A Wells Fargo analyst ordered dozens of burritos from Chipotle Mexican Grill, Inc CMG to prove a point about portion sizes amid increased attention in fast food.
What Happened: A post on X relayed a study from the Wells Fargo report.
While the median weight of the burritos was above 21 ounces, the sample still varied wildly. The lightest burritos weighed in under 15 ounces, three standard deviations away from the median and almost half the weight of the largest burrito.
The note also found that weight differs substantially by location.
Why it Matters: In 2024, Customers have complained about “shrinkflation” at Chipotle locations. Patrons have resorted to walking out of the restaurant if they are unsatisfied with their portions, a now-viral phenomenon. Customers have also filmed their burritos being made in hopes that employees will be more generous with size.
In a May Fortune interview, CEO Brian Niccol claimed that the “portions have not gotten smaller” and reiterated that customers can simply ask employees for larger portions if they’d like.
Fadem’s study substantiates the claim that some burritos made by the California-based chain are severely undersized. Further efforts to standardize portion size could lead to a more consistent product.
Despite customer complaints of a supposed decline in quality, Chipotle has never been more successful. The company is rapidly opening new locations, revenues have nearly doubled from 2020 and margins have continually expanded. Its stock is up over 36% in 2024 and market capitalization is now above $80 billion.
Hedge fund manager Bill Ackman recently reduced Pershing Square’s holdings in Chipotle, a sign of profit-taking amid the stock's robust performance, which has outpaced the broader market.
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