Chipotle Mexican Grill (NYSE: CMG) has had an impressive year so far. The company's stock is up nearly 33% this year, versus the S&P 500's 19% gain. One of the leading causes for the outstanding performance is management's quick adoption of digital ordering at the pandemic's onset. The decision offset any loss of sales as a result of in-person dining being temporarily disallowed. The move allowed the company to grow sales in fiscal 2020 without which the results would've been disastrous.
Additionally, management believes that these digital capabilities will have additional pay-offs over the longer term. Specifically, CEO Brian Niccol believes each store can now bring in annual sales of $3 million . While that's great news, investors probably would need to take this view with a pinch of salt under the current economic circumstances. Let's look at the challenges of achieving the target and why it's an important goal.
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Here's Why Chipotle's Most Important Number Could Be $3 Million