Chipotle Stock Climbs As Menu Prices Increase | Global News Avenue

Your burritos may get a little more expensive.

Chipotle Mexican BBQ (CMGThe company said Wednesday it was raising prices across the United States. “For the first time in more than a year, we are raising prices nationwide slightly by about 2% to offset inflation.” Chipotle Chief Corporate Affairs Officer Laurie Schalow said in an email to us Investment Encyclopedia.

new Chief Executive Officer (CEO) Scott BoatrightPromoted to the top job last month in company’s latest report Earnings Conference Call October said “nothing is planned today, but that’s not to say we won’t consider pricing action at some point in the future.” A wall street journal Last week’s article mentioned the possibility of Chipotle price increases.

Chipotle shares rise on news of price increase

Chipotle shares have recently risen more than 4% and are up nearly 40% so far this year.

Analysts at Truist Securities wrote on Wednesday that “the menu price increases are earlier than we expected,” which “we believe is positive for the stock.” “We believe China Merchants Group is considering menu prices from a strength perspective.” Analysts see things differently price target Shares rose $2 to $74, just above the Wall Street average of $68, according to Visible Alpha data.

The stock was changing hands Wednesday afternoon at just under $64.

The impact of the higher menu prices will likely be felt in the company’s fourth-quarter financial results, which are scheduled to be released in early February.