Chipotle Mexican Grill is not raising prices because of wealthier consumers, despite what you may have heard online.
The fast-casual burrito chain on Tuesday worked to correct viral posts and news reports suggesting that it plans to hike prices this year because its many high-income customers can afford it.
The misleading narrative apparently began with a viral post by X account Wall Street Apes and was picked up by outlets including Fox News and the New York Post. The posts seemed to conflate or misconstrue comments made on Chipotle’s quarterly earnings call last week.
During the call on Feb. 3, an analyst asked about the effectiveness of some of Chipotle’s recent menu and marketing efforts, such as low-priced cups of meat.
Chipotle CEO Scott Boatwright responded that the strategy is working, and noted that 60% of the chain’s regular customers earn more than $100,000 a year. He said that the brand wants to “lean into that group” as it looks to bounce back from a streak of traffic declines.
Also on the call, CFO Adam Rymer said the chain planned to raise prices a modest 1% to 2% in 2026, or below its expected inflation of 3% to 4%. That price increase is also lower than the industry average of 4%, Boatwright said.
On Friday, Wall Street Apes posted on X: “CEO of Chipotle caught on a recording indicating they’re going to keep raising prices because they can.” It was reposted more than 12,000 times and received more than 6,000 comments, many of which were bashing Chipotle.
Chipotle’s social media accounts responded to the Wall Street Apes post along with the many other questionable posts it spawned. The brand noted that “pricing was not mentioned [by Boatwright] and no additional pricing is being taken for this consumer cohort.”
In a statement, Chief Corporate Affairs Officer Laurie Schalow reiterated that Chipotle wants to give higher-earning consumers "additional reasons to visit" through marketing, menu innovation and an improved digital experience.
"Pricing was never mentioned regarding this consumer cohort and Chipotle has taken a slow and measured approach by only increasing prices in this quarter around .7% compared to the industry average of 4%,” she said.
The brewing backlash comes at a delicate time for Chipotle, which is coming off its first year of negative same-store sales since its food safety crisis in 2016.
Like other fast-casual chains, it has struggled to attract younger and lower-income consumers. It has also faced criticism over its portion sizes and prices.
Chipotle has responded with new menu items that offer ample protein for a reasonable price, such as protein-packed bowls and tacos and those small cups of grilled chicken or steak. New ads, meanwhile, highlight its freshly cooked food and ingredients.
This year, it plans to invest in its operations, a revamped loyalty program and third-party delivery.
That said, its strategy of focusing more on wealthier consumers may not go over well with customers who already felt its food was too expensive, even though it is working to keep prices in check.
Newport Beach, California-based Chipotle is the second restaurant company in a week that had to work to contain online backlash sparked by questionable news reports.
Last week, Cracker Barrel issued a clarification about its employee travel policy after the Wall Street Journal reported that the company wants staffers to eat at Cracker Barrel during business trips. Many other outlets repeated, and twisted, the story. Cracker Barrel said its employees should eat at Cracker Barrel when practical, but that the policy is not new.
It’s just the latest example of how social media can quickly shape public opinion of a brand, regardless of whether the story is accurate.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.