Chipotle Mexican Grill

Chipotle has demonstrated the ability to raise prices with limited long‑term traffic damage, aided by a premium yet affordable positioning. In 2024, menu price increases partially offset higher usage of ingredients and inflation, while unit margins remained healthy.

The company also raised California pricing to help absorb the state’s fast‑food wage law. 2025 revealed elasticity at the margin as lower‑income cohorts pulled back, but management avoided broad discounting, relying instead on value communication, loyalty, and occasional limited‑time offers.

Over time, mix, equipment upgrades and Chipotlanes should allow check growth without undermining value. We see latent pricing power that can be used selectively, though not to the level of regulated monopolies.