Chipotle Bets Diners on Ozempic Want Its ‘Wholesome’ Food

Chipotle Mexican Grill Inc. is anticipating that people using appetite-suppressing drugs for weight loss will go for its “wholesome foods” instead of indulging in fried alternatives, even if they’re eating less.

“It’s clear that you’re going to lose some of your appetite,” Chipotle Chief Financial Officer Jack Hartung said Thursday in an interview. “But everything I’m reading is that the folks that are really serious about their health — whether it’s for weight loss or diabetes or both — they are more discerning about what foods they eat.”

Chipotle’s menu also gives diners flexibility to choose their portion sizes, he said. Some guests already buy a single taco, while others choose heaping a bowl with the intention of getting more than one meal out of it.

Chipotle reported third-quarter results late Thursday, with earnings and same-store sales — those at restaurants open more than a year — outpacing analysts’ estimates. The company expects comparable sales to accelerate in the fourth quarter despite higher prices. Shares rose the most since April in Friday trading.

Recent studies have started to outline the far-reaching effects of Ozempic and other medicines in that class, known as GLP-1 receptor agonists. Some studies have shown that people are more likely to crave healthier food options such as fruits and vegetables rather than junk food when taking the drugs.

Chipotle is keeping a close eye on the topic, including by scouring studies and reports from Wall Street analysts trying to estimate the potential impact on the industry, Hartung said. Still, the executive acknowledged uncertainty around the long-term effects.

“We stand for healthy and wholesome, so we think we’ll do OK,” he said. “But we don’t know what we don’t know.”

--With assistance from Madison Muller.

(Updates with earnings in fourth paragraph.)

Author: Daniela Sirtori-Cortina