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Chipotle Falls as Delivery Boom Erodes Profitability

  • New costs are the dark side of online ordering surge
  • Fewer in-store diners means lower beverage sales as well
     
Photographer: Caitlin O'Hara/Bloomberg
Updated on

Chipotle Mexican Grill Inc. shares dropped after a surge in delivery orders cut into third-quarter profits, underscoring the challenges for restaurants trying to adapt to consumer behavior in the pandemic.

The delivery channel has let Chipotle fight off the impact of Covid-19 -- same-store sales grew 8.3% from a year earlier, surpassing the estimate from Consensus Metrix. Digital sales, or those made online or via the company’s app, tripled in the period and accounted for almost half of all revenue, the company said in a statement.