Chipotle posts record sales after hiking prices
Chipotle says new menu items are contributing to more folks flocking to the chain
Chipotle is shaking up the fast food world with their addition of brisket
Jack Hartung, Chipotle's CFO, announces Chipotle's newest meaty addition of brisket to the menu. Jack also joins 'Cavuto: Coast to Coast' to discuss the rising prices of the menu to offset labor costs and Chipotle's core crowd.
Chipotle Mexican Grill saw record sales in its third quarter with boosts in both online and in-store sales, despite raising prices on their menu.
The fast-casual chain saw revenue jump 21.9% year-over-year to $2 billion, which it says was driven by comparable restaurant sales increasing 15.1%. The firm's earnings per share hit $7.18, which was a 154.6% increase from Q3 of 2020.
A customer exits a Chipotle restaurant in Santa Clara, California, U.S., on Tuesday, Oct. 19, 2021. Chipotle Mexican Grill Inc. is scheduled to release earnings figures on Oct. 21. Photographer: David Paul Morris/Bloomberg via Getty Images (David Paul Morris/Bloomberg / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CMG | CHIPOTLE MEXICAN GRILL INC. | 61.74 | -0.29 | -0.47% |
CHIPOTLE FACING ‘CHALLENGING LABOR ENVIRONMENT,’ PROMPTS ‘BIG ACTION’: CFO
Chipotle said that boosting their prices helped offset higher costs, namely from beef and freight.
"Chipotle's third quarter results demonstrate strong momentum in our business fueled by a multi-pronged strategy and a passionate team that's delighted to welcome more guests back into our restaurants," Chipotle chairman and CEO Brian Niccol said in a statement.
"Our team has proven their ability to be resilient and successfully execute against macro complexities," Niccol continued. "As a result, I believe we are better positioned to drive sustainable long-term growth than ever before, which makes me excited about what we can accomplish in the years ahead."
MIAMI, FL - APRIL 27: (Photo by Joe Raedle/Getty Images) (Getty Images/ Joe Raedle / Getty Images)
CHIPOTLE'S SMOKED BRISKET GETS TWITTER – AND CRITICS – TALKING
Chipotle said it also attributed much of its success in Q3 to new menu items. The company introduced cauliflower rice as an option earlier in the year, and made a lot of buzz with favorable reviews for its recent limited-time offering of smoked brisket as a protein.
But the brisket won't be around for long. Chipotle said the beef cut will "be for a partial quarter this year as compared to the full quarter of carne asada last year."
Chipotle's new smoked brisket (Chipotle Mexican Grill)
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Chipotle also announced that its board of directors granted approval for the repurchase of up to an additional $100 million of common stock.