Chipotle is now an ecommerce burrito company — so the stock jumped 12%
Guac is virtual... Chipotle was feeling the pain of the corona-crisis: after two months of double-digit growth, its sales dropped 35% during the last week of March. But the burrito legend stuck to its guns and saw the bowl half full — it even bumped hourly employee pay by 10% and doled out bonuses. Most importantly, though... it went extra digital this quarter:
- 3%: How much Chipotle’s same-store sales increased.
- 81%: How much digital sales jumped for the quarter.
- 100%: How much digital sales jumped in March alone — online orders 2X’d.
A techy burrito factory… Chipotle has been turning into one, and the transformation has accelerated while its tables are closed:
- App Game: Chipotle upgraded its app and promoted its Rewards program, which now has 11.5M members. Daily sign-ups 4X'd in April — 65% of those new loyalists are first-time Chipotleans.
- Delivery Game: Chipotle partnered with DoorDash, so you can get your tortilla-wrapped barbacoa delivered. In March, it added Uber Eats as a partner and began offering free delivery.
- Takeout Game: Over a year ago, Chipotle created drive-thru "Chipotlanes" for fast pickup post-mobile order. Nuff said.
A new leader can completely change a company's direction... CEO Brian Niccol (formerly Taco Bell's leader) took Chipotle down a completely different Chipotlane. In the 2 years before he became CEO, Chipotle's stock fell 60%. In the 2 years since, Chipotle is up 246% thanks to Niccol's forward-looking biz moves (shoutout Chipotlanes). Niccol may not be a gourmet foodie, but his digital strategy is coming in clutch.