Overview

• Chipotle implemented a 2% price increase across all U.S. locations, marking its first nationwide hike in over a year.
• The company attributed the increase to inflation-driven costs for key ingredients like avocados, beef, and dairy, as well as higher ingredient usage to ensure consistent and generous portions.
• This is the fifth price hike in four years, following a brief reduction in prices in October 2023, and comes as competitors like McDonald's and Starbucks pursue more budget-conscious strategies.
• Chipotle's Q3 earnings showed a 13% revenue increase but missed Wall Street expectations for same-store sales growth, with executives signaling the potential for price adjustments during the October earnings call.
• Analysts have responded positively to the price hike, with firms like Truist and Evercore ISI raising their stock price targets, citing strong customer traffic and resilience despite inflationary pressures.