A customer wearing a face mask enters a Chipotle Mexican Grill Inc. restaurant in San Francisco, California. .
David Paul Morris | Bloomberg | Getty Images
Chipotle Mexican Grill reported on Tuesday that its same-store sales increased more than 5% in the last quarter, driven by higher digital orders and the return of roast beef.
Citing the uncertainty caused by the coronavirus pandemic, the company declined to provide a forecast for same-store sales growth in fiscal 2021, but said it expects a strong first quarter.
Chipotle’s shares fell 4% in extended trades. The stock hit a historic high of $ 1,553.55 during Tuesday’s trading.
Here’s what the company reported for the quarter ended December 31, compared to what Wall Street expected, based on a survey of analysts at Refinitiv:
- Earnings per share: $ 3.48, adjusted, against $ 3.73 expected
- Revenue: $ 1.61 billion versus expected $ 1.61 billion
Chipotle reported fourth quarter net income of $ 190.9 million, or $ 6.69 per share, up from $ 72.4 million, or $ 2.55 per share, a year earlier. The company recorded an income tax benefit of $ 3.77 in the quarter.
Excluding an income tax benefit, corporate restructuring expenses and other items, Chipotle earned $ 3.48 cents per share, losing the $ 3.73 per share expected by analysts surveyed by Refinitiv.
Net sales increased 11.6% to $ 1.61 billion, meeting expectations.
Same store sales grew 5.7%. The return of roast beef in September boosted demand. In addition, digital sales almost tripled, increasing 177% compared to the same period last year, and accounting for almost half of the company’s quarterly revenue. Online sales increased 216% in Chipotle’s second quarter and 202% in the third.
In January, same-store sales grew 11%. And if the pandemic doesn’t worsen, the company expects same-store sales to grow in the mid to high range during the first quarter.
The company also said it had increased menu prices for delivery orders. Third-party apps like DoorDash charge restaurants a commission fee, reducing their profits. Chipotle had said in previous quarters that the higher incidence of delivery orders fueled by the crisis has hurt its profit margins.
The company opened 61 new locations during the quarter, relocated two restaurants and closed one. In fiscal year 2021, Chipotle expects to open some 200 new restaurants, assuming it finds few construction delays and licenses related to the crisis.
Read the full earnings report here.