Chipotle shares hit a record high above $1,000 as the company sees strong delivery momentum
- Chipotle shares hit a record high on Monday as the stock passed the $1,000 level for the first time ever.
- Chipotle has seen strong momentum in its delivery business as the coronavirus pandemic has forced restaurants across the country to close its dining rooms and shift to pick-up and delivery only.
- Shares of Chipotle have surged 140% from their March 18 low of $415.
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Chipotle hit a record high and passed the $1,000 level for the first time ever on Monday.
Investors seem to still be impressed by Chipotle's first quarter results announced on April 21, which showed its ability to pivot to digital sales as restaurants across the country were forced to close their dining rooms amid the coronavirus pandemic.
Chipotle surged to $1,017 Monday, up 140% from its March 18 low of $415.
Chipotle saw digital sales increase 81% in the first quarter, representing 26.3% of its total sales as the company launched new marketing campaigns focused on delivery incentives.
As Chipotle's shift to delivery picked up in March, it saw digital sales jump more than 100%, representing 37.6% of its total sales.
Chipotle sees the momentum continuing. On its earnings call, CEO Brian Niccol said:
"We believe this will have a lasting benefit well beyond the current crisis and are pleased to report that we have maintained strong momentum into April with the month-to-date digital mix [percent of total sales that are digital] running in the high 60s."
Additionally, the company saw participation in its loyalty program skyrocket, with daily sign-ups nearly quadrupling. Chipotle now has 11.5 million members in its loyalty program.
Chipotle management highlighted that the recent surge in its loyalty program membership is already being leveraged to create longer-term growth.
The company is running personalized promotions to help increase order frequency and expand volumes in its higher-margin order-ahead segment.
Shares of Chipotle followed the market higher by as much as 4.6% in early morning trading on no company-specific news.
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