Chipotle Mexican Grill has reportedly announced that its digital sales have tripled during the second quarter of 2020 as more and more customers have opted to order food online amid the coronavirus pandemic. The company’s quarterly adjusted earnings have, however, witnessed a 90 per cent decline as compared to the previous year owing to the ordered closure of dining rooms.
Chipotle has, therefore, taken steps to collaborate with third-party delivery providers, including Uber Eats and Grubhub, that has helped the company to bring in more customers and propel order growth. In the light of this move, the company has seen a rise of almost 125 per cent on its delivery orders during the second quarter of 2020.
According to Jack Hartung, the CFO at Chipotle, the company has also decided to tweak delivery prices to indemnify the commission fees charged by these third-party delivery providers.
Amid the pandemic, the company’s sales have registered a drop of 4.8 per cent amounting to $1.36 billion. However, the company has also witnessed a surge of 216 per cent that accounts to around 60.7 per cent of its overall sales during the mentioned period.
While Chipotle’s customers have ordered more burritos, steak, and bottled beverages than usual, the company’s revenues have registered a remarkable rise for food, beverages, and packaging. Sources state that the company has earned as much as 40 cents per share during this period and has pledged to add around 10,000 new employees to its workforce over the next several months, witnessing the exploding digital orders.
As reported, there has been a fall of 1 per cent in the company’s extended trading and its burrito chain has recorded a net income of $8.2 million. Chipotle’s operating margins have also fallen by 8.7 per cent to 12.2 per cent during the second quarter due to the temporary jolt to worker pay and the higher volume of third-party orders.