2024-07-30 04:35:00 ET
When people started complaining about portion sizes at Chipotle Mexican Grill (NYSE: CMG) earlier this year, Wells Fargo analyst Zachary Fedam took matters into his own hands. In the name of scientific discovery, Fedam and his team ordered a whopping 75 identical burrito bowls from various locations of the restaurant chain, meticulously weighing every single one. And what they found was shocking.
The difference between Fedam's heaviest and lightest bowls was 13 ounces -- one was roughly twice as big as the other one. And bowls fell anywhere across this entire spectrum. It turns out that the people complaining on social media about portions being variable had a valid point after all.
That's unfortunate for Chipotle Mexican Grill because its initial response to the social-media backlash wasn't great. CEO Brian Niccol jumped on TikTok to push back on the trend when it started. And he started his video by saying, "First, I can tell you the portions have not gotten smaller." But Fedam's delicious research later proved otherwise.
For further details see:
Investors Can't Ignore This Red Flag From Chipotle