The pandemic pushed the adoption of Chipotle's digital channels and opened the door to digital-only locations. After spending more than a decade travelling the world exploring different cultures and languages, I'm happy to now be contributing to the Motley Fool's mission to make the world smarter, happier, and richer. The company is experimenting with the format and could soon begin seriously incorporating it into its restaurant development pipeline. Nevertheless, almost half of sales were still coming in through digital channels. "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." And these are pushing $1 million average-unit volumes just on their own (Chipotle’s overall AUVs are about $2.2 million). One area that has yet to fully rebound to pre-food safety incident levels is average unit volume. Story continues Chipotle’s average restaurant size is about 2,550 square feet. What’s more, 48.8 percent of sales came from the digital channel (app, online ordering & third-party app) during the quarter. And yet, that's exactly where Chipotle Mexican Grill (NYSE:CMG) just opened its newest location. CEO Brian Niccol notes that each restaurant delivers a “digital average unit volume of well over $1-million.” Analysis Shake Shack calculates its AUV (average unit volume) by dividing the total company-operated sales by the total company-operated units. When you divide sales by locations, you arrive at a metric called "average unit volume" (AUV). For complete Top 500 data, including each chain’s sales, units and YOY change, average unit volume, and company/franchise units, as well as Technomic’s analysis, growth forecast and more: These emerging chains are the growth vehicles to watch—the ones poised to be major industry players in the coming years. Every week Pre COVID, an average of 750 new restaurants were opening throughout the U.S. This brings us back to Chipotle's new Digital Kitchen prototype. 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. Try our corporate solution for free! Counting calories? Chick-fil-A. • Responsible for 15 Orange County locations with more than $1.2 million AUV (average unit volume). ... Volume… Market data powered by FactSet and Web Financial Group. Preferences. Nutrition Calculator. While many places could support a lot of restaurant sales, not all of them make a great spot to place a traditional restaurant design. "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." 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. For 2019, its AUV was $2.2 million. Digital sales in Q3 rose 202 percent, year-over-year, to $776 million, or 49 percent of sales. The location, just a stone's throw from West Point Military Academy, is called The Digital Kitchen. View the latest CMG financial statements, income statements and financial ratios. Togo’s Great Sandwiches – Average Unit Volume of $659,767, over 20% have average sales of $659,767. • Increased AUV by 7.3% in 2014. 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. "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. But Chipotle enjoys digitized second-make lines in all of its units dedicated to off-premises orders. View the latest CMG financial statements, income statements and financial ratios. 2. There were only a handful of resilient operations, and Chipotle was among them. Each location needs to facilitate enough sales to make sense; no management team wants to shut underperforming locations down the line. From a pure business perspective, you can better serve a customer when you better understand a customer. Management says the new store will experiment in "urban areas that wouldn't support a full-size restaurant and allows for flexibility with future locations." Chipotle's average annual sales per restaurant, known as average unit volumes (AUV), are high. Traditionally, filling a development pipeline isn't easy. Stock Advisor launched in February of 2002. Annual stock financials by MarketWatch. 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. This is why many investors approach past stock winners with the presumption they can continue winning into the future. Feel free to reach out to me at jon.quast@foolcontractors.com. Average sales per unit (thousands): $4,517 Unit count: 2,500 Franchised stores: 2,500 Company stores: 0 Total change in units from 2018: 130 U.S. systemwide sales (millions): $11,000 Read more in the QSR 50 here. It will only receive to-go orders digitally through its website, its app, or a third-party delivery app like DoorDash. While unexpected, this lesson from Chipotle is illustrative. What's great about exploring business and the economy is the insight it gives you into how things are in the world. Its customers love Chipotle, and the store’s $2.2 million per-store sales average, known as average unit volume (AUV), puts it in the top tier of the restaurant industry. That's $300,000 more than Chipotle's average stores first made," Cramer noted. In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. Digital sales are advantageous for restaurants for a variety of reasons. There's no dining room or front-line food prep either. 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. Chipotle’s loyalty program now counts 17 million enrolled members. Chipotle Mexican Grill Inc. 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 … Chipotle have grown substantially over the past five years, and expects to open between 190 and 205 additional restaurants in 2015, including a small number of ShopHouse and Pizzeria Locale restaurants. Average unit volume (AUV) in the third quarter was around $2.2 million. 