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Chipotle CEO Offers Business Update On 'Mad Money'

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Chipotle CEO Offers Business Update On 'Mad Money'

Chipotle Mexican Grill, Inc. (NYSE: CMG) was well prepared to manage the COVID-19 disruption because of its prior investments in digital and people, CEO Brian Niccol said on CNBC's "Mad Money."

Chipotle's stock trades around $1,050 per share, more than doubling from its year-to-date low hit on March 18.

Digital 'Served Us Well'

Chipotle's prior focus on digital and people "served us well" as the restaurant was positioned to better adapt to the new wants and needs of consumers. The company is now taking a cautious approach towards reopening its stores for dine-in, but management still expects recent digital gains will "remain in good shape."

The continued focus on digital is expected to help the company achieve an average unit volume of $2.5 million, Niccol said. This figure is consistent with historic highs last seen in 2015 and part of Niccol's goals since joining the company from rival Taco Bell in 2018.

"Once we get to $2.5 million our eyes would be on how to go beyond that," he said. "So we are very optimistic with the access we are creating with our digital kitchens and all the digital access points."

Chipotlanes In Action

Niccol said he spent the past two weeks visiting a few markets and a key standout from his checks was the success of the "Chipotlanes" drive-through process. The drive-through lane is reserved for digital orders and focuses heavily on customization and speed.

This will play a big role in Chipotle's growth model moving forward, he said.

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Photo credit: Chis Potter, Flickr

 

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