Chipotle's revenue rose by 3% to $3.1 billion but same-store sales fell by 4%. Customers are increasingly choosing lower-priced meats, particularly chicken, over steak and barbacoa. Chipotle's finance chief noted a trend where customers opt for chicken, which costs less than the premium protein options. The popularity of chicken is reflected nationwide as it becomes the top protein source. Limited-time chicken products at Chipotle have also performed well, indicating strong consumer preference for chicken.
In a second-quarter earnings call on Wednesday, the burrito chain's finance chief, Adam Rymer, said customers are opting for lower-priced meats at their outlets.
Chipotle's steak and barbacoa proteins hold a roughly $2 premium over its chicken option.
Rymer also added that same-store sales were down because customers were visiting the outlets in smaller group sizes.
Chicken is rising in the ranks to become the most popular protein source in the US.
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