Customers Seem to Be Ditching Chipotle and Its High Prices

Chipotle has always had a loyal following that loves its fresh ingredients and Mexican-inspired food. Thanks to these fans, the chain felt safe

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raising prices frequently and noticeably—many in the past year. However, its latest profitability report suggests that customers are finally tired of pricey

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In a Feb. 6 earnings call, Chipotle reported fourth-quarter earnings, revenue, and same-store sales below forecasts. Customer spending was

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lower than usual, making the quarter "tough" for the chain. "During the holidays, we didn't experience the usual velocity and pop...

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Weather, similarities to the successful smoked brisket released in 2021, and a disappointing garlic guajillo steak launch in September 2022 were blamed by executives.

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CNBC reported that Chipotle CEO Brian Niccol said its price increases have not hurt sales, even though transactions have dropped for two quarters.

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Despite its tiny menu, Chipotle has been able to capitalize on rising U.S. inflation, which fell for the sixth straight month in December 2022 but

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still rose 6.5% year-over-year. In August 2022, the chain hiked prices by 4% because to rising avocado, dairy, and meat prices.

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Chipotle's price hikes helped it cover higher ingredient costs last year. It said food costs "benefited from menu price increases and, to a lesser extent

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