Bad News, Chipotle Is Raising Prices
Here’s some unfortunate news about one of America’s dietary staples: Fast-food faux Mexican cuisine.
Thanks to the soaring costs of beef, avocados and cheese, Chipotle CFO Jack Hartung said the company will raise its prices across the board, somewhere in the single digits, percentage-wise.
Which is a lot when it comes to lunch. On an eight-dollar chicken burrito, a ten-percent price hike would bring your cost to $8.80, or basically a whole dollar.
And this price increase doesn’t even take into account the rapidly rising cost of limes (which are almost a dollar per lime at the grocery store now!). So prices could go even higher.
Meanwhile, Chipotle is killing it.
Net income rose 8.5 percent to $83.1 million, or $2.64 per share, compared with $76.6 million, or $2.45 a share. Revenue jumped 24.4 percent to $904.2 million from $726.8 million during the period.
Chipotle expects to open 180 to 195 restaurants this year.
So they probably don’t need to do this. But they are. The increase will roll out over the next two quarters.
[Via NBC News]