Chipotle Mexican Grill

Marketing

Chipotle to borrow from casual dining with test of Happier Hour

The fast-casual chain is looking to improve its perception of value and drive traffic. One idea to be tested later this year will be a daypart offering maybe a couple of tacos and a drink for under $10.

Consumer Trends

Can Chipotle get its higher-income diners to stick around?

Retail watch: The fast-casual burrito chain can take some lessons from discount retailers that have also seen an influx of wealthier consumers.

The fast-casual burrito chain is not raising prices because of wealthier diners, the company said, but it does plan to focus more on those customers.

The Bottom Line: The two Mexican chains have long been among the industry’s most consistent performers. But that changed last year, at least for one of them.

The fast-casual chain said the smaller dishes on the protein menu have been a hit, in part as an affordable entry point. It's part of a growing movement, fueled by GLP-1 drug users and others who don't want to spend on food they won't eat.

The fast-casual chain said same-store sales declined 2.5% for the fourth quarter, with transactions down more than 3%. But CEO Scott Boatwright said the protein push is resonating with younger diners.

The fast-casual chain is scheduled to report fourth quarter and full-year earnings on Tuesday. One research firm said data indicates positive trends in November and December. Will it be enough to end a streak of negative traffic?

The fast-casual chain began ramping up menu innovation last year. Expect to see a mix of new and previous menu items, including the return of Chicken al Pastor next month.

After nearly eight years with the fast-casual chain, Brandt is departing immediately. His role will be filled by Stephanie Perdue as interim chief marketing officer. In addition, Chief Legal Officer Roger Theodoredis also stepped down.

The fast-casual chain is jumping on the protein-craze train with new menu items targeting guests looking to up their macros, including the brand's first snack: a cup of Adobo chicken chunks.

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