Chipotle Mexican Grill has raised menu prices across the US for the first time in over a year to offset inflation. The 2% national price increase is driven by rising costs for key ingredients such as avocados, dairy, and beef. According to the Consumer Price Index, these costs have increased by an average of 1.9%, 1.3%, and 1.4% respectively over the past year.
The company’s food, beverage, and packaging costs rose to 30.6% of its total revenue in the third quarter, up from 29.7% the previous year. The popularity of Chipotle’s limited-time smoked brisket also contributed to increased ingredient costs as demand shifted towards more expensive protein options.
Despite the price hike, Chipotle reported a 13% year-over-year growth in total revenue, reaching $2.8 billion. The company plans to expand its footprint by opening up to 345 new restaurants in 2025, with over 80% of these locations featuring drive-thru service.
Source: https://thehill.com/homenews/5025476-yes-chipotle-is-raising-menu-prices-again-heres-why