Customers not deterred by increasing Chipotle prices

Chipotle Mexican Grill reported better-than-expected earnings for four straight quarters even though it has increased menu prices six times since 2021.

 Most customers are feeling the pinch of inflation, which has translated to reduced sales across much of the US restaurant industry. 

The CFO of McDonald’s, Ian Borden, recently pointed out that lower-income Americans are increasingly choosing homemade meals over the golden arches.

 But traffic at Chipotle last year was 1% higher than in 2022, per Circana, a market research firm.

Prices at the chain are expected to increase further in California after the state increased hourly wages.

Nevertheless, Chipotle’s customizable menu and loyal customers, who tend to have higher incomes and are more health conscious, sustain its popularity.

The chain plans to expand its presence with around 300 new locations and aims to navigate these price adjustments while retaining customer satisfaction.

Millennials and Gen Z constitute over half of Chipotle’s clientele.

The company is scheduled to report first-quarter 2024 results on April 24.