Chipotle (CMG) isn't yet ready to send BBQ industry experts into a tizzy by launching its barbecue sauce lathered brisket at all of its 2,800 restaurants.
"We tested brisket, that went really well. Customers love it. Operationally it went really well also," Chipotle CFO Jack Hartung told Yahoo Finance Live. "So we don't have any specific plans for when brisket might be rolled out or offered on a national basis, but that's something in the pipeline."
Chipotle began testing brisket in August 2020, as Yahoo Finance previously reported.
More recently, Chipotle launched quesadillas for digital-only offers on March 9. Hartung said Chipotle will be testing several new products this summer, but declined to share specifics.
Even without brisket on the menu (and with new quesadillas on it), Chipotle had an otherwise delicious quarter as diners continued to order food online during the pandemic. Price increases for digital orders also boosted results.
Chipotle reported Wednesday after the close of trading that first quarter digital sales surged 133.9% and represented approximately 50.1% of revenue. Same-store sales rose 17.2%.
Hartung told analysts on a conference call that second quarter to-date sales have started strongly on the back of digital ordering and the return of indoor dining. Second quarter same-store sales are seen rising by high 20s percent to 30%.
"It's difficult to cast Chipotle's first quarter results/outlook in a negative light, in our view — the majority of Chipotle's key long-term value drivers continued trending in a positive direction (e.g., unit pipeline, average unit volume and margin algorithm, Chipotlane economics, new product pipeline and digital mix/initiatives)," wrote Wells Fargo analyst Jon Tower in a note to clients.
Tower reiterated an Overweight (Buy equivalent) on Chipotle's stock with a $1,818 price target.
Shares of Chipotle fell slightly to $1,489.65 in Thursday afternoon trading.
What’s hot from Sozzi:
Watch Yahoo Finance’s live programming on Verizon FIOS channel 604, Apple TV, Amazon Fire TV, Roku, Samsung TV, Pluto TV, and YouTube. Online catch Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, and LinkedIn.