Chipotle raises North American restaurant target to 7,000
Chipotle Mexican Grill is looking to accelerate its expansion by significantly increasing its long-term dining potential.
The Mexican fast-food chain, which owns and operates all of its restaurants, raised its long-term forecast for the number of restaurants it can operate in North America to 7,000 locations from its previous target of 6,000. Chipotle, which announced the news in its earnings release, said that ‘he “raised the goal based on the success of small town locations that offer equal or better unit savings than traditional Chipotle locations.
For 2022, Chipotle plans to open 235 to 250 restaurants, assuming pandemic-related permit and construction delays don’t worsen. The company opened 215 restaurants in 2021, bringing its total to 2,966 by year-end. Of the new restaurants the company opened last year, 81% included a Chipotlane (dedicated drive-thru lanes for picking digital orders).
By 2023, Chipotle expects to be able to accelerate its pace of new units to a range of 8% to 10% per year.
“Given healthy and improving cash returns, we are building a real estate pipeline that will allow us to accelerate unit growth to be in the range of 8% to 10% per year, with more than 80% new restaurants having a Chipotlane,” the company said.
[Read More: Chipotle opening second digital-only store concept]
Chipotle’s net income totaled $133.48 million, or $4.69 per share, in the quarter ended Dec. 31, from $190.96 million, or $6.69 per share, a year ago. a year. Costs increased for beef, avocados and freight in the quarter. Excluding legal fees, closing costs and other items, earnings per share were $5.58 per share, beating analysts’ expectations of $5.25 per share
Revenue rose 22% to $1.96 billion, in line with expectations. Same store sales increased 15.2%. Digital sales increased slightly by 3.8%, accounting for 41.6% of total sales.
“2021 has been a banner year for Chipotle, underscoring the strength and resilience of our brand. Together, we have accomplished many incredible things as our passionate employees have remained committed to delivering great guest experiences aligned with our purpose and values,” said Brian Niccol, President and CEO. accelerating unit growth and continuing to develop and support our restaurant employees will put us in a much stronger competitive position.”
From December 31, 2021Chipotle has $1.4 billion cash, investments and restricted cash, and no debt. He also had access to a $500 million unused credit facility.
Chipotle had more than 2,950 restaurants in December 31, 2021in United States, Canadathe UK, France and Germany.