Health-conscious Gen Z, millennials keep buying Chipotle despite price hikes: report

Core Insights - Chipotle has experienced a sales growth of 8.4% in the last quarter, outperforming competitors like McDonald's and Starbucks [1] - The company plans to increase prices at its California locations due to the new $20-an-hour minimum wage law, which could further boost revenue [1] - Chipotle's stock price has risen by 60% over the past 12 months, significantly outpacing the S&P 500 index's 20% increase during the same period [2] Customer Demographics - More than half of Chipotle's customers belong to the millennial or Gen Z demographic, which is generally more affluent and health-conscious [2][3] - Chipotle is perceived as a healthier dining option, particularly among young consumers who prioritize wellness and fitness [3] Pricing Strategy - Chipotle has raised menu prices six times since 2021, with recent increases in California seeing prices for some items rise by as much as 7% [1][6] - The median price for a Chicken Burrito in California has increased by 6.8%, with the typical price now at $10.25, while the average price for a Steak Burrito is $12 [6] Expansion Plans - The company plans to open an additional 300 locations this year, driven by better-than-expected earnings over the last four quarters [1]