Chipotle Is Raising Prices For The First Time In Three Years

Business Insider

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Chipotle Burrito Bowl

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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.

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Food price index

Commodity Research Bureau



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