Chipotle plans price increases after pausing hikes this year

Chipotle plans price increases after pausing hikes this year


Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia, Pennsylvania.

Mark Makela | Reuters

Chipotle Mexican Grill is planning to raise prices again.

“For the first time in over a year, we will be taking a modest price increase to offset inflation,” Chipotle Chief Corporate Affairs Officer Laurie Schalow said in a statement to CNBC.

The company did not share how much menu prices will rise as a result of the decision.

After peaking last June, inflation has cooled. Prices for many goods and services are still rising but at a slower rate. The 12-month consumer price index rose 3.7% in August after climbing 8.3% a year earlier, according the Bureau of Labor Statistics.

The burrito chain started hiking its menu prices in June 2021, citing the cost of rising wages for its employees. It raised its prices again during the first three months of 2022 and then again in July of that year.

But Chipotle paused its price hikes as some customers pulled back on restaurant spending and ingredient costs stabilized. In April, CEO Brian Niccol said the chain had demonstrated its pricing power but would hold off on raising prices any more. At that time, its prices were up roughly 10% compared with the year-ago period.

Three months later, Niccol said Chipotle would reconsider its pricing as the company’s fourth quarter drew closer.

Chipotle’s stock has risen 30% this year, giving it a market value of $50.1 billion. The company is expected to report its third-quarter earnings Oct. 26.

Insider first reported that Chipotle’s prices are going up again.



Source

Here are the retailers raising prices as Trump tariffs take hold
Business

Here are the retailers raising prices as Trump tariffs take hold

A person picks out clothing in a store as retailers compete to attract shoppers and try to maintain margins on Black Friday, one of the busiest shopping days of the year, at Woodbury Common Premium Outlets in Central Valley, New York, U.S. November 24, 2023.  Vincent Alban | Reuters Consumers who hoped tariffs would not […]

Read More
This is why Jamie Dimon is so gloomy on the economy
Business

This is why Jamie Dimon is so gloomy on the economy

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Tom Williams | Cq-roll Call, Inc. | Getty Images The more Jamie Dimon worries, the better his bank seems to do. As JPMorgan […]

Read More
Summer rentals in the Hamptons are down 30%
Business

Summer rentals in the Hamptons are down 30%

Key Points Summer rentals in the Hamptons are down 30% from the same period in previous years, according to Judi Desiderio of William Raveis Real Estate. Brokers who focus on ultra-high-end rentals are seeing an even bigger drop and say their rental business is down between 50% and 75%. Some renters may be holding out […]

Read More