When same-store sales are growing, each of Chipotle’s existing restaurants is attracting more customers year-over-year. Same-store sales are a function of traffic and ticket. To learn more about how traffic and ticket impact same-store sales, see What Drives Restaurant Same-Store Sales?
So what’s Chipotle Mexican Grill doing differently to attract more customers? During the company’s fourth-quarter earnings call of 2018, CEO Brian R. Niccol credited the company’s culturally relevant marketing, its focus on great taste and real ingredients, and boosting customer convenience by reducing friction in the process for strong SSSG.
Is the CEO strategy working?
Brian Niccol joined Chipotle in February 2018, when the company was going through a rough period after the series of food-safety issues. But Niccol, with his focus on five key strategies, has managed to turn things around. He emphasizes visibility, strong culture, leveraging digital advancements, engaging with customers with loyalty programs, and innovating new menu items.
And all these initiatives have led to Chipotle delivering strong same-store sales over the last few quarters. The company reported SSSG of 9.9%, 10%, and 11% in its first, second, and third quarters of 2019, respectively.
In comparison, Chipotle’s peers, Shake Shack, McDonald’s, and KFC under the umbrella of Yum! Brands have reported SSSG of 2.0%, 5.9%, and 3%, respectively, in the third quarter of fiscal 2019.
Now let’s look at what stands out about Chipotle Mexican Grill’s ingredients. And we’ll also look at what getting food from sustainable sources means for CMG investors.
View more information: https://marketrealist.com/2019/12/investors-guide-chipotle-and-its-customers/