Chipotle Mexican Grill’s first fiscal quarter report reveals estimate-beating results with net income coming at $88.1 million, or $3.13 per share, up from $59.4 million, or $2.13 per share a year earlier.
Other key highlights of the quarter include: $3.40 adjusted earnings per share versus expected $3.01, revenue at $1.31 billion versus expected $1.27 billion, same-store sales growth of 9.9% versus expected 7.29%, 13.9% rise of net sales to $1.31 billion versus expected $1.27 billion, and 100.7% rise of digital sales growth during the quarter accounting for 15.7% of total sales.
Another key highlight of the quarter includes the success of Chipotle’s points-based loyalty program that crossed 1 million subscriptions a week after its launch in March. However, the loyalty program is only one part of the company’s digital strategy as it partnered with a third-party delivery service called DoorDarsh that saw customer retention even after the promotion ended.
For the fifth consecutive quarter, Chipotle reported same-store sales growth driven by a 5.8% increase in restaurant transactions. The company has now raised its same-store sales growth outlook for 2019 now forecasting mid-to-high single-digit sales growth at stores open at least a year.
The company closed down 2 stores at different locations during the quarter, but opened 15 new stores during the quarter, bringing its total restaurant count to 2,504. Further, Chipotle reiterated its forecast of opening between 140 to 155 stores during 2019.