Chipotle still has pricing power despite record-high inflation: CFO
Chipotle reports $2 billion in revenue for Q1, beating expectations
Chipotle CFO says company still has pricing power despite record-high inflation
Chipotle CFO Jack Hartung discusses U.S. inflation, arguing it 'is one of the most challenging environments to predict.'
As inflation poses a new round of challenges for the food industry, Chipotle continues to thrive as a fan favorite among many restaurant goers despite being forced to raise its prices.
Jack Hartung, CFO of Chipotle Mexican Grill joined "Mornings with Maria" to discuss the company’s standing in the current economic climate. Hartung said this inflationary period is "the worst" he’s seen but praised the company for its customer-first mindset and prioritizing its quality ingredients.
"I would say over the years we’ve been behind a little bit in raising prices, and now we’ve done that intentionally," he told Maria Bartiromo.
"We’ve intentionally invested in higher quality food. We’ve intentionally found efficiencies elsewhere on the panel other than on our food line so that we bring a great value to our customers," Hartung continued.
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Chipotle CFO Jack Hartung discusses inflation during an appearance on "Mornings with Maria" on April 27, 2022. (Photo by Joe Raedle/Getty Images) (Getty Images/ Joe Raedle / Getty Images)
Though the company is still trying to navigate its way through inflation uncertainty, Hartung said Chipotle still has pricing power.
"In most of the country, you can still get a chicken burrito for less than $9. And that’s high quality, sustainably raised ingredients that goes into that burrito. And it’s a lot of food as well. So our customers still think we’re a great value," he said.
Despite raising prices, Hartung said the company is still focused on investing in its customers.
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The popular chain has opened up 80% of its new restaurants and unveiled its Chipotle Lane, creating a "frictionless" environment for customers according to Hartung.
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"Our customers love that our digital experience in those restaurants is much higher than the average restaurant, and we’ll continue to invest in the convenience of those channels," Hartung explained.
As pandemic-related restrictions were lifted, in-restaurant dining has grown 33% contributing to the company’s Q1 success.
"We can’t control the economy, but if we execute well and create a great experience for our customers, we do think that food traffic is going to continue," Hartung said.