Visitors return to Chipotle Mexican Grill restaurants

Chipotle Mexican Grill Inc. (CMG), a chain of Mexican restaurants, reported double-digit sales growth in the first quarter. The growth driver was the return of visitors to restaurants after a long “pandemic” break. Total sales of Chipotle Mexican Grill in the first quarter increased by 16% year-on-year, to $2 billion. Comparable sales increased by 9% year-on-year, while sales directly in restaurants were 33% more compared to the same quarter last year.

This is because visitors who have mostly ordered food home for many months are now returning to restaurants again. However, this circumstance does not prevent Chipotle Mexican Grill from maintaining strong digital sales. Currently, they account for 42% of the network’s total sales. Chipotle Mexican Grill’s non-GAAP net income increased by 5% year-on-year to $161.4 million, which corresponds to $5.7 per share.

Chipotle Mexican Grill announced that the board of directors has approved a new program for the repurchase of shares for the next quarter in the amount of $300 million should note that at the end of March, another $280 million from the previous buyback program remained at the disposal of the company. If current sales trends continue, Chipotle Mexican Grill plans to record 10-12% growth in comparable sales for the entire year.

The company plans to open about 250 new restaurants in the coming months. It opened 51 new retail outlets in the first quarter. Thanks to the developed system of digital orders, Chipotle Mexican Grill could survive the difficult period of the pandemic. Now almost all restrictions have lifted, and visitors are returning to restaurants, and the chain can count on even more active sales, since the receipt at the point of sale is higher than with an electronic order. An increase in the buyback program may show that the company is confident in its financial performance.