Chipotle Mexican Grill is hoping that Americans’ love for ranch will boost its sales.
On June 17, the burrito chain is launching Adobo Ranch, a spicier take on the iconic condiment that has transcended salads to adorn pizza, chicken wings and chips.
In the first quarter, the company reported its first same-store sales decline since 2020.
But Adobo Ranch could help to boost the company’s sales if it draws cautious diners back to the chain’s restaurants.
Adding Adobo Ranch to an order will cost an extra 75 cents.
Chipotle Mexican Grill hopes its sales will increase as a result of Americans’ love of ranch.
Adobo Ranch, a hotter version of the famous condiment that has expanded beyond salads to be used on pizza, chicken wings, and chips, will be introduced by the burrito chain on June 17. This is Chipotle’s first new dip since their 2020 launch of queso blanco.
The launch coincides with Chipotle’s efforts to bounce back from a challenging start to the year. The company reported the first same-store sales decline since 2020 in the first quarter. Executives pointed to a decline in consumer spending driven by growing economic concerns.
Traffic would not increase until the second half of the year, the company added, and it lowered the upper end of its forecast for same-store sales growth for the entire year.
Chipotle’s market capitalization has dropped to $71 billion as a result of a 12% decline in its shares this year.
However, if Adobo Ranch attracts cautious diners back to the chain’s restaurants, it could help increase the company’s sales.
According to the company, adobo peppers, sour cream, and herbs and spices are used to make the dipping sauce. Orders that include Adobo Ranch will incur an additional 75 cents.
Ranch sells more than ketchup, but according to NIQ retail sales data, mayo is still the most popular condiment among Americans. S. . buyers.
