Chipotle’s loyal base of health-conscious Gen Z and millennials continues to scoop up burrito bowls and other menu items even though the company has raised prices six times since 2021, according to the report.
The Tex-Mex chain reported national sales rose 8.4% last quarter, outpacing McDonald’s and Starbucks.
That revenue could rise even further as Chipotle prepares to raise prices at about 400 California stores in response to the state’s new $20-an-hour minimum wage law, which took effect April 1. There is.
The company also plans to expand to 300 more stores this year, thanks to four consecutive quarters of better-than-expected revenue. According to the Wall Street Journal.
The Post has reached out to Chipotle for comment.
Chipotle’s success amid record inflation levels is reflected in the company’s stock’s strong performance.
Chipotle stock is up 60% over the past 12 months, outpacing the S&P 500 index, which is up 20% over the same period.
Chipotle executives attribute strong sales to a generally affluent and health-conscious customer base.
“More than half of our customers are Millennials or Gen Z,” Chris Brandt, Chipotle’s chief brand officer, told the Journal.
“Our target audience is prioritizing overall health.”
Young people who tend to go to the gym to build muscle posted tips on ordering Chipotle, which offers bodybuilding-friendly menus that include protein-rich foods like meat and cheese, on Reddit. I am.
Zach Huhn, a Tampa-based technology executive, told the Journal that he eats at Chipotle several times a week after working out at the gym.
He said he spends $15 to $20 per meal.
“It’s cheaper, easier and healthier than most restaurants, including fast food,” Huhn said.
A recent study by Numerator showed that Chipotle customers are 20% more likely to earn more than $125,000 annually than the average U.S. consumer.
That customer loyalty will be further tested in California, where Chipotle has increased prices on some menu items by up to 7%.
Chipotle raised the price of chicken burritos by 8.3% and steak burritos by 7% between February 7 and April 2 at 25 California stores, according to a recent report from Kalinowski Equity Research.
Chipotle increased the median price of its chicken burritos by 6.8% and 5.7%, according to the report.
A typical chicken burrito at Chipotle in California currently costs $10.25, while the average price for a steak burrito is $12.
