Chipotle Addresses Tariff Concerns with Diversified Avocado Supply

The restaurant chain downplays potential cost impacts from proposed tariffs, citing its efforts to reduce reliance on Mexican imports.

Chipotle sources only 50% of its avocados from Mexico, with the rest coming from Colombia, Peru, and the Dominican Republic, reducing its exposure to proposed tariffs.
The Trump administration has delayed a 25% tariff on Mexican and Canadian imports for one month, allowing more time for negotiations.
If the tariffs are enacted, Chipotle estimates a modest 0.6 percentage point increase in its cost of sales.
Chipotle raised menu prices by 2% in December 2024 to address inflation but has no immediate plans for further price hikes in response to tariff concerns.
Despite diversification efforts, avocados and other ingredients from Mexico remain a small but notable part of Chipotle's cost structure, accounting for about 2% of its total sales.