Chipotle Mexican Grill is encouraged by the strength of its digital sales, even when its canteens open after coronavirus-related closures, Jack Hartung, the chief financial officer, told television on Friday.
“The pandemic, of course, put a bit of turbocharging behind our digital business, but as we begin to see Covid move behind us – and we still have a long way to go – we keep most of this digital business, about 80%, “Hartung said in an interview with Closing Bell.
“Then, as dinners opened, we recovered about 60 percent of what we lost when the pandemic began,” added Hartung, who joined Chipotle nearly two decades ago. “So, really, we will end up ahead of the game when [the] the pandemic is behind us. We are very optimistic about where we are going from here. “
Customers turned to Chipotle’s online ordering options during the Covid crisis. The fast-track chain saw a 174% year-over-year increase in digital sales in 2020, which helped increase 7.1% of total revenue. Digital sales accounted for 46.2% of the California-based company’s sales last year, compared to 18% of 2019 sales.
In November, Chipotle opened its first digital-only restaurant. More recently, he put quesadillas on the menu, but the long-awaited addition is only available for online orders.
Earlier this week, Chipotle announced an expansion of its debt-free college program for employees. He now includes degrees in agriculture, cooking and hospitality.
Hartung said Chipotle has had positive results since he introduced the educational initiative almost two years ago.
“When our people take advantage of these debt-free programs, they are 3½ times more likely to stay with us and are seven times more likely to move in the direction, so we see this as an investment in our people.” Said Hartung.
Chipotle shares closed Friday’s session modestly at about $ 1,531 per piece. Shares have risen 10.4% to date and almost 100% in the last twelve months.