Chipotle Mexican Grill is planning to raise prices again.
“For the first time in over a year, we will be taking a modest price increase to offset inflation,” Chipotle Chief Corporate Affairs Officer Laurie Schalow said in a statement to CNBC.
The company did not share how much menu prices will rise as a result of the decision.
After peaking last June, inflation has cooled. Prices for many goods and services are still rising but at a slower rate. The 12-month consumer price index rose 3.7% in August after climbing 8.3% a year earlier, according to the U.S. Bureau of Labor Statistics.
The burrito chain started hiking its menu prices in June 2021, citing the cost of rising wages for its employees. It raised its prices again during the first three months of 2022 and then again in July of that year.
But Chipotle paused its price hikes as some customers pulled back on restaurant spending and ingredient costs stabilized. In April, CEO Brian Niccol said the chain had demonstrated its pricing power but would hold off on raising prices any more. At that time, its prices were up roughly 10% compared to the year-ago period.
Three months later, Niccol said Chipotle would reconsider its pricing as the company’s fourth quarter drew closer.
Chipotle’s stock has risen 30% this year, giving it a market value of $50.1 billion. The company is expected to report its third-quarter earnings Oct. 26.
Insider first reported that Chipotle’s prices are going up again.