CEO Brian Niccol touts competitive wages, value in burritos

While addressing the “pricing lever” when it comes to keeping competitive wages, Chipotle Mexican Grill Inc.

(NYSE: CMG) said it benefits from high customer appreciation for its products.

“The chicken burrito for most parts of the country is still less than $8. The chicken bowl is still less than $8, and that’s phenomenal value,” Chief Executive Brian Niccol said.

The quick-service Mexican food chain— No. 2 among OC restaurant chains with $7.5 billion in systemwide sales last year— raised menu prices about 4% last December to offset incoming labor costs. After a higher level of commodity inflation than expected in the first quarter, Chipotle increased prices another 4%.

Chief Financial Officer Jack Hartung anticipates another step up in the second quarter but expects relief at the end of the year.

Also strengthening its workforce through labor innovation, Chipotle has introduced new artificial intelligence options from its robot chipmaker for help in the kitchen to a new learning management system for training.