Chipotle stock craters as company says young people without jobs can't afford their food anymore

[BlueWaveNeverEnd]

Chipotle stock craters as company says young people without jobs can't afford their food anymore

https://finance.yahoo.com/news/chipotle-stock-craters-as-company-says-young-people-without-jobs-cant-afford-their-food-anymore-155415667.html


Chipotle (CMG) on Wednesday cut its full-year sales outlook for the third straight quarter as the company continues to deal with a traffic decline and economic pressure on its core customer, particularly young people.

CEO Scott Boatwright said in the company's earnings release that the chain continues to see "persistent macroeconomic pressures."


On a call with analysts, the executive expanded on this idea, noting that Chipotle is "over-indexed" to a younger consumer, who he said are particularly under pressure.

"A particularly challenged cohort is the 25- to 35-year-old age group," Boatwright said. "This group is facing several headwinds, including unemployment, increased due loan repayment and slower real wage growth."

In August, the unemployment rate for Americans ages 20-24 stood at 9.2%, up from 7.9% a year ago.

Boatwright said the pullback in all income cohorts seen earlier this year has now widened, "with low- to middle-income guests further reducing frequency." Households that make $100,000 or less make up about 40% of its total sales

[hlthe2b]

1. And this is just one of the downstream disasters eminating from all things TRUMP!

It isn't just the youngsters no longer frequenting this or any other restaurant...

[tavernier]

2. No more Canadians

and far less tourism from all countries.

We’ve seen a marked difference here in Florida..

[BeerBarrelPolka]

3. I've only been to one a few times

but man the restaurant is so dirty! I can't get out anymore, but even before that, I swore off the place because it was truly a filthy place.

[mwmisses4289]

9. I stopped going to their stores when they began cheating their customers.

They wanted to dicourage penny use, and briefly (really briefly!) experimented with rounding up customers totals if the total came with cents. so if the total was $10.23, they would round up to $10.25, and give change for that amount. Needless to say, it cost them big time. Customers left in droves, and some never went back.

[OC375]

4. Homes, Cars, Food...

There’s a lot that becomes unaffordable when wages trail inflation for 50 years. This was inevitable. Bet less people upgrade TVs, laptops and kitchens this fall when they’re broker than normally, too. The consumer driven economy is dying. We need a new approach.

[durablend]

5. The consumer driven economy dying is on purpose

The 1% don't need us anymore. Cut off our food, healthcare and standard of living hoping we die off and stop "stealing" their resources.

[Autumn]

6. Their food is crap anyway.

[Prince99]

10. Serious?

They don't have a walk in freezers so all food is delivered very, very frequently and pretty much cooked in full view. Baffled by the statement.

[Autumn]

13. Yes and the one here is often dirty.

[NickB79]

7. Chipotle is one of the best fast food deals out there

Just had it yesterday. They'll give you extra scoops of beans and rice for free if you ask. My burrito was so big they couldn't close it 🤣

Basic chicken burrito with everything except guac was $10, and was enough for two meals. McDonald's is almost that cost for one meal, and is far less healthy.

[Raftergirl]

8. It's the only fast food we ever get. I only get the veggie burrito with fajita veggies, guacamole and sour cream.

H orders something different every time. Tbs, we only order from there once every 3 months or so, When we have Mexican food we order out from a locally owned place. It is, obviously, much more expensive. We also eat there, especially in nice weather when we can sit on patio.

[maveric]

11. Fake Mexican food.

I’m in San Diego. Love the real stuff.

[D_Master81]

12. I still get it every once in awhile

At almost $14 in for a bowl it’s a rarity anymore. More expensive and more rice, less meat isn’t the combo that people want