Chipotle’s menu is slated to get more expensive.
Chipotle Chief Corporate Affairs Officer Laurie Schalow told FOX Business that, for the first time in more than a year, the company is making a “modest price increase” to offset inflationary pressures.
The company didn’t provide details on how much menu prices will rise or what items will be impacted. The company also didn’t disclose when the change will take effect.
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Several fast-food companies including McDonald’s and Domino’s Pizza have felt the pinch and have been forced to boost prices in order to keep up with the increase in operational costs.
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Chipotle, in particular, first announced in June 2021 that it would raise prices by as much as 4% to offset the cost of increased employee wages.
A few months later, in October 2021, the company hinted that it could raise prices further to combat pressures that would squeeze margins. It announced during an earnings call in July 2022 that prices would increase the next month.
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Chipotle Chief Financial Officer Jack Hartung told investors last February that the chain will not take a price increase just to boost comparable sales.
Still, in April, Hartung admitted that the company is still “running the menu price increase compared to last year at about a 10% range.”
The Labor Department said Thursday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.4% in September from the previous month, a slight improvement from August but still more than expected.
Prices climbed 3.7% from the same time last year, matching the August reading and coming in slightly higher than the 3.6% projected by Refinitiv economists.
FOX Business’ Megan Henney contributed to this report.