A customer wearing a protective mask enters the Chipotle Mexican Grill Inc. restaurant. of San Francisco, California. .
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill reported on Tuesday that in-store sales increased more than 5% in its last quarter, driven by increased digital orders and the return of roast meat.
Citing the uncertainty caused by the coronavirus pandemic, the company declined to provide a forecast for sales growth in the same store during fiscal 2021, but said it expects a strong first quarter.
Chipotle shares fell 4% in expanded trading. The shares reached an all-time high of $ 1,553.55 during the previous trading on Tuesday.
This is what the company reported during the quarter ended Dec. 31 compared to what Wall Street expected, according to a survey by Refinitiv analysts:
- Earnings per share: $ 3.48, adjusted, versus $ 3.73 expected
- Revenue: $ 1.61 billion versus projected $ 1.61 billion
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 posted an income tax benefit of $ 3.77 during the quarter.
Excluding income tax profit, corporate restructuring expenses and other items, Chipotle earned $ 3.48 per share, missing the $ 3.73 per share expected by analysts surveyed by Refinitiv.
Net sales rose 11.6% to $ 1.61 million, meeting expectations.
Sales at the same store increased 5.7%. The return of their roast meat in September boosted demand. In addition, digital sales nearly tripled and accounted for nearly half of the company’s quarterly revenue. In the second and third quarters of Chipotle, online sales more than tripled.
As of January, sales in the same stores have risen 11%. And if the pandemic doesn’t get worse, the company expects in-store sales growth in mid- to high-teens during the first quarter.
The company also said it raised menu prices for delivery orders. Third-party apps like DoorDash charge restaurants a commission to consume their profits. Chipotle had said in previous quarters that the higher incidence of crisis-driven delivery orders had hurt its profit margins.
The company opened 61 new offices during the quarter, moved two restaurants and closed one. Prosecutor 2021, Chipotle plans to open about 200 new restaurants, assuming he finds few crisis-related construction delays and permits.
Read the full earnings report here.