Customers order from a Chipotle restaurant on the King of Prussia Mall in King of Prussia, Pennsylvania.
Mark Makela | Reuters
Chipotle Mexican Grill is planning to lift prices again.
“For the primary time in over a 12 months, we can be taking a modest price increase to offset inflation,” Chipotle Chief Corporate Affairs Officer Laurie Schalow said in a press release to CNBC.
The corporate didn’t share how much menu prices will rise because of this of the choice.
After peaking last June, inflation has cooled. Prices for a lot of goods and services are still rising but at a slower rate. The 12-month consumer price index rose 3.7% in August after climbing 8.3% a 12 months earlier, in response to the U.S. Bureau of Labor Statistics.
The burrito chain began mountaineering its menu prices in June 2021, citing the price of rising wages for its employees. It raised its prices again in the course of the first three months of 2022 and however in July of that 12 months.
But Chipotle paused its price hikes as some customers pulled back on restaurant spending and ingredient costs stabilized. In April, CEO Brian Niccol said the chain had demonstrated its pricing power but would hold off on raising prices any more. At the moment, its prices were up roughly 10% in comparison with the year-ago period.
Three months later, Niccol said Chipotle would reconsider its pricing as the corporate’s fourth quarter drew closer.
Chipotle’s stock has risen 30% this 12 months, giving it a market value of $50.1 billion. The corporate is anticipated to report its third-quarter earnings Oct. 26.
Insider first reported that Chipotle’s prices are going up again.
