Chipotle Mexican Grill soared more than 10% to a record high as analysts praised the burrito chain’s second quarter results. After the close of regular trading Tuesday, CMG said it earned an adjusted $7.46 a share from revenue of $1.9B, beating Wall Street’s forecasts for both the top and bottom lines. Chipotle accredited their success to a focus on digital delivery, contactless pickup, and most importantly, hiring security guards to make sure people don’t order water and then fill the cups with soda.
“It’s been a very interesting 16 months,” Laurie Schalow told Hard Money. “We managed to increase digital sales to the level of a pizza business, which we had no idea was possible for a burrito chain. This massive increase in online orders is huge for us, but it’s nothing compared to GrillGuard, our in-house security force dedicated to preventing people from filling water cups with soda.”
Schalow revealed that in 2019, they conducted an extensive undercover operation to see just how bad soda fraud had gotten. The results were shocking. “We expected the odd person ordering water to top it off with a little Iced Tea, but the data coming back revealed that 95% of all people ordering water ended up stealing soda. The remaining 5% thought that the water was Sprite.
GrillGuard costs Chipotle a whopping 30M$ to operate, but since the company was losing around 1B$ in soda every year, the guards have already paid for themselves. “And we’re not stopping here,” Schalow continued. “We’re just finishing up an investigation into how many teenage boys give cute girls free guac. If the outcome is as bad as we suspect, we’ll be launching a robot division for that stage of the assembly line.”