04-03-2025
- Business
- Wall Street Journal
Chipotle Says It Won't Raise the Price of Guacamole
A Chipotle restaurant in San Francisco. (DAVID PAUL MORRIS/BLOOMBERG NEWS)
Chipotle Mexican Grill, a global buyer of avocados, expects that tariffs imposed on Mexican imports could weigh on its profit margins this year. The company on Monday said it aims to absorb potential cost increases, rather than raising customer prices, because of uncertainty about how long the tariffs could last.
Chipotle said on an investor call last month that its cost of goods could increase by around 0.6% this year if the tariffs on imports from Mexico, Canada and China go into effect. About half of Chipotle's avocados come from Mexico. Chipotle also sources limes and other produce from Mexico. The company in recent years has worked to diversify the sources of its imported goods.
