Let the good times roll at Chipotle (CMG): The company said it’s about to test a happy hour deal.
“We’re going to try it and see how it goes. We’re going to call it Happy Hour, so think about maybe a couple of tacos and a drink sometime during the middle of the day… And we feel like it’s a compelling offering and creates value for our consumer,” Chipotle CEO Scott Boatwright told me on Yahoo Finance’s Market Domination (video above).
“So we have more work to do on exactly what we’re going to launch in the test, but we’re thinking about something probably under $10… I think it’s our way to really contribute to the community in a meaningful way and really expand that time slot to bring more customers into the restaurants,” Boatwright added.
Chipotle gave away $1 million in free food as part of a Super Bowl promotion. The codes, available to the first 100,000 people to redeem them, are valid in the US until February 12.
Boatwright confirmed to Yahoo Finance that Chipotle gave away 100,000 meals and hinted that the company could run similar promotions later this year.
Chipotle has had a one-year stretch of not looking like Chipotle, meaning its earnings and stock price aren’t in high-growth mode.
The restaurant chain’s comparable sales in the fourth quarter fell 2.5% as it continued to battle weak customer traffic trends amid affordability difficulties. The company sparked an online debate after Boatwright revealed on the earnings call that 60% of its top clients earn more than $100,000 a year.
Its 2026 outlook disappointed the Street when the company said it expects sales in 2026 to be flat. The Street expected an increase of 1.8%.
While the company signaled a decent start to the first quarter, sales remain subdued. The company was unwilling to forecast a strong recovery, as the cold winter has also kept consumers at bay.
Chipotle shares are down 32% in the past year, compared with a 6% rise for McDonald’s (MCD), which has been more aggressive in marketing new affordable menu options.
To turn things around, Chipotle plans to introduce several limited-time offerings, such as chicken al pastor. It also launched a grilled chicken small plate for $3.95 to reach cost-conscious consumers.
“We would like to see traffic return to consistently positive trends to argue for multiple expansion or becoming more constructive,” said JPMorgan analyst John Ivankoe.
Brian Sozzi is the executive editor of Yahoo Finance and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, instagramand LinkedIn. Story tips? Send an email to brian.sozzi@yahoofinance.com.