Chipotle CFO: No Price Increases Planned Amid Tariff Concerns
Chipotle CFO Adam Rymer assures customers that the company is closely monitoring the evolving tariff situation and has no plans for immediate price increases. Despite the 25% tariff on Mexican and Canadian imports and the 10% tariff on Chinese goods, Chipotle intends to absorb these costs for the foreseeable future.
While only 2% of Chipotle's cost of sales originates from Mexico, which includes avocados, tomatoes, limes, and peppers, the company has diversified its supply chain to mitigate potential risks. Rymer emphasized that Chipotle would only consider price increases if tariffs become permanent and impact margins.
Recent financial results show that Chipotle posted a 5.4% same-store sales growth in Q4 and 7.4% for fiscal 2024. Value remains a central strategy, with the company offering a significant discount compared to competitors' food.
Chipotle raised prices by 2% in December, and analysts believe that the company's 2025 same-store sales could benefit by 200 basis points if no additional price hikes are implemented.
Chipotle remains committed to maintaining its value proposition and will continue to monitor the tariff situation and adjust its strategy as needed.