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Is Chipotle Making McDonald's Mistake?

By Rick Munarriz - Apr 23, 2013 at 6:30PM

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New Patron tequila margaritas are coming to most Chipotle stores, but that could be a mistake.

Chipotle Mexican Grill (CMG 1.70%) has a plan to boost its moribund comps.

The fast-growing restaurant chain will be adding premium margaritas -- handmade with Patron silver tequila, triple sec, agave nectar, and fresh lime -- to more than half of its restaurants next week.

These drinks won't be cheap, priced between $6.50 and $8 apiece. 

The allure may be obvious. Average ticket prices could head higher as customers trade up from sodas and beers. However, McDonald's (MCD 2.14%) also thought that it could boost sales and woo new customers by adding premium beverages. It hasn't exactly worked out well lately. Comps turned negative in October for the first time in a decade, and customer complaints are growing. 

Is Chipotle biting off more of this tequila worm than it can chew?

In this video, longtime Fool contributor Rick Munarriz wonders if Chipotle's new product may result in confusion and slow-moving lines. There's also the fear that Chipotle's value proposition gets blurred. What do you think? Check out the video, then chime in with your thoughts in the comment box below. 

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McDonald's Corporation Stock Quote
McDonald's Corporation
MCD
$233.91 (2.14%) $4.91
Chipotle Mexican Grill, Inc. Stock Quote
Chipotle Mexican Grill, Inc.
CMG
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