If your Chipotle order seems a little expensive, it’s not your fault.
The fast-casual Mexican chain announced it has increased menu prices by 2% to combat the effects of inflation.
“For the first time in over a year, we have implemented modest price increases of approximately 2% nationwide to offset inflation,” Chipotle Chief Executive Officer Lori Sharrow said in a statement obtained by USA TODAY on Thursday. He said this in a statement:
Chipotle said in its third-quarter earnings report in October that food, beverage and packaging costs accounted for 30.6% of total revenue in the third quarter of 2024, up from 29.7% in the third quarter of 2023.
The company attributed the increase to higher costs for “several ingredients,” primarily avocados and dairy products, as well as the company’s focus on “consistently ensuring generous portions” of raw material usage. He said this was due to an increase in volume and a change in protein formulation due to the success of smoked brisket. Limited time offer.
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According to Reuters, the move comes after Chipotle released an earnings report in October that fell short of market expectations for same-store sales growth. The company is also in the first few months after former CEO Brian Nicol left for Starbucks.
According to the U.S. Department of Agriculture, wholesale poultry prices were down 4.5% this October compared to October 2023, and prices are projected to drop a net 0.6% this year.
However, beef prices were up 1.9% in October 2024 compared to October 2023 and are predicted to rise faster than most meat categories due to “tight supply and continued demand.” There is.
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Gabe Hauari is USA TODAY’s national trends news reporter. X You can follow him at @GabeHauari or email him at Gdhauari@gannett.com.
