Chipotle raises menu prices in response to inflation, company says
If your Chipotle order seems like it has gotten slightly more expensive, it is not your imagination.
The fast casual Mexican chain said it has raised its menu prices by 2% as it deals with the impact of inflation.
“For the first time in over a year, we have taken a modest price increase of approximately 2% nationally to offset inflation.” said Laurie Schalow, Chief Corporate Affairs Officer at Chipotle, in a statement obtained by USA TODAY Thursday.
Chipotle said in its third quarter earnings call in October that food, beverage and packaging costs in the third quarter of 2024 were 30.6% of total revenue, an increase from 29.7% in the third quarter of 2023.
The company said the increase was due to inflation across "several ingredient costs," primarily avocados and dairy, higher usage of ingredients as the company focused on "ensuring consistent and generous portions," and a protein mix shift from the success of its smoked brisket limited time offer.
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The move comes after Chipotle missed market expectations for same-store sales growth in an earnings report released in October, Reuters reported. The company is also in the first few months after former CEO Brian Niccol left for Starbucks.
According to the U.S. Department of Agriculture, wholesale poultry prices were 4.5% lower in October of this year compared to October 2023, and those prices are predicted to decrease 0.6% on the net this year.
Prices for beef, however, were 1.9% higher in October 2024 than October 2023 and are predicted to increase faster than most meat categories due to "tight supplies and continued demand."
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Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at [email protected].