How Chipotle locations could limit the chain’s ability to raise prices
Yahoo Finance Live’s Julie Hyman and Brian Sozzi break down the chart of the day.
Video transcript
BRIAN SOZZI: OK, Chipotle is an earnings report to watch on Tuesday. And ahead of that report, here is our Chipotle themed chart of the day from Guggenheim. 73% of Chipotle locations in the United States are in zip codes with median incomes under $60,000 a year. That could limit how much Chipotle could raise prices to offset food and labor inflation. This was an interesting chart. I did not realize that, but I thought Chipotle would have more locations in higher income areas. Who doesn't love Chipotle? Rich people love Chipotle.
JULIE HYMAN: My question, though, is, are those in locations that people are commuting to again, first of all? And I would be curious as to the income strata of Chipotle shoppers, right? And Chipotle eaters. Is it higher than the median income of the area?
BRIAN SOZZI: Well, I'll have to look--
JULIE HYMAN: We need more data.
BRIAN SOZZI: --see if we get that chart coming up soon. But I will say this. As you know, I pay $20 for a Chipotle bowl, and I'm OK with it.
JULIE HYMAN: Wow.
BRIAN SOZZI: Yeah, I know.