Strong demand for Chipotle's carne asada prompted the company to extend its run into the first few months of 2020 just after the company warned its supply was at risk of running out by the end of the year.
On Tuesday, the company, which revealed it faces limited options for supply due to its strict supply chain standards, has sourced additional premium cuts of steak to "satisfy customer cravings."
"Our supply chain team and our chefs, worked with our beef suppliers to identify additional premium cuts that were both delicious and meet all of our food with integrity principles to deliver the Carne Asada experience customers have been enjoying," Jack Hartung, CFO of Chipotle told FOX Business.
|CMG||CHIPOTLE MEXICAN GRILL INC.||1,484.95||+42.95||+2.98%|
The new menu addition was originally introduced as a limited time offer but exceeded the brand's expectations.
"We're incredibly encouraged by the customer response to Carne Asada and are exploring options to add this as a permanent menu item in the future," said Brian Niccol, CEO of Chipotle. "Our mission is to cultivate a better world and we're committed to doing so responsibly with our people, farms, animals and the environment in mind."
In an earnings call at the end of September, Chipotle executives warned that the supply of its carne asada could run out before the end of the year. The company said it sources through farmers instead of factories, which can limit supply options.
"We think we'll probably run out around the end of November, maybe into early December," Hartung said.
Meanwhile, the company reported strong earnings within the three months ending in September.
Its revenue during those three months increased to $1.4 billion, an increase of 14.6 percent compared with the same quarter a year ago. In addition, the company also added an additional 25 restaurants, bringing the total restaurant count to 2,546.