Chipotle Mexican Grill to raise menu prices in U.S. Northeast and Southeast in coming weeks; changes in other markets to follow, says company
June 28, 2011
Chipotle Mexican Grill Inc. says it will raise menu prices for the first time in three years in the Northeast and Southeast in the coming weeks. The company says changes in other markets will follow, Dow Jones reported June 27.
Although the company had not expected to raise prices until the second half of the year, it has experienced greater pressure recently due to high commodity costs, particularly for beef, and immigration probes at several of its stores.
Food costs will comprise 32% to 35% of overall costs, a rise from 32% in the first quarter.
Chipotle’s restaurant-level operating margin dropped to 25.2% from 26.1% in the first quarter.
Food inflation is expected to continue rising in 2012, say experts.
The primary source of this article is Dow Jones, New York, New York, on June 27, 2011.