Here's What Chipotle Says It's Doing About Those Portion-Size Complaints

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Key Takeaways

  • Earlier this year, diners and societal media users began to kick astir information sizes astatine Chipotle restaurants.
  • On Wednesday, executives astatine Chipotle said location was ne'er a "directive" to make portions smaller and that nan institution is moving to reside amount issues astatine immoderate restaurants.
  • Those efforts will deed Chipotle's costs for a while, executives said.

Score 1 for nan internet: Fresh-Mex elephantine Chipotle Mexican Grill (CMG) says it's rededicated to convincing consumers that its bowls and burritos are arsenic large arsenic customers want them to be.

"Our guests expect this now much than ever, and we are committed to making this finance to reenforce that Chipotle stands for a generous magnitude of delicious, caller nutrient astatine adjacent prices for each customer, each visit," Chief Executive Officer (CEO) Brian Niccol said connected a Wednesday earnings convention telephone pinch analysts, a transcript of which was provided by AlphaSense.

Chipotle shares were precocious down almost 1% astatine $51.38 arsenic of 1:45 p.m. ET Thursday, eating into nan stock's year-to-date gains that are presently astir 12%.

Meals Measured by Analyst

Niccol's comments came aft Chipotle diners and societal media users began to sound concerns that their weren't getting arsenic overmuch nutrient arsenic they were accustomed to. That spawned reams of news coverage, arsenic good arsenic an investigation of sorts by a Wall Street expert who bought and measured dozens of Chipotle meals.

"There was ne'er a directive to supply little to our customers," Niccol said. "Generous portions is simply a halfway brand equity of Chipotle. It ever has been, and it ever will be."

What nan institution says: Consumer surveys indicated that location were immoderate "outlier" restaurants turning successful little information scores, truthful it's training and coaching to hole that—as good arsenic spending to make judge that astatine those restaurants, customers are happy, an effort that it expects to noticeably assistance expenses for a while.

"We decided that this marque equity called generous portions is thing that we don't want to return for granted," Chief Financial Officer (CFO) Jack Hartung said connected nan call. "We don't want to return thing that's been a affirmative for each these years and past have it turned retired to beryllium a antagonistic because of immoderate of nan social media comments."

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