• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar

3

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar

3

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Chipotle

Chipotle’s New Menu Item Could Create a Worse Queso Scenario

By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
October 20, 2017, 2:06 PM ET
Add Fortune on Google for similar content.

Chipotle Mexican Grill has a queso problem that could have a spillover-effect on sales, analysts at RBC Capital said Friday in a research note.

RBC Capital lowered its price target for Chipotle 17.% to $330 due to higher labor costs, rising avocado prices, and slower same-store sales in the second half of 2017, in a research note entitled “Worst Queso Scenario.”

Chipotle stock was trading at $323.46 at 1 pm ET.

Avocado prices have been noted as a hurdle to Chipotle’s recovery before. Now the spicy cheese dip is threatening the quick-serve chain’s recovery. Chipotle has been working to repair its reputation after E. coli, salmonella, and norovirus outbreaks in 2015 drove consumers away.

Chipotle introduced queso to its menu in September after testing it in hundreds of stores in Colorado and Southern California. Chipotle’s version is a spicy cheese sauce meant to be used as a dip for chips or added to a burrito.

The restaurant chain’s new menu item prompted RBC Capital analysts to reduce same-store sales estimates for the third quarter from 2.5% to -1% after evaluating comments on social media platforms like Twitter. RBC expects positive trends in the fourth quarter, however.

“Our reduced estimates for Chipotle’s 3Q and 4Q SSS (same-store sales) growth are supported by our analysis of search engine trends and social media comments, which imply that user sentiment around queso, which launched nationally on September 12, weighed on Chipotle’s overall brand sentiment,” analyst David Palmer wrote in the note.

Queso might inconsequential to the company’s sales. But consider that, on average, adding the dip will set customers back $1.25, while a large side of the dip will cost around $5.25. If the queso was as popular as say, McDonald’s Szechuan sauce, it could have had a significant effect on Chipotle’s bottom line. Chipotle has 2,300 restaurants.

RBC Capital analysts haven’t abandoned the queso—and its ability to drive sales—altogether. Palmer noted that third-quarter results will hopefully reveal whether queso has the potential to drive incremental trial and frequency and if adjustments to the product or its execution are necessary.

RBC also expects Chipotle to raise prices by the end of the year in select markets. The company already raised prices 5% earlier this year in 440 of its 2,300 stores.

“We expect to see a similar level of pricing phased in beginning in late 2017 and through 2018, which could potentially result in an effective price increase of 2% to 3% next year. ”

Read more about how the company developed its queso recipe from a story Fortune ran in July, when the dip first made its way into Chipotle’s test kitchen.

About the Author
By Kirsten Korosec
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in

AMD’s Lisa Su defends open-source AI following Hugging Face security breach caused by OpenAI agent
AIAdvanced Micro Devices
AMD’s Lisa Su defends open-source AI following Hugging Face security breach caused by OpenAI agent
By Sebastian HerreraJuly 23, 2026
31 minutes ago
Alphabet Inc. and Google CEO Sundar Pichai speaks during the inauguration of a Google Artificial Intelligence (AI) hub in Paris on February 15, 2024. (
Big TechWall Street
AI is forcing Big Tech to do something it’s never done: Spend more than it earns, and Wall Street hates it
By Eva RoytburgJuly 23, 2026
1 hour ago
Innovaccer's founders sit in chairs on a stage
AIData
Innovaccer’s CEO walked away from Disney and NASA to fix healthcare’s data mess. Now the startup has crossed $200 million in ARR
By Lily Mae LazarusJuly 23, 2026
2 hours ago
cc
AISocial Media
Coke on its rebrand accidentally nailing Gen Z’s ‘fridge cigarette’ joke: ‘building on on the things people already know and love’
By Tatiana SatauaJuly 23, 2026
2 hours ago
Can Bangkok future-proof itself against the heat?
CommentaryThailand
Can Bangkok future-proof itself against the heat?
By Curtis S. Chin and Ella TanJuly 23, 2026
3 hours ago
Photo of Mark Zuckerberg
AIMark Zuckerberg
‘Call us whatever the hell you want’: Mark Zuckerberg just launched an AI optimism blitz using nostalgia to sell Meta’s AI future amid backlash
By Mia OsmonbekovJuly 23, 2026
3 hours ago

Most Popular

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
1 day ago
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
Economy
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
By Sasha RogelbergJuly 22, 2026
1 day ago
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
3 days ago
'The man who dies rich dies disgraced': The last time America had such wealth inequality, Andrew Carnegie knew he had to give it all away
Success
'The man who dies rich dies disgraced': The last time America had such wealth inequality, Andrew Carnegie knew he had to give it all away
By Nick LichtenbergJuly 22, 2026
1 day ago
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
Personal Finance
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
By Joshua HongJuly 23, 2026
17 hours ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.