Chipotle Could Face $15 Million In Costs If Mexico Tariffs Enacted
Employees prepare orders for customers at a Chipotle Mexican Grill Inc. restaurant in California.
Photographer: Patrick T. FallonThis article is for subscribers only.
Chipotle Mexican Grill Inc. could face about $15 million in costs this year if the U.S. carries out proposed tariffs on goods from Mexico. The U.S. restaurant chain gets avocados from south of the border.
“If the tariffs become permanent, we would look to offset these costs through other margin improvement efforts already underway,” Chief Financial Officer Jack Hartung said in an emailed statement. “We could also consider passing on these costs through a modest price increase, such as about a nickel on a burrito, which would cover the increased cost without impacting our strong value proposition.”