Chipotle is raising its prices for the first time in three years after a surge in beef and avocado prices.
The burrito chain will start increasing prices by mid-single digits by the end of the quarter, Jack Hartung, Chipotle's chief financial officer, said in a call with analysts Thursday.
A 5% increase would raise the cost of Chipotle's chicken burrito from $7.81 to about $8.20 in New York.
Chipotle reported Thursday that first-quarter earnings rose 8.5%, but food costs were 34.5% of revenue, up from 33% a year ago.
Chipotle CEO Steve Ells warned of a potential price increase in October.
This shows food prices going back a decade. You can see the recent surge in food prices that's putting pressure on Chipotle.
Commodity Research Bureau
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