"Chipotle CEO Scott Boatwright is betting on the top half of the K-shaped economy to sustain the burrito giant in unsteady economic times. The burrito giant plans to increase prices 1% to 2%, a slower pace than inflation, over the next year, the company shared in its earnings presentation last week, with Boatwright telling investors on the earnings call that he was surprised by Chipotle's affluent, digital native customer base."
""They're still spending in this tough economy," Boatwright said in an interview with Yahoo Finance on Monday. "So we're gonna lean into those consumers with brand innovation, menu innovation, and really give them more compelling reasons to come in." A week earlier on the earnings call, Boatwright said the "momentum we saw in early January" gave Chipotle "confidence that the strategy is exactly what our customer is looking for.""
""What we've learned is the guest skews younger, a little more higher income, is typically a digital native. And that their grounded purpose aligns with our North Star as a brand around clean food, clean ingredients, high protein, and we are the way they want to eat." Also, 60% of Chipotle customers pull in more than $100,000 a year in average household income."
Chipotle plans gradual price increases of 1% to 2% over the next year, slower than inflation. CEO Scott Boatwright identifies the core customer as younger, higher-income, and typically digital-native, with 60% of customers having household incomes above $100,000. The company observed wealthier customers continuing to spend despite economic pressure and intends to focus on brand and menu innovation to attract them. Boatwright said momentum in early January boosted confidence in the strategy. The company acknowledged a pullback among lower-income customers and is positioning offerings and marketing to lean into affluent consumers who align with Chipotle's emphasis on clean ingredients and high-protein options.
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