Chipotle mexican grill new store analysis 2018

Here's an analysis of Chipotle Mexican Grill's new store performance in 2018:

Key Highlights:

• Chipotle opened 140 new restaurants in 2018, a 14% increase from 2017.
• The company's total restaurant count reached 2,000+ locations by the end of 2018.
• Same-store sales (SSS) growth was 3.4% in 2018, driven by a 4.2% increase in average order value and a 0.8% increase in transactions.
• Digital sales grew 33% in 2018, accounting for 10% of total sales.

New Store Performance:

• Chipotle's new store performance in 2018 was strong, with same-store sales growth of 5.1% in the first year after opening.
• The company's new store growth was driven by a combination of factors, including:
  • Increased marketing efforts to attract new customers.
  • Improved menu offerings, including the introduction of new menu items like chorizo and vegan options.
  • Enhanced customer experience, including mobile ordering and online ordering capabilities.
  • Strategic location selection, with a focus on high-traffic areas and urban markets.

Regional Performance:

• Chipotle's new store performance varied by region in 2018. The company's strongest new store growth was seen in the following regions:
  • West Coast: 6.1% same-store sales growth in the first year after opening.
  • Northeast: 5.5% same-store sales growth in the first year after opening.
  • Midwest: 5.2% same-store sales growth in the first year after opening.
• The company's weakest new store performance was seen in the following regions:
  • South: 4.1% same-store sales growth in the first year after opening.
  • Southwest: 4.0% same-store sales growth in the first year after opening.

Digital Sales:

• Chipotle's digital sales growth was a key driver of the company's overall sales growth in 2018. Digital sales accounted for 10% of total sales in 2018, up from 7% in 2017.
• The company's digital sales growth was driven by the introduction of mobile ordering and online ordering capabilities, as well as increased marketing efforts to promote digital ordering.

Challenges:

• Chipotle faced several challenges in 2018, including:
  • Increased competition in the fast-casual market, particularly from new entrants like Shake Shack and Five Guys.
  • Continued pressure on food costs, driven by rising labor and ingredient costs.
  • Challenges in maintaining consistency and quality across the company's large and growing restaurant base.

Conclusion:

• Chipotle's new store performance in 2018 was strong, driven by a combination of factors including marketing efforts, menu innovation, and strategic location selection.
• The company's digital sales growth was a key driver of overall sales growth, and the company continues to invest in digital capabilities to drive future growth.
• While Chipotle faces challenges in the competitive fast-casual market, the company's strong brand and loyal customer base position it for continued growth and success in the future.