Chipotle (CMG) CEO Scott Boatwright has pretty much declared victory in overcoming one of the burrito chain’s biggest gripes among customers: that the food has gotten too expensive after several years of price increases.
“Our affordability scores were better in Q2 than they’ve been in probably the past couple of years. I think we’re making meaningful progress as it relates to value at Chipotle,” Boatwright told Wall Street analysts on a late Wednesday earnings call.
Chipotle has leaned heavily into affordability this year by expanding its high-protein menu, introducing new cups with chicken or beef that could be had for a few bucks. The company has also rolled out a series of digital promotions for its reward members, including free double-protein offers, limited-time free delivery, and buy-one-get-one deals.
Boatwright even said in May that consumers should just “ask for more” food if they think they have been shortchanged.
“What we also learned … is value isn’t just about discounting and price point,” he said on the Power Players With Brian Sozzi podcast. “It’s about convenience, it’s about execution, it’s about menu innovation. There’s a host of things that the consumer’s looking at to determine value. Obviously, the introduction of the high-protein menu is playing a part in that, as well as an approachable price point with an emerging trend around protein.”
The byproduct of the efforts is a more classic (aka solid) Chipotle earnings report, though not as sizzling as the chain’s heydays.
Chipotle delivered a better-than-expected second quarter as revenue climbed 9.3% to $3.35 billion. Adjusted earnings of $0.33 a share topped Wall Street estimates. Comparable restaurant sales increased 2.2%, driven by gains in both customer traffic and average check size.
Management also raised its full-year outlook, now forecasting low-single-digit comparable sales growth, up from its prior expectation of flat growth.
Shares rose 8% in early trading on Thursday. Even with the stock’s earnings pop, it’s still a laggard to the S&P 500’s (^GSPC) 7% gain, per Yahoo Finance AlphaSpace data.
“Zooming out, Chipotle’s efforts to drive top-line growth are translating into traffic growth and year over year restaurant level margin expansion may come as soon as 4Q26, indicating that the company is firmly on a path to accelerating top and bottom-line growth over the near-term, which should support further multiple expansion, in our view,” Citi analyst Jon Tower wrote in a note to clients.
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the ‘Power Players With Brian Sozzi’ podcast and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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