Bernie Sanders attacks Chipotle, accuses it of price gouging

  • Bernie Sanders has attacked the fast-food chain Chipotle over the hike in the price of its menu items.
  • In a tweet, the senator denounced “corporate greed” and accused the company of inflating prices.
  • In its fourth quarter earnings report, the company said total revenue rose 22.0% to $2.0 billion.

Bernie Sanders called Chipotle on Twitter about the rising cost of his meals and accuses him of price gouging. It comes after the fast food chain released its fourth quarter results on Tuesday.

The US senator tweeted on Friday: “Corporate greed is that Chipotle grew its profits 181% last year to $764 million, handing its CEO a 137% pay rise to $38 million in 2020 and blaming the rising cost of a burrito on a minimum-wage worker who got a 50-cent pay raise. That’s not inflation. That’s price gouging.

Chipotle did not immediately respond to Insider’s request for comment.

The company’s earnings reports showed a 22% increase in total revenue to $2 billion from a year earlier. Chipotle’s earnings report focused on revenue, rather than the earnings Sanders referred to.

According to the Macrotrends website, Chipotle’s operating profit for the twelve months ending September 30, 2021 was $0.764 billion, representing a 181.3% year-over-year increase. Operating profit refers to the amount of profit earned from the operations of a business after essential expenses have been deducted.

In June, Insider reported that CEO Brian Niccol earned $38 million in 2020. Niccol’s compensation was 2,898 times the Chipotle worker’s median salary of $13,127 in 2020, based on an employee. working 25 hours a week in Illinois, the report added.

When the earnings report was released on Tuesday, Niccol said in an accompanying statement that “2021 has been a standout year for Chipotle, underscoring the strength and resilience of our brand.”

Insider’s Huileng Tan reported on Wednesday that the company may raise prices further this year after rising 4% in December.