Motley Fool Money Chipotle's Pricing Power is Real
Feb 9, 2022
Join Jason Moser, a restaurant stock expert, and Ron Gross, a mergers guru, as they dive into the fascinating world of Chipotle's impressive pricing power. Moser reveals how Chipotle's bold strategies could push them towards 7,000 locations while analyzing Yum Brands' franchise model. Gross dissects the anatomy of company acquisitions, exploring payment methods and the fine line between friendly and hostile takeovers. Discover the intricacies of the acquisition landscape and what it means for investors!
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Chipotle's Pricing Power
- Chipotle's CFO, Jack Hartung, made a bold claim about the company's pricing power.
- Their Q4 results proved him right, raising questions about future price increases.
Digital Sales and Rewards Program
- Chipotle's digital sales growth is slowing as life returns to normal, with more in-person dining.
- However, their rewards program boasts over 26.5 million members, providing valuable data.
No Resistance to Price Hikes
- Chipotle experiences no customer resistance to price increases, according to CEO Brian Nickel.
- They plan for digital orders to remain strong, with 80% of new locations featuring "Chipotle lanes."