Chipotle is targeting the top of the K-shaped economy

Core Insights - Chipotle Mexican Grill plans to increase menu prices by 1-2% this year, targeting its core consumer segment of digital natives earning over $100,000 annually [1][7] - The company aims to boost foot traffic and revenue amid weak comparable sales, focusing on its high-income customer base [1][7] Consumer Research - Chipotle conducted in-depth consumer research to refine its strategy, revealing that 60% of its core users have an average household income over $100,000 [2][3] - The core audience skews younger, is typically a digital native, and aligns with Chipotle's brand values of clean food and high protein [3] Financial Performance - Chipotle beat revenue estimates in 2025, despite a 1.7% decrease in comparable restaurant sales [7] - The company projects flat comparable sales for 2026, with plans to open 350 to 370 new restaurants [7] Market Dynamics - The broader restaurant segment is facing challenges due to a K-shaped economy, with lower-income consumers cutting back on dining out while higher-income households continue to spend [8][9] - Chipotle's new protein snack menu and limited-time offers have been successful in attracting customers, indicating that its core consumer is not particularly price-sensitive [9][10] Strategic Initiatives - The company is testing new ideas to retain customers, including more limited-time offers and drink innovations [10] - A "Happier Hour" deal is being considered to engage younger and lower-income customers, although its potential impact remains uncertain [10]