Chipotle Goes Premium as Sales Slide and Rivals Discount
To be or not to be — premium, that is. While the fast-casual world wrestles with that question, ChipotleCMG has made its choice. CEO Scott Boatwright refuses value meals even as diners flee to grocery stores, declaring, “Our food is … worth every penny.” But with the stock down 33.8% in a year and rivals winning with the opposite playbook, his positioning gambit looks risky.
- Same-store sales dropped 2.5% in Q4, with flat 2026 growth projected — coming as social media erupts over $35 tabs for two that cost more than a sit-down restaurant.
- Analysts sayCMG would lose more customers than gain by discounting — as large portions already deliver value and joining the race to the bottom would erode its moat.
The other side of the bet: While Chipotle stumbles, McDonald’sMCD posted 5.2% same-store sales growth in Q4, with analysts expecting the “most meaningful earnings growth since 2023.” But the value push came at a cost as franchisees revolted and even adopted a “Franchisee Bill of Rights” to defend their “right to set prices without fear of recourse.” Ultimately, neither bet looks safe when one loses customers, and the other loses its operators. Call it another value trap.