Higher menu prices have helped offset rising food costs for Chipotle Mexican Grill, and customers have shown no pushback when asked to pay more, chain officials said Thursday.
The Denver-based fast-casual chain reported a 25-percent boost in profits for the quarter.
In a call with analysts following the report, Chipotle founder and co-chief executive Steve Ells said of the 11.3-percent increase in same-store sales during the quarter that about 4.6 percent was attributable to menu price increases. The remainder was the result of increased traffic.
John Hartung, Chipotle’s chief financial officer, said customers showed “no noticeable resistance” to menu price increases, either in average check or transaction trends.
The pricing efforts helped offset higher food costs, especially for avocados, chicken and beef, as well as cheese and sour cream. Food costs are expected to improve slightly for the fourth quarter, but continue to rise into next year, officials said.
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