Get ready to pay more at Chipotle
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- Chipotle is considering raising prices due to the rising cost of avocados, queso, and sour cream.
- New CFO Adam Rymer aims to keep menu items affordable despite cost pressures, the Wall Street Journal reported.
- Chipotle's sales rose 6% last quarter, showing resilience amid fast food price hikes.
Chipotle's new chief finance officer is eager to keep menu items affordable for cash-strapped customers, but has warned that prices could rise as the cost of raw materials keeps going up.
Executives at the Mexican grill chain are contemplating raising prices further as costs have risen for avocados, queso, and sour cream, according to a Wall Street Journal report.
Chipotle has not yet decided when any price increase might kick in, or how significant the rise would be, the Journal reported.
Adam Rymer started as finance chief at Chipotle in October. In his 15 years at the company, he has held various roles, including vice president of finance and compensation analyst.
Rymer was initially due to become CFO in January but instead took the position three months early after previous Chipotle boss Brian Niccol exited in August to become CEO of Starbucks. Niccol was replaced in the interim by Scott Boatwright, who served as chief operating officer beforehand.
Despite the potential for higher menu prices, Chipotle remains a better value option for customers than similar alternatives, Rymer said, per the Journal.
Inflation has not been kind to fast food prices.
Starbucks, McDonald's, KFC, In-N-Out, and Olive Garden are among the chains that have increased prices due to the soaring cost of labor and commodities.
Unlike some fast food firms, whose sales have taken a tumble as customers have cut back, Chipotle has shown resilience.
In its most recent quarter, the company's same-store sales rose 6% compared to the same period last year. Revenue grew 13% to $2.8 billion year over year.
Chipotle did not immediately respond to a request for comment from Business Insider, made outside regular working hours.