Chipotle CEO fights back after online uproar over its wealthy customers

Core Insights - Chipotle's CEO Scott Boatwright emphasized that 60% of the brand's consumers have an average household income exceeding $100,000, indicating that the company is targeting this demographic despite economic challenges [1] - The company is experiencing a significant decline in stock value, with shares down approximately 31% over the past year, and a 2026 outlook predicting flat comparable sales growth [2] - Chipotle is facing restaurant inflation at around 4.1%, leading to a defensive strategy to cater to cash-strapped consumers while maintaining a high-protein menu entry point at $3.50 [3] Pricing Strategy - Management claims to be underpricing inflation by raising prices only 1% to 2% this year, despite beef prices reaching an all-time high of $6.69 per pound [4] - The company is absorbing margin hits to prevent further declines in customer traffic, highlighting a tension between premium pricing and its traditional brand identity [4] Marketing Initiatives - To address the disconnect between premium pricing and its core identity, Chipotle is testing a "Happier Hour" program aimed at offering lower-priced bundles during mid-day slumps [6] - The proposed deals may include options like a couple of tacos and a beverage for $10 or less, pending performance evaluation [7]