NEW YORK (AP) – Chipotle said on Thursday that a key second quarter sales outperformed market expectations, helped by higher menu prices, which offset a decline in visitor numbers.
The Burrito The chain is still trying to recover from a series of food scandals that have destroyed their sales. Earlier this year, former CEO of Taco Bell, Brian Niccol, was appointed Chief Executive and another former Taco Bell manager, Chris Brandt, was appointed Chief Marketing Officer.
The new management sought to engage customers with new menu items, including the kind of limited-time fast-food offer that Chipotle had avoided in the past. The company also seeks to expand digital sales through deliveries and its app for recordings.
According to Chipotle, sales in established restaurants increased 3.3 percent, exceeding the analysts' expected 2.7 percent, according to FactSet. The increase was mainly due to a 4 percent increase in menu prices and customer orders, with a Tex Mex cheese dip recently added to the listings. Store customer visits down 1.8 percent in the quarter
Total revenue increased 8.3 percent to $ 1.3 billion, mainly due to new restaurant openings.
Denver-based chipotle Mexican Grill Inc. shares rose 6 percent to $ 475 -our trading
Niccol said the company had been encouraged by a 33 percent increase in online sales, which now make up 10 percent of sales. The company said that delivery sales quadrupled during the quarter. The delivery service is now available in 1,700 stores from Chipotle, which will be expanded to 2,000 by the end of the year.
Customers spent an average of around $ 16 to $ 17 per online sale, compared to $ 12 in restaurants. 19659002] Net income decreased 30 percent to $ 46.9 million due to restructuring charges.
Earnings per share fell 27 percent to $ 1.68. Excluding these costs, net income was $ 2.87 per share. According to FactSet, this exceeded analysts' expected $ 2.81 per share. (19659002) (© Copyright 2018 The Associated Press, All Rights Reserved.) This material may not be published, transmitted, rewritten or redistributed.)