And if people are going to order their Chipotle digitally, it opens the door to new possibilities. @themotleyfool #stocks $CMG, 3 New Menu Items That Could Be Coming to Chipotle in 2021, If You Invested $10,000 After Chipotle's IPO, This Is How Much Money You'd Have Now, Chipotle Celebrates the "Stickiness" of Its Digital Sales Channel, Copyright, Trademark and Patent Information. When you divide sales by locations, you arrive at a metric called "average unit volume" (AUV). For the full year, Chipotle's average unit volumes exceeded $2 million with digital sales surpassing half a billion dollars," said Brian Niccol, Chief Executive Officer, Chipotle. Market data powered by FactSet and Web Financial Group. While I no longer get to exercise my analytical muscles with linguistics, it's rewarding to analyze business and share my opinions through this platform. This village isn't the kind of place a high-volume restaurant chain would typically set up shop. Counting calories? In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. 74 new restaurants opened in 2013. 2. Generally speaking, once the COVID-19 pandemic started, dining rooms closed and restaurant sales plummeted worldwide. The location, just a stone's throw from West Point Military Academy, is called The Digital Kitchen. Nevertheless, almost half of sales were still coming in through digital channels. • Responsible for 15 Orange County locations with more than $1.2 million AUV (average unit volume). But then something interesting happened: By the end of the third quarter, 85% of Chipotle restaurants were returning to pre-pandemic normal by offering at least some seating. Winsight is a leading B2B information services company focused on the food and beverage industry, providing insight and market intelligence to business leaders in every channel consumers buy food and beverage – convenience stores, grocery retailing, restaurants and noncommercial foodservice – through media, events, data products, advisory services, and trade shows. Try our corporate solution for free! One area that has yet to fully rebound to pre-food safety incident levels is average unit volume. Chipotle Mexican Grill Inc. While unexpected, this lesson from Chipotle is illustrative. Chipotle’s second quarter average unit volume is now trending $2 million on an annual basis, substantially lower than the $2.5 million the company reported a year ago. Published: 2016.07.22 12:00 PM. Story continues Beyond the near-term, Chipotle is expected to move above the $2.5-million average unit volume milestone in 2022, with a restaurant-level margin … Returns as of 12/28/2020. This is why many investors approach past stock winners with the presumption they can continue winning into the future. Following discovery, new openings and other sources of fresh restaurant data are placed inside the Restaurant Unit Locator. And these are pushing $1 million average-unit volumes just on their own (Chipotle’s overall AUVs are about $2.2 million). Fourth quarter 2019 results: Bulls are quick to point out that "Each store makes $1.8 million in average unit volume. Average unit volume (AUV) in the third quarter was around $2.2 million. Therefore, Chipotle might be able to operate more locations long term than it previously thought. The smaller piece of real estate would theoretically be more affordable. This is a good example of how a company can leverage technology to boost profits even when it's not a technology stock. That said, I would expect Chipotle's profit margin to remain strong despite the lower sales volume because a digital-only location could have a better cost structure. In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. Traditionally, filling a development pipeline isn't easy. • Increased AUV by 7.3% in 2014. In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. Preferences. There were only a handful of resilient operations, and Chipotle was among them. There's no dining room or front-line food prep either. "For the full year, Chipotle's average unit volumes exceeded $2.2 million and digital sales surpassed a billion dollars, showing that our key strategies are working, and the Chipotle brand is thriving as we build a sustainable model that helps cultivate a better world." While it's too early to say the pandemic changed Chipotle's business model forever, this is an unexpected result of the coronavirus. "For the full year, Chipotle's average unit volumes exceeded $2.2 million and digital sales surpassed a billion dollars, showing that our key strategies are working, and the Chipotle brand is thriving as we build a sustainable model that helps cultivate a better world." What's great about exploring business and the economy is the insight it gives you into how things are in the world. Feel free to reach out to me at jon.quast@foolcontractors.com. Furthermore, almost all labor would be used directly in food preparation, with the app handling the transaction. This statistic shows the average restaurant sales of Chipotle Mexican Grill from 2008 to 2019. For example, if someone uses Chipotle's app, the company can collect certain data points on a customer (menu preferences, order frequency, and the like) that it couldn't otherwise. Sales sales per unit of Chick-fil-A in the U.S. 2016-2019; Special diet? Tower said he is confident that Chipotle can restore its average unit volume to precrisis levels—or even surpass them—over the next several years. "The growth acceleration this quarter gives us confidence that our strategy is working. In other words, digitally ordering ahead rather than placing an order at the counter upon arrival is a consumer behavior that's sticking. The pandemic pushed the adoption of Chipotle's digital channels and opened the door to digital-only locations. Food trends and recipes to keep menus fresh, New restaurants and soon-to-open concepts worth monitoring, RB’s exclusive ranking of the highest-grossing independent restaurants, Peter Romeo highlights the moments restaurateurs miss at their own peril, Ideas from the field you may want to borrow. With an average restaurant volume of $2.4 million, the revenue per square foot comes to $969. And these are pushing $1 million average-unit volumes just on their own (Chipotle’s overall AUVs are about $2.2 million). Average unit volume (AUV) in the third quarter was around $2.2 million. Every week Pre COVID, an average of 750 new restaurants were opening throughout the U.S. The much-anticipated annual QSR 50 ranking is here, and at the top of this year’s list is hamburger heavy weight McDonald’s with more than $32 billion in systemwide sales in the U.S. during fiscal 2010. Average unit volume (AUV) is a crucial metric for restaurants. For the full year, Chipotle's average unit volumes exceeded $2 million with digital sales surpassing half a billion dollars," said Brian Niccol, Chief Executive Officer, Chipotle. Data source: Chipotle Mexican Grill. An average location only does about $1 million in digital sales right now, and it seems to me that a to-go-only location would struggle to approach the volume of a regular store. But if consumers are going to order digitally and take it to go, then perhaps your standard-format Chipotle could be replaced by a small-format digital operation. More on this chain: Chipotle Mexican Grill. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. CEO Brian Niccol notes that each restaurant delivers a “digital average unit volume of well over $1-million.” Analysis "Even more impressive for Chipotle is that average unit volume growth accounted for more than 600 (basis points) of the 25.2% compound annual growth rate," Farmer noted. Chipotle reported average unit volume sales are down to $2 million, compared to $2.5 million a year ago. Chipotle Mexican Grill’s second make lines for digital orders are now averaging $1 million in sales per unit annually—sometimes more, the fast casual’s CEO told analysts Wednesday.. 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