2 ms·
Oh, how simple it is to fool the common folk. Chipotle is going to pay market wages, regardless, or it will have to close stores due to lack of employees. Its p
by listenallyall 5y ago
Oh, how simple it is to fool the common folk. Chipotle is going to pay market wages, regardless, or it will have to close stores due to lack of employees. Its pre-pandemic operating margin was over 20% so it can rather easily absorb a 4% boost in labor costs. What you, as a Chipotle customer, are paying, is a surcharge to help the CEO and exec team grow operating margin and profits and earn a big bonus. That's all.
(https://ir.chipotle.com/2020-02-04-Chipotle-Announces-Fourth-Quarter-And-Full-Year-2019-Results https://ir.chipotle.com/2020-02-04-Chipotle-Announces-Fourth...)
- jjeaff 5y agoBut does this grow operating margin or does it keep it around 20%? Labor costs have gone up, if by enough, then this is simply maintaining margins.