Chipotle’s die-hard base of health-conscious Gen Z and millennials have continued to scoop up burrito bowls and other menu items despite the company raising prices six times since 2021, according to a report.
The Tex-Mex chain reported that its sales nationwide grew 8.4% last quarter – surpassing sales figures for McDonald’s and Starbucks.
That revenue could grow even higher after Chipotle prepares to hike prices at its roughly 400 locations in California in response to the state’s new $20-an-hour minimum wage law, which went into effect on April 1.
The company also plans to expand to an additional 300 locations this year thanks to better-than-expected earnings for four straight quarters, according to The Wall Street Journal.
The Post has sought comment from Chipotle.
Chipotle’s success at a time of record levels of inflation is reflected in the strong performance of its stock.
In the last 12 months, Chipotle’s stock price has risen by 60% – outpacing the S&P 500 index, which has gone up 20% during that same period.
Chipotle executives attribute the strong sales figures to a customer base that is generally more affluent and health-conscious.
“More than half of our customers are millennial or Gen Z,” Chris Brandt, Chipotle’s chief brand officer, told The Journal.
“Our target audience prioritizes overall wellness.”
Young people who tend to go to the gym to build muscle have been posting tips on Reddit for ordering Chipotle, which has a menu that includes bodybuilding-friendly, protein-rich foods such as meat and cheese.
Zack Huhn, a Tampa-based tech executive, told The Journal that he eats at Chipotle several times a week after working out at the gym.
He said he spends anywhere between $15 and $20 per meal.
“It’s cheap and easy and healthier than most restaurant options, fast food or otherwise,” said Huhn.
A recent study by Numerator showed that Chipotle customers were 20% more likely than the average US consumer to earn more than $125,000 per year.
The loyalty of these customers will be tested even further in California, where Chipotle has hiked the price of some of its menu items by as much as 7%.
A recent report by Kalinowski Equity Research found that Chipotle boosted the price of its Chicken Burrito by 8.3% and its Steak Burrito by 7% at 25 locations in California between Feb. 7 and April 2.
According to the report, Chipotle boosted the median price of the Chicken Burrito by 6.8% and 5.7%.
A typical Chicken Burrito from a California Chipotle will now cost $10.25, while the average price of a Steak Burrito will set you back $12.