As inflation hits a new 40-year-high and consumer sentiment continues to dwindle, Chipotle (NYSE: CMG) seems to be making a case that it's insulated from such pressures. During the first week in June, when national average gas prices surpassed $5 for the first time, Chipotle experienced a traffic increase of over 18%, despite raising its menu prices by about 10% year over year.  

This traffic pattern could be explained by the burrito chain's position against its fast-casual peers. Although Chipotle's prices are significantly higher than they were in 2020, Chipotle remains about 10% cheaper for consumers than Qdoba and Moe's Southwest Grill, according to industry analyst BTIG.

BTIG predicts the chain will remain a value leader, especially as the very definition of value seems to have changed. As younger, more health-conscious, digitally native consumers gain more spending power, "value" now means not only "affordable," but also "convenient, healthy, and hearty." With its digital infrastructure and its "food with integrity" brand positioning, Chipotle checks all of those boxes.

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Source Fool.com