Chipotle is raising its prices in the U.S. by 2% to help offset inflation and fulfill its commitment to increasing portion sizes. Laurie Schalow, the company’s chief corporate affairs officer, confirmed the price hike on Friday, noting that this is the first time in over a year that the California-based chain has raised its prices.
The announcement follows an analyst report from Truist Securities, which highlighted a 2% price increase at around 20% of Chipotle’s 3,500 U.S. locations. Truist also raised its price target for Chipotle’s stock and reported an uptick in customer traffic at the chain’s restaurants in November.
Chipotle had previously stated in October that its food, beverage, and packaging costs all rose during the third quarter, citing higher costs for items like avocados as an example.
In June, avocado shipments from Mexico to the U.S. were temporarily halted after two U.S. Department of Agriculture employees were assaulted and briefly held by attackers in the Mexican state of Michoacán.
Chipotle also pointed to the rising costs of maintaining “consistent and generous portions” for its customers. In July, former Chairman and CEO Brian Niccol revealed that the company was retraining staff at around 10% of its locations after social media complaints from customers about receiving smaller portions.
Brian Niccol left Chipotle in September to become the chairman and CEO of Starbucks, which has stated that it will not raise its prices until at least September 2025.
Restaurant price inflation has been a growing concern for U.S. consumers. Government data shows that the cost of dining out increased by 30% from October 2019 to October 2024, while the cost of food prepared at home rose by 27% during the same period.
Earlier this year, McDonald’s reported a shift in consumer behavior, with more customers opting to eat at home instead of purchasing fast food due to rising prices. In response, the company introduced a $5 meal deal and other discounts to attract customers.