Chipotle Mexican Grill has announced a 2% menu price increase nationwide, citing higher input costs such as dairy, beef, and avocado. The burrito chain aims to offset inflationary pressures in the face of declining demand for dining out.
The move follows increased prices set by restaurants and fast-food chains last year due to rising inflation. However, Chipotle’s executives had previously hinted at a potential price hike in early 2025 when demand trends began to soften.
Despite missing market expectations for quarterly same-store sales, the company believes its modest price increase is a positive signal about current demand trends. The new prices are also seen as a response to rising labor costs, following the implementation of the FAST Act, which raised wages for fast-food chain workers in California earlier this year.
The 2% menu price increase is the first national price hike by Chipotle in over a year, and reflects the company’s efforts to maintain profitability amid an uncertain restaurant environment.
Source: https://finance.yahoo.com/news/chipotle-mexican-grill-lifts-menu-190036125.html