at stores open at least 13 months grew 10% in the second quarter. During that time, revenue grew 13.2% to $1.4 billion.
The second quarter, which ended on June 30, marks the sixth-straight quarter of comparable store growth, the metric used for stores open for at least 13 months.
Chipotle’s stock rose about 4% after the bell in response to the report. Once marred by E. coli health scares, Chipotle has regained both customer and investor trust.
Earlier this month, shares of Chipotle hit a new all-time high for the first time since August 2015 — before E. Coli sickened customers.
Chipotle CEO Brian Niccol has helped right the ship. Under Niccol, who took over in 2018, Chipotle has added new salad bowls to cater to consumers on paleo and ketogenic diets, and has also introduced more menu options for vegetarians and vegans. It has also expanded its rewards program nationwide, and sales through digital channels have soared. During the second quarter, digital sales grew 99.1% and made up 18.2% of all purchases.
The rewards program “has exceeded our expectations with over 5 million enrolled members,” Niccol said Tuesday during a call with Wall Street analysts.
Customers are both spending more because of menu price increases and visiting stores more often, the company noted. During the quarter, Chipotle also added 19 net new stores. Altogether, it has just over 2,500 locations.
Chipotle is confident that its success will last. The company raised its guidance from mid- to high-single-digit comparable sales growth to high-single-digit growth.