Chipotle earnings estimate estimates, increase sales forecast in the same store

the shares of the company originally increased 4%, but have since lost de gains.

" The ongoing improvement In each of our key operating statistics over the last few quarters, we are confident that our mission to win today and cultivate the future is resonant, says CEO Brian Niccol in a statement.

This is what the company reported compared to what Wall Street expected, based on a survey by Refinitiv analysts:

• Earnings per share: $ 3.40, adjusted, versus $ 3.01[ads1] expected
• Revenue: $ 1.31 billion vs. $ 1.27 billion expected
• Same store sales growth: 9.9% versus 7.29%

Chipotle reported a net income of $ 88.1 million in the first quarter, or $ 3.13 per share, up from $ 59.4 million, or $ 2.13 per share a year earlier.

In addition to expenses related to the write-down of restructuring, restructuring of companies and other costs, the Mexican food chain deserved $ 3.40 per share, and topped $ 3.01 per share, as expected by analysts surveyed by Refinitiv. Price increases at the end of 2018 helped to reduce food, beverages and packaging, but were partly offset by more demand for beef.

Net sales increased by 13.9% to $ 1.31 billion and hit expectations of $ 1.27 billion.

In particular, digital sales increased 100.7% in the quarter, accounting for 15.7% of total sales. Managers would not disclose the percentage of digital sales as delivery orders.

In March, Chipotle launched its point-based loyalty program nationwide. Less than a week later, the company exceeded one millionth member, making a year worth Chipotle. The program has already helped mobile app downloads, according to a Barclays note. The company plans to use consumption data to better target members of the loyalty program.

During the company's earnings conference, Niccol said that the rewards program has grown to 3 million members.

The loyalty program is only part of Chipotle's strategy for building digital engagement. The company has a partnership with third-party delivery service DoorDash. By the end of 2018 and in the first week of 2019, Chipotle offered free delivery to promote the partnership. Niccol told investors that almost half of the free delivery brochure books were new or abducted customers. Even after the campaign ended, Chipotle saw increased customer retention.

It has also invested in changes in the restaurants to make delivery and digital retrieval easier for customers, such as picking up shelves and windows, called Chipotlanes.

Same store sales increased by 9.9%, driven by a 5.8% increase in restaurant transactions. This is the fifth consecutive quarter that Chipotle has experienced growth in the same store. The reported point of sale for the same store contains a 0.30% negative impact pending customers cashing in loyalty program rewards.

The company increased its same store outlook for 2019. It now forecasts mid-to-high one-digit sales growth in stores opening at least a year. It previously said it was expected mid-digit growth.

The company opened 15 stores and closed 2 places in the quarter, breaking the total restaurant to 2,504. Chipotle repeated its forecast for opening between 140 and 155 stores in 2019.

Investors have been optimistic about the chain under Niccols leadership. When head of Taco Bell, he was known for developing innovative products. At the end of March, the company's share price hit $ 700 per share for the first time since 2015, when a multi-state E. coli outbreak associated with Chipotle sent stocks down. The inventory is up over 64% so far in 2019. "They are on their way back, but I think one of the key [reasons] has been marketing and pushing more dollars toward national marketing towards local marketing," said BTIG analyst Peter Saleh at CNBC's "Closing Bell."

In 2018, Chipotle launched a national advertising campaign "For Real", which focuses on the ingredients. Two months ago, the "Background" launched documentary style ads showing how the chain prepares its ingredients before landing in the customer's burrito.