Fans of Chipotle Mexican Grill (CMG) should prepare to pay more for their favorite dishes later this year.
During a conference call discussing Chipotle’s recent quarterly earnings, Chipotle executives would not confirm reports that Chipotle will hike menu prices by between 3% and 5%. Chipotle officials concede that they are facing higher costs for key ingredients, including avocados. Any price increases at Chipotle are expected to occur in the second half of the year, the Associated Press notes.
Chipotle executives noted that the company would have to carefully weigh the possible impact of higher prices on sales when making the decision to raise prices.
During the last year, sales at its restaurants open more than 12 months grew 9.3% year-over-year.
Chipotle reported fourth-quarter earnings and sales that topped analysts’ estimates, sending CMG stock surging more than 13% in Friday morning trading.