Chipotle expects sales surge this quarter, builds on 17.2% first-quarter growth

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Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia
Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia, Pennsylvania, U.S. November 22, 2019. REUTERS/Mark Makela

April 21 (Reuters) - Chipotle Mexican Grill Inc (CMG.N) on Wednesday said its comparable sales this quarter could grow by as much as 30% as rapid COVID-19 vaccinations encourage consumers to return to its restaurants that offer quick service in a casual dining space.

Shares rose slightly in after hours trading after the burrito chain reported comparable sales rose 17.2% in the first quarter, helped by new menu items like quesadillas and consumers' using federal pandemic relief funds to order tacos and salads online.

Digital sales surged nearly 134% in the first quarter and accounted for half of overall sales, the company said on Wednesday.

The company's digital sales have grown rapidly during the pandemic, encouraging it to expand order-ahead lanes called "Chipotlanes" to a majority of its restaurants in the United States.

Revenue rose 23.4% to $1.74 billion, matching analyst estimates, according to IBES data from Refinitiv.

While the company reiterated that it expects to open about 200 new restaurants in 2021, it continued to shy away from issuing full-year revenue and sales forecasts.

Reporting by Nivedita Balu in Bengaluru; Editing by Arun Koyyur

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Hilary Russ writes about global restaurant chains including McDonald's and Starbucks. She previously covered sports betting, as well as municipal bonds, public finance and infrastructure. Hilary previously worked at Law360 covering corporate bankruptcies, white collar crime and the U.S. Supreme Court. At The Cape Cod Times and City Limits, she covered local courts, general news and social and public policy issues. She is an avid bird watcher.

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