As more Americans grow anxious about the economy and start pulling back on eating out, CEO Scott Boatwright wants consumers to give Chipotle some more credit for its low prices.
The Newport Beach, California-based burrito-bowl chain reported sagging earnings Wednesday, including a 4% same-store sales decline and 4.9% dip in quarterly traffic. While Chipotle saw a 3% total revenue increase to $3.1 billion, the company cut its guidance, now expecting flat same-store sales growth for the year compared to its previous prediction of a low single-digit increase.
Chipotle CEO Scott Boatwright attributed the rough quarter—Chipotle’s second consecutive sales decline—in part to rocky economic conditions leading consumers to pull back. Chipotle’s same-store sales improved in June, and that’s likely to be the case for July as well, according to the company, but lackluster sales in April and May correlated with “consumer sentiment bottoming around that time.”
Boatwright added consumers have seemingly forgotten that Chipotle, compared to its fast-casual rivals, is a bargain.
“I don’t think we’re getting credit with the consumer today,” Boatwright told investors on Wednesday. “So what I talked to the team about internally is, How do we better communicate our value proposition and center around the core equities of the brand?”