74 new restaurants opened in 2013. While it's too early to say the pandemic changed Chipotle's business model forever, this is an unexpected result of the coronavirus. Fourth quarter 2019 results: 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.. That the chain is able to generate the average unit volume of many standalone restaurants from just a portion of its stores is no small feat and one that is giving Chipotle some extra runway during the pandemic. Cowen analyst Andrew Charles said in late November Chipotle is unlikely to match 2015's peak average unit volume (AUV) of $2.5 million until 2021. @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. Chipotle executives expect digital sales to reach $2.5B this year, putting average unit volume of store-level digital sales at the $1M mark. High volume leverages fixed … "The point would be then even in what is pleasantly defined as a dynamic situation, Chipotle is executing off-premise transactions that translate to a nearly $2 million average unit volume… More on this chain: Chipotle Mexican Grill. Average unit volume (AUV) in the third quarter was around $2.2 million. Special diet? In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. Just wanna know more about the best order on earth? Chipotle Mexican Grill Inc. CMG , ... Analysts think Chipotle can reach the peak $2.5 million average unit volume in 2021, and nearly $3 million by 2024. Sales sales per unit of Chick-fil-A in the U.S. 2016-2019; Margins meanwhile, are feeling the effects of sales deleveraging, dropping to 15.5% in the second quarter, … Chipotle Mexican Grill Inc. And if people are going to order their Chipotle digitally, it opens the door to new possibilities. If … 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. Along the banks of the Hudson River sits the little village of Highland Falls, New York. There's something different about the Highland Falls Chipotle: You can't eat inside. Find out exactly how your meal stacks up, down to the ingredient. 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.. That the chain is able to generate the average unit volume of many standalone restaurants from just a portion of its stores is no small feat and one that is giving Chipotle some extra runway during the pandemic. Chipotle reported average unit volume sales are down to $2 million, compared to $2.5 million a year ago. Published: 2016.07.22 12:00 PM. 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. Wild Wings – $3.4 million average unit volume for 12 company stores. In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. The company was already adequately prepared for to-go options with its digital channels, and once the coronavirus motivated diners to use them, digital sales really took off. Cowen analyst Andrew Charles said in late November Chipotle is unlikely to match 2015's peak average unit volume (AUV) of $2.5 million until 2021. Considering Chipotle already owns over 2,700 locations, it was fair to wonder just how much more room there was for new locations. Is Chipotle Stock Overvalued? With an average restaurant volume of $2.4 million, the revenue per square foot comes to $969. 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. This statistic shows the average restaurant sales of Chipotle Mexican Grill from 2008 to 2019. Average unit volume (AUV) in the third quarter was around $2.2 million. Returns as of 12/28/2020. In the past, Chipotle has gained operating leverage (leading to profits) with high sales volume. Wing * Stop — $974,025 average (2013) –650+ operating units. In other words, digitally ordering ahead rather than placing an order at the counter upon arrival is a consumer behavior that's sticking. YoY = year-over-year. ... Chipotle Mexican Grill is possibly the largest burrito-making restaurant chain in the world. But Chipotle enjoys digitized second-make lines in all of its units dedicated to off-premises orders. This village isn't the kind of place a high-volume restaurant chain would typically set up shop. What’s more, 48.8 percent of sales came from the digital channel (app, online ordering & third-party app) during the quarter. ... Volume… Cumulative Growth of a $10,000 Investment in Stock Advisor, Has the Pandemic Changed Chipotle's Business Model Forever? Bulls are quick to point out that "Each store makes $1.8 million in average unit volume. But with digital-only locations, the company is expanding its possibilities, which is what successful companies tend to do. Appreciate my writing, have an idea for me, or is there an issue with something I wrote? 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. Generally speaking, once the COVID-19 pandemic started, dining rooms closed and restaurant sales plummeted worldwide. 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. "The growth acceleration this quarter gives us confidence that our strategy is working. Of course, all stocks eventually reach a ceiling, leaving many wondering if it’s too late to invest in Chipotle. The smaller piece of real estate would theoretically be more affordable. 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. Average unit volume (AUV) in the third quarter was around $2.2 million. Chipotle was able to keep business going when many customers were sheltering at home, and the company was sure glad it was equipped to do this beforehand. Digital sales in Q3 rose 202 percent, year-over-year, to $776 million, or 49 percent of sales. More on this chain: Chipotle Mexican Grill. This is a good example of how a company can leverage technology to boost profits even when it's not a technology stock. Chipotle -- Nutrition Calculator. Annual stock financials by MarketWatch. Chipotle’s vaunted economic model, arguably once the best in the industry, is in a free fall. For complete Top 500 data, including each chain’s sales, units and YOY change, average unit volume, and company/franchise units, as well as Technomic’s analysis, growth forecast and more: Get the Full Report 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. This statistic shows the leading quick-service restaurant (QSR) chains in the United States in 2019, by sales per unit. If the company chooses to open a lot of small-format digital stores, one would expect AUV to fall some. Chipotle executives expect digital sales to reach $2.5B this year, putting average unit volume of store-level digital sales at the $1M mark. Average unit volume (AUV) is a crucial metric for restaurants. 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