Chipotle’s burritos, not an Affordable Luxury item… just wait for a few more price increases

Chipotle’s burritos, not an Affordable Luxury item… just wait for a few more price increases

While we love noshing on a Chipotle burrito, the company has boosted prices at more than 20 percent of its locations. With an average burrito price around $8-$9, it’s a modest increase to one’s wallet that may not have a dramatic impact on the Cash-strapped Consumer. It certainly doesn’t mean Chipotle’s burritos are now an Affordable Luxury, but a few more price increases to contend with rising minimum wages and it very well could be.

People are already paying more for their burritos since Chipotle has raised its prices in hundreds of restaurants.The changes took effect in approximately 440 Chipotle locations, which accounts for about 20% of their restaurants, Chipotle spokesperson Chris Arnold said.

The chain has over 2,200 locations altogether.”We had already been on record saying that we were considering raising prices in select markets, and now we have implemented that increase,” Arnold said.

Arnold said prices increased by about 5% in those restaurants and that the increase will help “offset wage and food inflation.”

Source: Chipotle: Price Increase Hits Hundreds of Restaurants | Fortune.com

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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