Chipotle Slips as Results Leave Investors Wanting

By Christiana Sciaudone

The burrito chain fell about 5% despite posting revenue of $1.6 billion that topped estimates. The company noted that its delivery service ate into profits, despite digital sales tripling to account for almost half of all sales in the period.

Cowen’s Andrew Charles noted “CMG’s decision not to guide to an acceleration in 4Q comps over what we believe to be easing November/December compares reflects conservatism from a potentially prolonged election result as well as rising COVID-19 cases,” according to TheStreet.com.

Chief Executive Officer Brian Niccol said digital sales could exceed $2.5 billion in 2020 if the current pace continues. That would be more than double last year’s total.

Chipotle is testing out some price increases for delivery orders to offset the higher costs associated with those orders, Chief Financial Officer John Hartung said.

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