CMG image

Chipotle Mexican Grill, Inc. (CMG) Follows Through On Promised Price Hikes

CMG – Chipotle has officially rolled out price increases to all of its locations.


Chipotle Mexican Grill, Inc. (NYSE:CMG) may be struggling to reignite restaurant traffic growth, but that’s not stopping the burrito chain from raising prices.

As CNBC reports, the company has now rolled out menu price hikes to all of its remaining stores:

The burrito chain bumped up prices by 5 to 7 percent this week in markets that did not already see increases in 2017, company spokesman Chris Arnold confirmed Wednesday.

Arnold said this is the last phase of Chipotle’s planned price increase and is a response to rising inflation in food and labor costs.

Baird analyst David Tarantino said this latest round of price increases covers the remaining 45 percent of Chipotle locations that were not affected by price hikes in April and November of last year.

Chipotle essentially tested consumers’ willingness to accept higher prices last year in the initial rollout phase. After computing that the higher prices didn’t seem to affect store traffic too much, it went ahead with the price hikes across its entire store base.

Designed to pad restaurant margins amid rising labor costs, it marks the first time Chipotle has raised prices since the middle of 2014.

Chipotle Mexican Grill, Inc. shares rose $5.47 (+1.62%) in premarket trading Friday. Year-to-date, CMG has gained 16.78%, versus a 4.60% rise in the benchmark S&P 500 index during the same period.

CMG currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #31 of 50 stocks in the Restaurants category.

Try StockNews.com Premium Today!


Get access to our daily newsletters, Best Stocks List, POWR Ratings, and much more!
Free for 14 days -- no credit card required!

Sign Up Now

CMG at a Glance

CMG Current POWR Rating™
Overall POWR Rating™
CMG Current Price $484.66 0.17%
More CMG Ratings, Data, and News

CMG Price Reaction

The day of this event (Jan. 19, 2018)
CMG Closing Price$343.87 1.88%
CMG Volume1,152,900
0.04% from avg
Leading up to this event
CMG 1-mo return7.78%
After this event
CMG 1-day return2.28%
CMG 3-day return2.43%
CMG 5-day return2.21%

CMG Price Chart



More Chipotle Mexican Grill, Inc. Common Stock (CMG) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CMG News
Page generated in 1.2363 seconds.