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.
As 2026 gathers steam, Boatwright is steering into this clientele. Chipotle’s wealthier customers can afford the price hikes, in short.
“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.”
The company has previously noted a pullback in all customers, particularly among those who are earning less.
On the earnings call, Boatwright described a “deep dive on the core Chipotle consumer” to really get to the bottom of what they want. “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.
“We are the way they want to eat,” Boatwright said in the company’s earnings presentation, “and we’re going to lean into that in the most meaningful way.”
Boatwright’s observations lend more evidence to a bifurcated economy, where the rich are getting richer and continuing to spend, while the poor tighten their belts and continue to pull back. Food chain executives from McDonald’s to Cava have noted this two-tiered spending pattern in their consumer base and have scrambled to identify strategies to both capitalize on resilient, wealthier customers, while also luring back lower-income diners with deals, as the whole fast-casual industry responds to widespread economic anxiety. Only 9% of quick service restaurants reported a year-over-year increase in visits, compared to 27% of all restaurant brands, the Financial Times reported, citing data from market research firm Black Box Intelligence.
Chipotle saw a 3.2% decrease in traffic over the last quarter, as well as a 2.5% decrease in same-store sales. However, the company reported a 4.98% increase in net sales, which grew to $2.98 billion.
The bottom half of the K
The burrito chain said its new menu items will include new dips and sides and that it is accelerating the release of limited-time proteins like Chicken al Pastor, citing internal data that customers who purchase these limited-time offers increased spending and frequency of visits over the year compared to customers who didn’t. Chipotle launched a high-protein menu in a bit to appeal to GLP-1 users and Gen Z diners fuelling the protein craze.
To be sure, Boatwright has not given up trying to engage lower-income consumers, including Gen Z.
“We started down the path in fourth quarter of really finding out how to reengage that younger consumer or lower-income consumer and get them reengaged with the brand,” Boatwright said last week.
Part of Chipotle’s high-protein offerings include $3.50 tacos and $3.80 protein cups—essentially a cup of meat—to appeal to both those on a budget and customers willing to spend more on an extra side, Boatwright said. He noted the company will test “Happier Hours,” offering promotions to boost middle-of-the-day spending.
“Think maybe a couple of tacos and a beverage sometime during the middle day part,” Boatwright said on Monday. “We’ll see how it performs.”
However, Chipotle will not lean into McDonald’s-style discounts anytime soon, Boatwright said. While McDonald’s has brought back Snack Wraps and Extra Value Meals, Chipotle will stick to its menu and pricing model—including charging extra for guac.
“Our food is worth, in my mind, every penny we ask someone to pay for it,” Boatwright said. “I don’t want to devalue our core offering. It’s just not something that makes sense for us.”
