In 2023, Chipotle’s earnings exceeded all expectations…
Here’s what that means for the future of the company.
What The Chipotle Earnings Report Tells Us
Despite other fast food franchises slowing down in foot traffic and revenue…
Chipotle was able to not only keep their customers, but increase their sales.
This past year, Chipotle reported earning $2.52 billion in revenue.
Their estimate for the year? $2.49 billion.
This means the company exceeded its target by $30 million.
Chipotle CEO Brian Niccol attributes their success to providing customers with…
Quick service…
And endless customizability.
Considering that inflation has caused every restaurant to increase their prices…
Retaining your customer base is a huge feat.
“WHAT WE HEAR BACK, TIME AND TIME AGAIN, IS WHEN WE DO GREAT CULINARY, TERRIFIC SPEED, TERRIFIC CUSTOMIZATION, AT THE PRICES WE’VE BEEN ABLE TO MAINTAIN, WE’RE REALLY AFFORDABLE AND FOLKS VIEW US AS A TERRIFIC VALUE,” NICCOL SAID.
Since the company’s foot traffic increased by 7.4% this past year, Chipotle is confident that they can continue to increase their earnings…
They’re so confident in fact, that they just announced plans to open 7,000 more restaurants across the country.
THAT’S DOUBLING THEIR CURRENT NUMBER OF RESTAURANTS!
When asked about their plans, Niccol responded, “We really do believe we can double the restaurant count to 7,000,”
“We view it as a conservative number, and we view it as something that’s very feasible in the long term.”
Conclusion
It’s clear that Chipotle knows how to keep their customers happy and their earnings up. When more fast food restaurants are alienating customers…
And choosing between profitability and quality…
It’s good to see a company that knows what it does best…
And use that knowledge to grow their company past their expectations.
Be Great,
GCTV Staff
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