On Wednesday, the CMG reported about their massive revenue and earnings which have beaten the expectations of economic analysts. CMG surprised analysts by reporting about the doubling of their digital sales at the time of the first quarter. After the closing of the market, the company shares reached up to 4%.
The CEO of CMG, Brian Niccol said that their mission of winning today and cultivating the future is oscillating as the continuous improvement made by them since a few quarters is giving confidence to them.
The first quarter income reported by Chipotle is $3.13 each share or $88.1 million which is much larger than the previous income of $2.13 each share or $59.4 million overall.
According to a survey done by analysts, the food chain of Mexico earned $3.40 each share excluding the expenses done on corporate restructuring and asset impairment. This survey report has beaten the expectations of $3.01 each share.
In late 2018, the price hikes helped in reduction of beverage, packaging and food costs but got offset due to excess demand for steak.
The net sales have beaten the expected margin $1.27 billion by 13.9% which amounted to $1.31 billion. It was noted that digital sales reached up to 100.7% while quarter, which accounted for 15.7% of overall sales. Executives were not allowed to disclose the number of delivery orders.
The nationwide loyalty program of Chipotle was launched in March. After a few days of this program, the company had beaten worth one million which helped in scoring yearly worth of the company. This program helped increase in downloads of mobile apps, according to one report. The company is planning to use data of consumers for targeting better members for the program.
Niccol said at the earning conference of the company that the growth of the reward program is done through members, which are around 3 million in number.
This program is one of those strategies which are made by Chipotle for building digital engagement. The company is having a partnership with DoorDash which is a third-party service of delivery.