Chipotle beats quarterly results estimates as digital sales more than triples

Chipotle Mexican Grill Inc posted better-than-expected results on Wednesday and said it would continue to invest in its already-strong digital business and launch new menu items.

With more Americans staying indoors due to the coronavirus health crisis, Chipotle has relied heavily on online orders in recent weeks, building on the digital side of its business to keep sales coming in.

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Chipotle, which has partnered with Uber Eats and GrubHub to bolster deliveries, had added more drive-thru lanes at its restaurants, where customers can pick up orders without leaving their cars.

Digital sales more than tripled for the second quarter ended June 30, accounting for 60.7 per cent of total sales. In the first quarter, online orders made up 26.3 per cent of overall sales.

Total revenue fell 4.8 per cent to $1.36 billion, its first decline in at least 14 quarters, still beating Wall Street estimates of $1.34 billion.

Excluding one-time items, the fast-casual chain earned 40 cents per share, beating average analysts' estimates of 35 cents, according to IBES data from Refinitiv.

Sales from restaurants open for at least 13 months fell 9.8 per cent in the second quarter ended June 30, compared with Street estimates of a 11.65 per cent drop, as a surge in online orders partially offset the decline in foot traffic.