Past food safety issues put a dent on Chipotle’s reputation but now one can safely say that Chipotle has recovered from those events. On Thursday the Chipotle chain reported that they recorded a restaurant sales increase of 9.9 percent for quarter 1 that ended in March 2019. Of significant is the digital sales figures that shows a bump in that sector because the digital sales figures grew by about 100.7 percent and it was accountable for about 15.7 percent of the overall sales for that quarter. According to the CEO of Chipotle, Brian Niccol, these figures represent the fifth consecutive quarter where comps have shown remarkable acceleration and this makes the company to believe that customers respond enthusiastically when they connect with them through culturally relevant marketing with a focus on the great taste and the real ingredients that Chipotle provides. Some stats that were reported was a revenue growth of 13.9 percent to stand at $1.3 billion and an increase of operating margin by 21 percent. The figures show that the digital end of the restaurant chain has a lot to account for the improvement in sales.
Key Takeaways:
- Chipotle has seen an increase in comparable restaurant sales for the five quarter in a row.
- The recent successes for Chipotle appear to be driven by it's digital sales.
- Chipotle's digital sales account for 15 percent of all sales and are up nearly 100 percent since last year.
"Through a combination of delivery, order ahead and catering, the chain's digital sales accelerated from Q4 and grew nearly 101% year-over-year and quarter one."
