Latest news with #Mexic
Yahoo
6 days ago
- Politics
- Yahoo
Mexican Supreme Court remake: Ruling-party loyalists dominate the new bench
Judicial candidates closely linked to Mexico's ruling party have swept every position on the nation's newly transformed Supreme Court, according to final results released Wednesday from the controversial judicial vote. The nine incoming justices on the high court have strong ties to the dominant Morena bloc headed by President Claudia Sheinbaum, and their election signals a radical shift in Mexico's balance of power. Among them is a new chief justice, Hugo Aguilar, who would become the country's first top jurist of Indigenous origin since the legendary Benito Juárez, who also served as president, more than a century and a half ago. Electoral regulators still must validate the vote, though that is viewed as a formality. The Supreme Court justices, along with almost 900 other newly elected federal jurists, are scheduled to take office Sept. 1. Mexican authorities have been tallying the results from Sunday's controversial national balloting — championed by Morena — in which only 13% of eligible voters went to the polls. Despite the paltry turnout, Sheinbaum has lauded the election as "marvelous" and "a great success." She has hailed the replacement of the entire federal judiciary as a victory of democracy over corruption and nepotism. Read more: Sheinbaum calls Mexico's judicial election 'extraordinary' despite turnout of less than 13% The president has been especially effusive about the likely emergence of a chief justice from one of Mexico's long-marginalized Indigenous communities. "It's a profound change," she said. Indigenous Mexicans, comprising about 10% of the population, have long been among the country's poorest residents and are often subject to racism. Some detractors have mocked the desire of Aguilar to don Indigenous dress instead of the traditional black robes. Sheinbaum said she supports his effort to honor his cultural roots. Mexico has became the first country worldwide to elect all of its judges, from Supreme Court justices down to thousands of local magistrates. Many independent observers have assailed the exercise as a triumph of politics over justice — and a potentially fatal blow for the separation of powers, a crucial pillar of democratic rule. "This is a setback for democracy in Mexico," said Stephanie Brewer, who heads the Mexico analysis section of the Washington Office on Latin America, a human rights research group. "When you have concentration of power over all three branches of government, you start to erode democratic rule." Sheinbaum's Morena party already has super-majorities in the Mexican Congress and dominates many state and local governments. Coparmex, a Mexican business group, said it had detected "multiple irregularities" in the vote and declared that the new judiciary could hamper investment in Mexico, the United States' leading trading partner. "Without independent justice, there is no sustainable investment," Coparmex said in a statement. "Mexico cannot aspire to progress without legality." Read more: Mexico judicial elections: Government calls it essential reform. Critics say it's a farce The revamped Supreme Court will have nine judges, compared to 11 in the current high court. The Supreme Court will also have reduced ability to challenge congressional and presidential actions. Sheinbaum has dismissed much of the the criticism of the election as "classism and racism," and has celebrated the rise of Aguilar, the apparent chief justice-elect, who hails from the Mixtec ethnic group in southern Oaxaca state. She accused opponents of fomenting "hate." Aguilar, who currently oversees human rights affairs for the government's National Institute of Indigenous Peoples, garnered 6 million votes, more than any other Supreme Court contender, results showed. Second highest in Supreme Court balloting was Lenia Batres Guardarrama, 5.7 million votes. From humble origins, Aguilar has said that a desire to defend Indigenous rights inspired him to study law. He has been widely praised for his legal acumen and dedication to the poor. "Hugo seems to be a brilliant lawyer," said Joaquín Galván, a human rights attorney in Oaxaca state. "But I would advise against idealizing him like he is the new Benito Juárez, or to say that—just because he is Indigenous—he cannot be criticized." Some critics have also accused Aguilar of selling out to win Indigenous support for controversial development projects promoted by former President Andrés Manuel López Obrador, notably the $25-billion Maya Train, which some Indigenous groups resisted as destructive of the environment and of native communities. "Without doubt Aguilar has been a promoter and defender of the government of Morena," Galván said. Among the other candidates leading in the voting for seats on the Supreme Court are three sitting justices appointed by López Obrador, who founded Morena, and was Sheinbaum's mentor. Those three are: Batres, Yasim Esquivel and Loretta Ortiz. By law, the new court will be composed of five women and four men. For years, López Obrador battled with the country's Supreme Court about a number of contentious issues, notably his plan to overhaul the nation's electoral system. Nearing the end of his six-year term, he championed the controversial reform that led to Sunday's judicial overhaul. Special correspondent Cecilia Sánchez Vidal contributed. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Yahoo
