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Chipotle (CMG-1.35%) announced it’s introducing its first new dip in five years, an adobo-infused ranch dressing. It’s available for a limited time starting June 17, “bringing a craveable kick to the brand’s signature burritos, bowls, salads, tacos and quesadillas.” Chipotle Rewards members can try it for free on launch day.
Though the burrito chain had a successful 2024, its forecast was dim for this year, which played out in its first-quarter sales. Revenue was up only because they opened more stores. Prices rose 2% in 2024, though the chain—which sources half of its avocados from Mexico—has promised to swallow the cost of new tariffs from the Trump administration, and not raise prices any further. Earlier this year, Chipotle also announced plans to expand into Mexico in 2026. Its shares are down almost 14% since January.
Can something as fuddy-duddy as ranch dressing really change the company’s corporate fortunes? Chipotle’s chief brand officer Chris Brandt thinks that “ranch has become a cultural phenomenon, especially among Gen Z, who are finding creative ways to enjoy it beyond the traditional salad,” he said in a press release. “Our new Adobo Ranch taps into this passion, giving fans a craveworthy way to customize their Chipotle order with a completely new flavor.”
The “completely new flavor” was invented in Alaska in the 1950s. It’s a mix of mayo, sour cream and milk with dried herbs—and, now, adobo. It became oddly popular with Gen Z consumers, which is why it appeared on menus at Taco Bell (YUM+0.90%), KFC, and Burger King (QSR+0.50%) in recent months.
And yet: a November New York Post (NWSA-0.90%) headline read, “Ranch dressing is canceled, say bored Gen Z foodies.”