By Chipotle Mexican Grill is gearing up for its highly anticipated “burrito season” which takes place from March to May. During this time, warmer weather attracts more customers, especially college students. As a result, Chipotle plans to hire 19,000 new full- and part-time employees. The company also aims to expand its presence in North America, with a target of 7,000 restaurants, up from 3,300 in September. Chipotle’s focus for recruitment? Gen Zers.
Interestingly, Gen Zers already make up 73% of Chipotle’s workforce. Although the youngest Gen Zers are still in middle school, the oldest will turn 27 this year. According to Glassdoor Economic Research, Gen Z employees are set to overtake baby boomers in the workplace this year. Moreover, the World Economic Forum predicts that by 2025, Gen Z will represent a third of the global workforce.
To cater to this young demographic, Chipotle is introducing various initiatives. These include a plan to assist employees in paying off their student loans while saving for retirement. Additionally, a debit card will be provided to help build credit. Chipotle is also expanding access to mental health resources and offering financial education. The company recognizes that Gen Zers face specific financial challenges such as credit card debt and a lack of confidence in managing money.
It is important for Chipotle to engage Gen Zers effectively due to their tendency to change jobs frequently. To address this challenge, Chipotle has invested in sustainable start-ups, extended operating hours in college towns during Halloween, and even introduced TikTok-inspired menu items. These efforts have paid off as Chipotle ranks among the top five restaurant brands preferred by Gen Zers, as per Piper Sandler’s survey titled “Taking Stock with Teens.”
Stay tuned to see how Chipotle’s burrito season unfolds!
Companies
Exxon Mobil Lawsuit and FAA Freezes Boeing Production
Exxon Mobil has taken legal action against two investment firms who are planning to introduce a shareholder proposal aimed at reducing emissions. In another development, the FAA has frozen an increase in Boeing’s 737 MAX production.
Earnings Week Highlights
Deals
Macy’s Rejects Takeover Offer, FDJ Acquires Kindred, and Sanofi’s Acquisition
Macy’s has declined a $5.8 billion takeover offer from Arkhouse Management and Brigade Capital Management, despite it being a 19% premium. Meanwhile, France’s national lottery, FDJ, has agreed to acquire Sweden’s Kindred for $2.7 billion, creating a major player in the European betting industry. In a separate deal, Sanofi has announced plans to purchase California-based Inhibrx for $2.2 billion. Sanofi intends to retain Inhibrx’s lung-cancer therapy and spin off the remaining parts of the company. On the other hand, Sony has decided to cancel its $10 billion deal for India’s Zee Entertainment due to a disagreement over the CEO role.
Next Week
Tuesday 1/30
Earnings Reports from Major Companies
Next week will see the release of earnings reports from over 100 S&P 500 companies. The most anticipated results will come from Alphabet and Microsoft, who are announcing their quarterly performance on Tuesday. Amazon.com, Apple, and Meta Platforms will follow on Thursday. These five companies carry a combined weighting of 24% in the S&P 500 index. Last year, they achieved an average increase of 88%, and so far this year, they have experienced an average increase of 6.5%.
Federal Open Market Committee Decision
The Federal Open Market Committee (FOMC) is set to announce its monetary-policy decision. It is widely expected that the federal-funds rate will remain unchanged between 5.25% and 5.50%. Market participants will be keenly listening to Fed Chairman Jerome Powell’s post-meeting conference for any indications about future interest rate cuts. Despite strong GDP growth in 2023 and a tight labor market, there is a 50% chance, according to traders, that there may be a quarter-of-a-percentage-point rate cut at the March FOMC meeting.
Friday 2/2
Jobs Report for January
The Bureau of Labor Statistics will release the jobs report for January. Analysts predict an increase of 175,000 nonfarm payrolls, following a gain of 216,000 in December. The unemployment rate is also expected to see a slight uptick from 3.7% to 3.8%.
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