The Most Important Thing To realise About Chipotle's Price Hikes


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Yesterday we mentioned how inflation is coming to Chipotle, thanks to higher food prices, which is being translated into price hikes in 80% of stores.But there’s one key bit we didn’t mention, which was caught by BofA:

Chipotle began to implement a 4.5% menu price increase in late June with rollout expected to be competed in August. This is the first significant national price increase since late 2008. The company reports little to no initial resistance to the higher pricing. Prices were raised by 4.5% in the Pacific region in March and there has been little to no resistance in those markets. Higher pricing should firm up sales and margins in the second half.

A 4.5% price hike with no resistance? Huge.

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