Chipotle's carnitas crisis won't be over for months
Earlier this year, Chipotle stopped serving pork at hundreds of locations after the company found that suppliers weren't meeting its standards.
The brand says that it will be months before carnitas are available at all locations.
Chipotle founder and CEO Steve Ells told investors there is "very little supply cushion" for pork that meets the company's standards.
The company demands that its suppliers give pigs access to the outdoors, rather than raising them in cramped pens.
Ells said that Chipotle has found a new supplier and will start replenishing the carnitas supply this summer.
If all goes according to plan, Chipotle will have a full carnitas supply in the fourth quarter.
Beef prices are also continuing to squeeze Chipotle's profit margins.
Steak and barbacoa burritos cost the company $1 more to make than alternatives like chicken or vegetarian, executives told investors during an earnings conference call.
Global droughts have led to a shortage of beef. Chipotle has started serving conventionally-raised steak in some markets to meet demand.
Consumers do eat some of that $1 cost. A steak or barbacoa burrito costs about 69 cents more in New York City. In cheaper markets like Ohio and Texas, customers pay about 40 cents more.
Chipotle executives said it could raise prices of beef items this summer if the shortage continues.
The burrito chain says that last time they raised prices on steak and barbacoa, they didn't see customers trade down to cheaper options.
The company prides itself on serving "food with integrity." This means antibiotic-free, naturally raised meats and local produce.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Foreign tourist arrivals in India will cross pre-pandemic level in 2024
- Upcoming smartphones launching in India in May 2024
- Markets rebound in early trade amid global rally, buying in ICICI Bank and Reliance
- Women in Leadership
- Rupee declines 5 paise to 83.43 against US dollar in early trade
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market