(NEXSTAR) — I'm not imagining it. That burrito bowl got a little pricey. Chipotle Mexican Grill recently confirmed that it has increased menu prices across the United States.
“To offset inflation, we implemented modest price increases of approximately 2% nationwide for the first time in more than a year,” Chipotle Chief Executive Officer Lori Shallow said in a statement obtained by Nexstar. said.
The slight price increases come as the fast-casual chain grapples with rising costs for key ingredients.
among them Third quarter financial reportChipotle noted that food, beverage and packaging costs rose to 30.6% of total revenue, up from 29.7% a year ago. This increase was driven by higher prices for ingredients such as avocados and dairy products, as well as efforts to ensure consistent portion sizes.
Additionally, the company said the popularity of its limited-time smoked brisket increased raw material costs as demand shifted to more expensive protein options.
According to consumer price indexOver the past year, U.S. beef prices have increased by an average of 1.9%, dairy products by 1.3%, and fresh produce by 1.4%.
Chipotle last raised prices on its national menu in October 2023, Fox Business reported. reported. Prior to that, the chain implemented price hikes in June 2021 and August 2022 to support wage increases, with some entrees increasing in price by more than $1. CBS News.
Despite higher costs, Chipotle said in its third-quarter report that total revenue rose 13% year-over-year to $2.8 billion. The company also outlined plans to expand its store footprint in 2025, with up to 345 new restaurants expected to open, more than 80% of which will have drive-thrus.
