Chipotle CEO Scott Boatwright on Growth, Value, and Stock Performance

Addressing Consumer Value Concerns

• 💡 The new "Build Your Own Chipotle" meal for small groups, priced around $85, is highlighted as an extraordinary value, especially with a $10 off promotion using code TRYBYOC.
• ⚠️ Concerns are raised about the perceived high cost of individual orders, with a $28 total for a burrito including delivery cited as exceeding social conventions for pricing.
• 🎯 Chipotle aims to keep average in-restaurant burrito prices under $10 while focusing on the benefit over price to deliver value.

Chipotle's Growth Story and Market Perception

• 📈 Despite being a strong growth story for two decades, Chipotle's stock has struggled, down 29% for the year, underperforming the S&P 500 and the restaurant group.
• ❓ The investment community is debating whether Chipotle is a growth company or a mature company, a perception the CEO aims to counter.
• 🚀 The CEO asserts Chipotle remains the best growth story in the industry, confident in their strategic plan and leadership team to return to mid-single-digit growth.

Navigating a Challenging Environment

• 📉 The industry has faced negative transactions for a couple of years, but Chipotle's two-year comparable sales numbers still outpace the industry and fast-casual segment.
• 🛠️ A strategic plan focusing on operations, digital, and marketing is in place to address consumer concerns and exceed expectations in the current environment.
• 📊 The company plans to continue growing restaurants at 8-10% annually, building 315-345 new locations this year.

Stock Performance and Buybacks

• 💰 Chipotle has bought back $430 million worth of stock, more aggressively this year, reflecting confidence in their strategy and plan.
• 🤝 The CEO acknowledges that while other restaurant stocks have performed better, Chipotle is focused on enhancing the consumer experience and communicating its value proposition more robustly through media channels.
• ✅ Confidence is expressed in the brand's ability to rebound once the macro environment stabilizes and consumer spending resumes, particularly by delivering on value.