Chipotle’s menu is expected to become pricier due to the rise in inflation.
According to Laurie Schalow, Chipotle’s Chief Corporate Affairs Officer, the company is implementing a “modest price increase” for the first time in over a year to counteract the effects of inflationary pressures.
The company did not specify the extent of the menu price hikes. Additionally, they also did not reveal the timing of when these adjustments would be implemented. Similar to other fast-food establishments, Chipotle is grappling with the need to raise prices to cope with rising operational expenses.
Chipotle initially revealed its intention to increase prices, back in June 2021, with the proposed increase potentially reaching up to 4%. Subsequently, in October 2021, the company indicated the possibility of additional price hikes to address margin-pressuring factors. Then, during an earnings call in July 2022, Chipotle officially announced that prices would indeed rise in the following month.
On Thursday, the Labor Department reported that the consumer price index increased by 0.4% compared to the previous month. This represented an improvement from August but still exceeded expectations. Year-on-year, prices went up by 3.7%, which aligned with the August figure and slightly exceeded the 3.6% forecasted by Refinitiv economists.
