During an interview, Interim CEO of Chipotle Mexican Grill CMG, Scott Boatwright, shared insights into the company’s third-quarter performance and future strategies.
What Happened: On Tuesday, before Chipotle’s third-quarter earnings call, Boatwright discussed a range of topics during his appearance on CNBC Overtime.
During the conversation, he underscored the company’s initiatives to enhance service times, which have significantly boosted revenue growth. Boatwright also revealed that Chipotle has been investing in automation and creating new roles.
He talked about the restaurant’s recruitment drives, especially during the “Burrito Season” and back-to-school period and disclosed that a new AI tool has cut the hiring process time by 75%, resulting in a surge in application flow.
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“We just launched an AI tool that helps us onboard people in our restaurants that shortens the time from applicant to hire by 75% … we’re better staffed today than we have been in many, many years,” he stated.
Boatwright also expressed confidence in his predecessor, Brian Niccol, who has moved to Starbucks, and assured investors that the company would maintain its focus on the consumer and deliver high-quality culinary experiences.
He also touched on the company’s technological advancements, including the integration of AI models with their Consumer Data Platform and loyalty program, and mentioned the development of a new produce slicer.
We’re developing bespoke and unique technologies that are more long-range but we know will add a ton of value in the future,” the interim CEO said.
Why It Matters: Chipotle’s third-quarter results showed a 13% year-over-year increase in revenue, reaching $2.79 billion, although it fell short of the Street consensus estimate of $2.82 billion.
The third-quarter earnings report marked the first since Niccol announced his departure.
In the second quarter, Chipotle exceeded expectations by delivering strong revenue and earnings growth. At the time, the company reported $2.97 billion in revenue and adjusted earnings of 34 cents per share.
Meanwhile, regarding the streamlined hiring process, earlier this month, Chipotle announced a partnership with Paradox to streamline the hiring process for its restaurant teams.
The AI-powered platform was expected to reduce hiring times for in-restaurant positions by up to 75%, allowing General Managers to focus more on daily operations and guest hospitality.
CMG Price Action: At the time of writing, Chipotle Mexican Grill stocks were down by 5.27% in the after-hours session. The company ended the Tuesday session at $60.49, down 0.18%, according to Benzinga Pro.
Image Courtesy: Chipotle
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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