John Ivankoe: Hi, thank you. I was hoping that if you could give a little bit more transparency in terms of especially the month of April, what’s happening on the customer cohort level? I mean, are you seeing more higher-income customers come? Are you seeing some lower income customers maybe coming a little bit less or changing their order patterns? Some people would say maybe attach is a little bit lower than it used to be or the consumer is becoming a little bit more price sensitive, but clearly, that wouldn’t be the case in the traffic numbers that you’ve talked about in April similar to the first quarter. So just wanted to — just get a sense if there’s anything kind of happening beneath the surface that you can talk about or maybe some shifting customer behaviors that actually might be positive for you longer term?
Brian Niccol: Yes. It’s actually two things happened for us. One, the higher income consumer continue to come and hardly came at a little bit faster pace from a frequency standpoint. And then we did see some, I would call it, recovery in the lower income consumer, still not all the way back to where it was, call it, a year ago, but an improvement from where it was over the last six months. So we’ve seen nice improvements across all of our income cohorts, and we continue to see great strength in the higher income.
John Ivankoe: Interesting. And secondly, if I may, in terms of personalization on Chipotle Rewards, where are we in that journey? I mean, how do you feel that you’re doing, are there any near-term opportunities or some near-term functionalities that you’re going to add as the system continues to learn and get better on an individual customer basis.
Brian Niccol: Yes. Thanks for the question. This, I think, is a big opportunity for us because we’re still very much in the early days on this. I think the teams have done a great job of turning the data into action through, call it, like CRM programs. And we’re just starting to tip our toe into the personalization opportunity. And I think you’re going to see really kind of CRM evolve into personalization at meaningful scale. So I think there’s a lot of opportunity to be had in this space. I’m proud of the work that’s been done to-date and where we currently are. But I just think there is tremendous opportunity going forward. assuming we can get this personalization program, right?
John Ivankoe: Thank you.
Operator: The next question comes from Brian Harbour with Morgan Stanley. Please go ahead.
Brian Harbour: Yes, thank you. Good afternoon. In the past, you’ve commented just on kind of delivery sales and what that looks like for the quarter? And then maybe also just kind of what the mix component of your same-store sales for the quarter was? Would you be able to provide some color on that?
Brian Niccol: Delivery was still right around 20%, right?
John Hartung: Like high teens.
Brian Niccol: Yes, high teens. And we saw a nice strength in our digital business, a little bit of a rebound in the delivery business, more so probably in the marketplace. But we’re feeling really good about how we’re positioned in all those access channels. Order ahead, delivery and coming into the restaurant.
Brian Harbour: Okay. And then seeing how the Fajita Quesadilla did quite well. Are there kind of other opportunities like that where you lean into just existing menu items and do something akin to that. You’ve obviously done very well with kind of protein LTOs, but what else could be further afield that kind of continues on that success?
Brian Niccol: Yes. Look, we are really delighted by how well the Fajita Quesadilla performed for the very reason you just mentioned, right? It’s all existing ingredients. It required some work on the digital side of things. But for the most part, this was a really easy one for operators to execute. So the team is doing some work to figure out other opportunities like that within our menu and maybe could apply for both the frontline and the digital line. I do believe there’s still a lot of hidden gems within the Chipotle menu. And I think we have the opportunity to talk about them in a more visible way. So more to come. I know Chris and the team are working through, can we find something that can perform as well as Fajita Quesadilla following those kind of requirements.
Brian Harbour: Thank you.
Operator: The next question comes from Sharon Zackfia with William Blair. Please go ahead.
Sharon Zackfia: Hey, good afternoon. I was hoping to get an update on Chipotlanes. I think around this time last year, you gave us some ROIC metrics on Chipotlanes versus non-Chipotlanes and kind of the sales lift and digital mix component. I’m just curious now that we’re a year later, how those compare the Chipotlanes versus the non- Chipotlanes? And then Jack, did you actually give us kind of what mix and traffic were in the quarter, that would be helpful to have. Thank you.
John Hartung: Well, I’ll do the first one — or the second one first. And I’m surprised it didn’t get asked before. So no, we provide it.
Sharon Zackfia: I just thought I space it out to Jack.
John Hartung: We’re almost not in Sharon. So yes, listen, transactions were in kind of that 4%-ish kind of mid, low-single-digit. It’s a nice turnaround from what we saw in the fourth quarter that we saw a check the net check was 7%, so that gets you to that kind of 10.9%. And of the check, it was about 10% pricing and then a 3% mix. And just as a further clarification, the 10% pricing is about 8.5% is in our in-store and our order ahead business. And then on top of that, there’s a 1.5% for delivery. And then on Chipotlane, Sharon, largely the same. I mean, Chipotlane still perform higher from a sales standpoint, higher from a margin standpoint and then higher from a return standpoint. I think we have mentioned in the past, it’s — the comparisons aren’t as great anymore.
So in other words, a few years ago, we would open up restaurants that could have a Chipotlane, but didn’t as we were kind of executing the strategy. And today, when we have 80%, 85% of our restaurants have a Chipotlane, the 15% or 20% that don’t can’t have one, meaning it’s an urban location, it’s an in-line location. So it’s really different trade areas. So we’re starting to see that some of the sales comparisons are getting a little bit not necessarily relevant. We’re still seeing the Chipotlanes perform at a higher level, but it’s a little bit like comparing an apple to an orange, but still margin return and from a sales standpoint, they’re still great. It still does generate higher digital mix by several hundred basis points, and there still is a shift where delivery takes a step down from something in the high teens into the mid or low teens, and order head steps up quite a bit from something in the call it the low 20% up to the high 20s or even the 30%.
So all the same kind of directional thing that we’ve seen, all the benefits that we’ve seen with Chipotlane are continuing to show up.
Sharon Zackfia: Thank you.
Operator: The next question comes from Jon Tower with Citigroup. Please go ahead.
