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Chipotle said that it has been consistently offering “generous portions” in an effort to satisfy the customers who complained on social media that they were getting skimped on the size of their servings.
Interim CEO Scott Boatwright told analysts on Tuesday that proof is on the company’s social media platforms, where he said people are “posting big burritos, big bowls and really excited about portioning they’re getting in the Chipotle brand.”
Boatwright said that it’s a “reverse of what we saw earlier in the year” when many TikTok users began sharing videos of workers assembling their Chipotle bowls, persistently requesting additional toppings.
“We know we’re delivering value for the consumer, especially in this really tight environment, and we’ll continue to lean into that,” he said.
CHIPOTLE CEO ADDRESSES BURRITO BOWL PORTION SIZES AFTER BACKLASH
CFO Adam Rymer also told analysts on Tuesday that the company had a higher usage of ingredients in the prior quarter due to its focus on “ensuring consistent and generous portions.” However, the company also faced higher costs for several items, most notably avocados and dairy, according to Rymer.
Interim CEO Scott Boatwright told analysts on Tuesday that proof of larger portions is on the company’s social media platforms. (Chipotle Mexican Grill / Fox News)
Still, Wall Street saw it as a smart play, with many firms raising their price targets on the stock.
CFRA Research Senior Vice President Arun Sundaram said that the company “essentially had no choice [but] to increase portion sizes given the backlash it received throughout social media.”
Sundaram continued saying that the bigger portion sizes should drive incremental traffic to stores, alongside initiatives like new limited-time offerings.
Former CEO Brian Niccol began to address the issue in July, shortly after customers first aired frustrations on social media, saying “there was never a directive to provide less to our customers.”
He added that generous portions had always been a core brand equity of the fast-casual restaurant chain.
Former CEO Brian Niccol began to address the issue in July, saying “there was never a directive to provide less to our customers.” (Jeenah Moon/Bloomberg via Getty Images / Getty Images)
Amid the criticism, Wells Fargo analyst Zachary Fedam started recording data from different Chipotle orders. Fedam, alongside other finance professionals, ordered and weighed 75 like-for-like burrito bowls across eight locations in New York City. They also tested the difference between online and in-store orders.
Based on the data, the smallest bowl ordered weighed 13.8 ounces, and the largest weighed 26.8 ounces.
Chipotle Mexican Grill Inc.
“That said, consistency varied widely, w/ some locations serving bowls that weigh ~33% more than other locations (on equivalent orders); and the heaviest digital/in-store bowls weighing 87%/47% more vs the lightest,” the report said.
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FOX Business’ Sydney Borchers contributed to this report.
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