Chipotle to debut premium margaritaChipotle to debut premium margarita

Chipotle's new margarita will feature Patrón tequila.

After reporting a 22-percent increase in first-quarter net income, Chipotle Mexican Grill said Thursday it will debut a new Patrón margarita made with premium tequila and fresh juices at most of its restaurants later this month.

While the Denver-based chain has long offered beer and margaritas made with a mix in some locations nationally, the new version will feature made-to-order cocktails made with Patrón Silver tequila, blended with Triple Sec, fresh lime and lemon juices and organic agave nectar, and served on the rocks, the company said.

Priced between $6.50 and $8, depending on location, the cocktail will be available at about 900 of the chain’s 1,458 restaurants starting April 29, in time for Cinco de Mayo.

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The chain’s existing margarita, made with Sauza tequila, will remain on the menu as a house option at a lower price, which varies by market, the company said. The Sauza version will also be made with the same fresh-juice-based recipe.

“Most people are not aware, but we have served margaritas at Chipotle from the beginning,” said Mark Crumpacker, Chipotle’s chief marketing officer, in a statement. “Previously, however, they were made using a margarita mix and we didn’t feel they were as delicious as they could be. Our new margarita recipe eliminates the mix in favor of a few simple ingredients.”

Though margaritas are not new at fast-casual Mexican chains, Chipotle is among the first to partner with a premium tequila brand.

At the 636-unit Qdoba Mexican Grill, based in Denver but owned by San Diego-based Jack in the Box Inc., company locations only offer beer, though some franchisees may offer margaritas, said spokeswoman Megan Wallace.

Similarly, at Austin, Texas-based Freebirds World Burritos, a 95-unit fast-casual chain owned by Emeryville, Calif.-based Tavistock Restaurants, franchisees in Kansas and Missouri offer tequila-based margaritas, but the chain overall offers beer as the alcohol option, said spokeswoman Sara Barker.

Chipotle’s net income for the March 31-ended quarter was $76.6 million, or $2.45 per share, compared with $62.7 million, or $1.97 per share, a year ago, despite higher commodity costs — particularly on ingredients for salsa, dairy and chicken — though avocado costs declined.

Revenue for the quarter was $726.8 million, an increase of 13.4 percent from the prior year.

Same-store sales rose 1 percent, driven primarily by traffic, but the company said it was offset by a loss of trading days in the quarter compared to early 2012.

The company reiterated its outlook for the year, saying same-store sales would likely be flat to a low-single-digit increase. Between 165 to 180 new restaurants are expected to open in 2013.

Contact Lisa Jennings at [email protected].
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