NEWPORT BEACH, CALIF. — Earlier this year, Chipotle Mexican Grill Inc. unveiled a new menu offering inspired by two TikTok content creators. The digital-exclusive fajita quesadilla adds peppers and onions, plus a side of the chipotle-honey vinaigrette customarily served with its salads, to the standard quesadilla, which typically features cheese and pork, beef, chicken or tofu.
The genius of the now-permanent addition to Chipotle’s menu, said Brian R. Niccol, chairman and chief executive officer, is the product is made with existing ingredients in the restaurants’ kitchens. Only a few tweaks to the digital ordering technology were required.
“For the most part, this was a really easy one for operators to execute,” Niccol said during an April 25 earnings call. “So, the team is doing some work to figure out other opportunities like that within our menu and maybe could apply for both the frontline and the digital line. I do believe there’s still a lot of hidden gems within the Chipotle menu. And I think we have the opportunity to talk about them in a more visible way.”
The launch of the fajita quesadilla resulted in a near doubling of total quesadilla sales and “two of our top digital sales days of all time,” he added.
As management continues to focus on the fundamentals of its operations, opportunities to introduce innovation with little complexity are a priority. A limited-time offering of chicken al pastor, as another example, combines the brand’s grilled chicken with a spicy marinade. That item has been “broadly appealing” to both new and existing customers, Niccol said.
Net income for the first quarter ended March 31 was $291.6 million, equal to $10.56 per share on the common stock, up 84% from $158.3 million, or $5.64, in the prior-year period. Restaurant-level margin benefited from higher sales, labor efficiencies and lower avocado prices, said John R. Hartung, chief financial officer.
Total revenue increased 17% to $2.4 billion from $2 billion.
Comparable restaurant sales increased 11%, as in-store sales grew 23% over the last year, and digital sales represented 39% of sales. The company opened 41 new restaurants during the quarter.
Executives expect second-quarter and full-year comparable restaurant sales growth in the mid- to high-single-digit range and are planning 255 to 285 new restaurant openings in 2023.
Shares of Chipotle Mexican Grill on the New York Stock Exchange were trading as high as $2,047.31 on April 26, up 15% from the day before.