Chipotle Requests Employees To Not Eat Chicken So They Can Sell More, Rescinds Soon

Zinger Key Points
  • Chipotle initially restricted employee chicken orders due to high demand.
  • CEO confirms temporary supply crunch but assures resolution.

Chipotle Mexican Grill Inc CMG reportedly instructed its employees recently not to opt for chicken in their meals due to high demand but has now lifted the restriction.

Chipotle informed its U.S. employees through email about the reintroduction of chicken al pastor, citing challenges arising from its success, reported Bloomberg.

The message from Chief Restaurant Officer Scott Boatwright requested employees to abstain from ordering chicken, stating it was to preserve supply for customers, as per the report.

Chipotle clarified that the directive was a request, not a mandate, and announced employees could resume ordering chicken as usual within a week.

Also ReadChipotle Mexican Grill Is In A ‘League Of Their Own’: 7 Analysts Revise Forecasts After Q1 Results

CEO Brian Niccol confirmed to Bloomberg that it was a temporary supply crunch but assured that the issue had been resolved with no ongoing challenges.

Employees at Chipotle’s only unionized U.S. store in Michigan voiced concerns over the company’s policy enforcement and the need for a secure union contract.

Chicken al pastor was highlighted as a successful marketing initiative contributing to increased sales in the first quarter.

Earlier this week, Chipotle said first-quarter revenue increased 14.1% year-over-year to $2.702 billion, which beat the analyst consensus estimate of $2.675 billion.

The fast-casual restaurant chain company reported adjusted earnings of $13.37 per share, which beat analyst estimates of $11.68 per share. 

Read NextChipotle To Spice Up Kuwait City: New Location Marks Decade-Long International Expansion

Chipotle Mexican Grill stock gained over 54% in the last 12 months. Investors can gain exposure to the stock via Vanguard Total Stock Market ETF VTI and Invesco Food & Beverage ETF PBJ.

Price Action: CMG shares closed higher by 6.33% at $3,111.97 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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