Chart: Americans canft stop eating Chipotlefs burritos
By Roberto
A. Ferdman
July 22 at 6:01 AM - The Washington Post
There are few things as smooth as Chipotle's ability to sell more and
more burritos seemingly each day, week and month, but certainly each quarter and
every year.
The Mexican fast food chain, which now slings billions of dollars
in burritos (and burrito bowls) each year, saw its second quarter sales
jump by 29 percent compared to the same period last year.
Chipotle's performance didn't merely beat analyst estimates — it crushed
them. The chain was forced to raise its prices earlier this year, after
rising food costs swallowed a hefty chunk of the company's profits. The
expectation was that it would have a negative impact on store traffic, but
instead same-store sales — sales at Chipotle restaurants open for at least 13
months — jumped by 18 percent.
Chipotle's annual sales are now expected to nearly eclipse $4 billion in
2014, according to Bloomberg estimates. That would mean 1,143 percent growth
since 2003, and 377 percent growth since 2006, when the company went public. By
2018, Chipotle's sales are slated to jump another 43 percent to more than
$6.5 billion.
Sales growth has also significantly outpaced sheer restaurant growth (by a
factor of almost two to one), meaning that there aren't merely more Chipotles
today, but each Chipotle is also selling more burritos on average than it used
to.
Chipotle's unstoppable growth is actually fairly inconsistent with that of
the rest of the American fast-food industry. McDonald's has struggled to lure
Americans as of late — its U.S. sales are expected to decline for a third consecutive quarter. Taco Bell, too — sales jumped
after the launch of the Doritos Locos Tacos, but they have since fallen. In fact, the fast-food sector
just isn't doing all that well in the U.S. right now.
Why has Chipotle managed to grow so quickly? Mainly, the chain has
capitalized on a bet that Americans were willing to pay a little more money for
a lot more assurance about the origins of their fast food. The company's message has carried with it a firm commitment
to ingredients, animal treatment and the environment. While some have questioned
the extent to which the chain follows through with that mission, it's hard to
deny that it has resonated with American fast-food goers. Chipotle is
also phenomenally fast as slinging burritos — it's most efficient branches can
serve 350 customers per peak lunchtime hour. And it has fared
well in an increasingly carb-conscious America by offering its popular tortilla-less burrito bowls.