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Chipotle Is Raising Its Prices For The First Time In Years

Hayley PetersonApr 17, 2014, 22:58 IST

Michael Saechang/flickr

Chipotle is raising its prices for the first time in three years following a surge in beef and avocado prices.

The burrito chain will start increasing prices by mid-single-digits by the end of the quarter, Jack Hartung, Chipotle's chief financial officer, said in a call with analysts Thursday.

A 5% increase would raise the cost of Chipotle's chicken burrito from $7.81 to about $8.20 in New York.

Chipotle reported Thursday that first-quarter earnings rose 8.5%, but food costs were 34.5% of revenue, up from 33% a year ago.

Chipotle CEO Steve Ells warned of a potential price increase in October.