Chipotle Proves Move to Digital Is 'Key,' Jim Cramer Says
Chipotle reported second-quarter earnings.
Amid the coronavirus pandemic, which has largely prevented restaurants from allowing customers to sit inside for meals, Chipotle's digital sales tripled in the quarter and accounted for three-fifths of its total sales.
The quarterly adjusted earnings were down 90% from the year-ago period.
Adjusted earnings per share came in at 40 cents versus FactSet expectations for 35 cents. Revenue came in at $1.36 billion versus $1.34 billion.
Chipotle's digital sales were up 216% and the delivery orders were up 125% in the quarter.
Chipotle said in mid-July that it planned to hire as many as 10,000 staffers over the next few months, including both hourly and salaried management positions.
"I want to thank all of our employees for delivering excellent guest experiences, supporting our restaurants, and supporting each other during these challenging times," said Brian Niccol, Chairman and CEO of Chipotle. "Our investment in digital over the past few years has provided our customers with convenient access to Chipotle how and where they want it. We'll continue to invest in elevating the digital experience, including opening more Chipotlanes, while innovating with new culinary offerings such as cauliflower rice, organic beverages and quesadillas. I'm confident we will finish 2020 with good momentum and be well-positioned for the long run."
Jim Cramer's biggest takeaway? The move to digital is "key." Catch his full earnings breakdown in the video above.
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Editor's Note: This article has been updated per a clarification from Chipotle, the 125% delivery increase occurred in the quarter.