Chipotle Mexican Grill Inc. seemed to have one of the best financial quarters according to what it revealed in the revenue report. Quite amazingly, the company maintained the growth it has been having in the last years, but there are raising concerns for sure. For instance, it was found that Chipotle stores had sold around 11% more products when compared to the previous year. This is a huge amount, considering that analysts had predicted a same-store growth of 9.3% only. Not only that, the company is confident about the full-year results as well. However, there are concerns.
The biggest concern for Chipotle is the fact that the price for delivery and regular wages are rising. Chipotle would have figure out a way to manage both these numbers together in a way that users don’t have much of a trouble. This is because the company found both the digital and traditional channels to be contributing well to the revenue. For instance, it was found that digital sales last year saw an increase of 88% when compared to the previous year. At this point in time, Chipotle is relying on Postmates and DoorDash to get its products delivered.
The company noted that it had added a number of in-store features that dramatically boosted the delivery and other sales window. Chipotle also added that it is working full-time to improve the general situation of the stores in such a way that the overall speed could be improved and some of these stores won’t open until 2020 so that they can be equipped with the right infrastructure. Chipotle also mentioned the concern in the aspect of wage rises. While the company is expecting no big changes in commodity prices, the factors above would have an impact on the company, working in a market of fierce competition.
Norman Pearlstine is the Chief Editor of News Raise and focuses on Business news. His responsibility is to oversee the editorial content including business, commodities, personal investments and the stock market.
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