Chipotle has diversified its avocado supply chain over the past two years, with CEO Scott Boatwright revealing that only about half of the company’s avocados come from Mexico. The chain sources avocados from Colombia, Peru, and the Dominican Republic in addition to Mexico.
This shift comes as President Donald Trump is considering imposing tariffs on Mexican imports, which could increase Chipotle’s cost of sales by 0.6 percentage points. The tariff would also impact other Mexican goods, such as limes, peppers, and tomatoes, that Chipotle imports.
Chipotle shares fell 5% in after-hours trading following the announcement of lower-than-expected comparable sales and revenue. The company had previously sourced avocados from Mexico during certain periods of the year, but has since shifted to alternative sources.
Source: https://www.businessinsider.com/chipotle-could-see-mexico-tariff-hit-despite-new-avocado-sources-2025-2