Chipotle is elevating its U.S. costs to offset inflation and to compensate for a promise to extend portion sizes.
Chipotle’s chief company affairs officer, Laurie Schalow, confirmed Friday that the Mexican restaurant chain was implementing a 2% worth improve nationally. Schalow mentioned it’s the primary time the California-based firm has raised its costs in additional than a 12 months.
Chipotle revealed the worth improve after an analyst report launched earlier this week by funding financial institution Truist Securities famous a 2% worth improve at roughly 20% of the chain’s 3,500 U.S. shops.
Truist, which raised its worth goal for Chipotle’s shares, additionally reported that buyer site visitors on the chain’s eating places accelerated in November.
Chipotle mentioned in October that its meals, beverage and packaging prices all elevated within the third quarter. It cited avocados for example.
Avocado shipments from Mexico to the U.S. have been briefly suspended in June after two U.S. Department of Agriculture staff have been assaulted and quickly held by assailants within the Mexican state of Michoacan.
Chipotle additionally cited the price of guaranteeing it was offering “constant and beneficiant parts” to its clients. Former Chairman and CEO Brian Niccol mentioned in July that Chipotle was retraining staff at roughly 10% of Chipotle’s shops after clients complained on social media that they have been getting smaller parts.
Niccol left Chipotle in September to change into the chairman and CEO of Starbucks, which has mentioned it gained’t increase costs by way of September 2025.
Restaurant worth inflation has aggravated U.S. customers. The worth of meals eaten away from house rose 30% between October 2019 and October 2024, based on authorities figures. The worth of meals eaten at house rose 27% in that very same interval.
Earlier this 12 months, McDonald’s mentioned it was seeing extra clients eat at house as a substitute of getting quick meals due to worth will increase. The firm responded with a $5 meal deal and different reductions.
