Analysts expect Chipotle Mexican Grill (CMG) to post revenue of $4.55 billion in 2017. It represents growth of 16.7% from $3.9 billion in 2016. Revenue growth is expected to be driven by positive SSSG (same-store sales growth) and unit growth.
Factors that could drive Chipotle’s revenue in 2017
At the ICR Conference in Orlando, Florida, Chipotle’s management stated that the company is focusing on streamlining its hiring process, training, and aligning its restauranteur program towards customer preferences to improve its SSSG. To enhance customer experience, the company launched a new web ordering site at order.Chipotle.com in 1Q17. It’s working to launch iOS and Android ordering apps. The company is expanding its smarter pickup times to all its restaurants, which is expected to be complete by the end of 1Q17. The company is also working to launch its catering delivery service in select markets.
Chipotle is spending big on advertising. In April 2017, the company is expected to launch the largest advertising campaign in its history. It will be focused on attracting new customers, building brand affinity with existing customers, promoting digital ordering systems, and new menu items. The company plans to add a desert to its menu items. All of these initiatives are expected to drive Chipotle’s SSSG in 2017.
Moving to unit growth, Chipotle’s management expects to open 195–210 new restaurants in 2017.