23-04-2025
- Business
- Yahoo
Chipotle CEO says chain has no plans to raise prices amid consumer pullback
Chipotle (CMG) won't raise the prices of chicken burritos or guac and chips as it tries to navigate fragile consumer sentiment and a trade war. The burrito chain missed expectations on revenue and same-store sales in its first quarter report on Wednesday after market close. It posted its first decline in same-store sales since 2020, while transactions decreased 2.3%, the largest drop since 2022. In an interview with Yahoo Finance, CEO Scott Boatwright said the company does not plan to raise prices "anytime in the near future," given the state of the consumer. He explained the company needs to see which components of the tariffs "will be transitory, which will be permanent, and we'll take a pricing action when it's right and appropriate." The company has to evaluate the full impact before deciding if they're a permanent hit to the business. However, if need be, Chipotle "absolutely" has the power to adjust prices. "We have pricing power at Chipotle that I believe is unparalleled, and we view that pricing power as an asset ... we can choose to spend that asset when we want to. Given the strength of our balance sheet and the strength of our economic model, that gives us the opportunity to be patient," Boatwright said. As tariffs reignited concerns for inflation, investors have been dumping shares of fast-casual chains for fast food giants, a reversal of recent trends. Year to date, fast-casual stocks like Chipotle, Sweetgreen (SG), and CAVA (CAVA) are down 19%, 42%, and 23%, respectively. Shares of McDonald's (MCD) and Yum! Brands (YUM) are up nearly 10% and 9%, respectively. Chipotle stock dropped 2% in after-hours trading. Investors are weighing potential risks like exposure to avocado costs, ongoing wage inflation pressure (including from fast food minimum wage laws like the FAST Act), intense competition, and "economic sensitivity," per William Blair analyst Sharon Zackfia. Inflation-weary diners have already been turning to lower-cost options. According to KPMG's March consumer pulse survey, 26% of respondents visited fast food and quick service restaurants more often over the past year, whereas 38% were choosing casual dining less often. When asked about Chipotle's value proposition, Boatwright said the average cost of a chicken burrito or bowl is still under $10 nationally. "We are a 10% to 20% discount to QSR today, and oftentimes a 10% to 20% discount to our fast casual peer group," he said, adding that consumers are still splurging on sides like queso or chips. CFO Adam Rymer said on Chipotle's earnings call that "dinner has been holding up better than lunch recently." There are currently 27 Buys, nine Holds, and zero Sell ratings on Chipotle's stock. Analysts have cited improved throughput and value as potential drivers of growth. The immediate impact of tariffs on food costs may be muted. Only 2% of Chipotle's total sales come from Mexico, which includes about 50% of its avocados, plus tomatoes, limes, and peppers, per the company. Mexican tomatoes, which likely make up 1% of Chipotle's cost of goods, per TD Cowen analyst Andrew Charles, would be subject to a 21% tariff starting July 14. Boatwright said the impact on tomatoes would be small and "something we can absorb if those tariffs go into place." He noted the company could raise menu prices later if consumer sentiments recover. But before they increase prices, they could "look for other offsets within the P and L to offset some of those margin impacts." The company expects to see commodity inflation and labor inflation increase by low single digits this year. The former high-flying stock will need to keep expanding to satisfy investor appetite. This year, it plans to open between 315 and 345 locations, with a goal of 7,000 in the US and Canada long term. There are currently 3,700 locations. Boatwright said it will forge ahead with unit growth. "As we dig into specifically what's going on with the Chipotle consumer ... we're not seeing a loss of customers. What we are seeing is a convenience challenge, meaning we need to build more restaurants as quickly as we can to get to our 7,000 restaurants in North America," he said. Baird analyst David Tarantino said a potential risk is its "aggressive growth strategy," which "requires Chipotle to execute an active development schedule while managing existing operations." He added that "consistent performance depends on finding suitable locations and quality staff." — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy
