Chipotle’s revenue drops due to coronavirus-related expenses
On Wednesday, Chipotle Mexican Grill Inc. (CMG.N) reported that its quarterly revenue went down by almost 18.6%. The American fast-food restaurant said that the company shouldered higher beef prices and overpriced delivery costs amid the coronavirus pandemic.
According to IBES data from Refinitiv, the company’s sales climbed by 8.3% beating Wall Street’s expectations of a 7.59% rise.
“Between now and next year… if delivery shifts into in-store and shifts into order-ahead and pick-up, then I’d say our margins per share are headed on the way up,” Chipotle’s Chief Financial Officer John Hartung said in an interview.
“If delivery stays the same or increases, we’ll have some challenges,” he added.
According to Chipotle’s Chief Executive Officer Brian Niccol, the restaurant’s digital sales could exceed almost $2.5 billion by the end of the year.
Chipotle’s shares went down by 6% in the afternoon trading.