Chipotle is searching its menu for “hidden gems.”
CA — NEWPORT BEACH — Two TikTok content makers served as the inspiration for a new menu item that Chipotle Mexican Grill, Inc. debuted earlier this year. The basic quesadilla, which usually consists of cheese and pork, beef, chicken, or tofu, is enhanced with peppers, onions, and a side of the chipotle-honey vinaigrette that is usually provided with its salads. The fajita quesadilla is only available digitally.
According to Brian R. Niccol, chairman and CEO of Chipotle, the product’s ingenuity lies in the fact that it is prepared using already-existing components in the restaurants’ kitchens. It is a permanent addition to the menu. The digital ordering technique only needed to be adjusted a little.
This was, for the most part, a quite simple one for operators to carry out, Mr. Niccol stated on an April 25 earnings call. In order to find more opportunities like that within our menu, the team is working on it. They may even apply for both the frontline and the digital line. I think the Chipotle menu still has a lot of undiscovered treasures. Additionally, I believe we have the chance to discuss them in a more open manner.
He went on to say that the introduction of the fajita quesadilla produced “two of our top digital sales days of all time” and nearly doubled overall quesadilla sales.
Opportunities to bring in simple innovation are a top priority as management keeps its attention on the core elements of its business. Another example is a limited-edition chicken al pastor dish that combines the brand’s grilled chicken with a hot marinade. According to Mr. Niccol, the item has proven to be “broadly appealing” to both new and returning clients.
Net income increased by 84% to $291.6 million, or $10.56 per share on common stock, for the first quarter that ended on March 31 from $158.3 million, or $5.64, for the same time the previous year. According to chief financial officer John R. Hartung, increased sales, improved labour efficiency, and decreased avocado pricing all helped restaurant-level margin.
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The total revenue rose from $2 billion to $2.4 billion, a 17% increase.Comparable restaurant sales rose by 11%, while internet sales accounted for 39% of total sales and in-store sales jumped by 23% over the previous year. During the quarter, the company opened 41 new restaurants.
Executives anticipate 255 to 285 new restaurant openings in 2023, with comparable restaurant sales growth in the mid- to high-single-digit range for both the second quarter and the entire year.On April 26, shares of Chipotle Mexican Grill reached a high of $2,047.31 on the New York Stock Exchange, up 15% from the previous day.