Back in October, Chipotle announced in its third-quarter earnings report that food, beverage and packaging costs went up from 29.7% to 30.6% of total revenue due to inflation. Now, the burrito chain may implement another price increase to offset the costs of raw ingredients that have been hit hard by inflation — like avocados, queso, and sour cream — according to a recent report from the Wall Street Journal.
“With inflation for its ingredients in the low single digits, Chipotle executives are considering raising prices but want to maintain its appeal to consumers looking for deals and discounts,” the Journal’s Jennifer Williams wrote. Despite the higher menu prices, Chipotle will remain a more cost-effective option for customers compared to similar alternatives, Chipotle’s Chief Financial Officer Adam Rymer told the outlet.
