Chipotle Mexican Grill (NYSE:CMG) has been hot recently. Yesterday the stock hit a record high, going over $1,000 per share for the first time.
Some like it spicy
The Mexican-food restaurant chain has been able to adjust its operations to handle digital orders and move into takeout and delivery mode. Most orders during the the period were to-go, and only around 100 restaurants closed during the current pandemic.
Chipotle released first-quarter earnings results on April 21 for the period ending March 31. Revenue increased 7.8% to $1.4 billion and comps increased 3.3%, which reflected weaker comps in March. Digital sales increased 80% and accounted for 26.3% of sales.
The company's share price dropped in March as low as $415 from a year-to-date high of $934, but came back up to break $1,000, hitting $1,017 in trading on Monday.
Building the brand
One of the highlights of the first quarter was an increase in loyalty program members. In the month before the earnings release, daily sign-ups almost quadrupled. In the first quarter, 65% of new members were new to Chipotle, and 61% of previously in-store members joined digital. The company opened 28 stores during the first quarter and has another 49 in progress.
CEO Brian Niccol said, "Cultivating a better world takes commitment from all of us, and we are fortunate to have the financial strength to weather this storm."
Chipotle stock closed on Monday at $998.58.