Chipotle's price hike to hit steak lovers harder

Chipotle's price hike to hit steak lovers harder

Credit: Chopotle Web site

Chipotle's price hike to hit steak lovers harder

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Associated Press

Posted on April 29, 2014 at 11:45 AM

Updated Tuesday, Apr 29 at 12:09 PM

NEW YORK (AP) -- Chipotle's coming price hikes could hit steak lovers particularly hard.

The Mexican food chain said earlier this month that it plans to start charging more for its burritos, bowls and tacos in coming weeks as it faces rising costs for ingredients.

On Tuesday, Chief Financial Officer Jack Hartung noted that the chain doesn't currently charge a whole lot more for its steak filling, even though beef costs have climbed considerably.

Just how much have beef prices gone up?  In 2008 you paid an average of $3.97 for a pound of USDA choice beef.  Last year it jumped to $4.91, and the price now - $5.28 - is the highest we’ve seen since 1987.

Hartung says Chipotle will widen the price gap between steak and chicken.  Compared to this time last year, beef is up 17%

Hartung also says the price hike would be more like 4 percent to 6 percent, or 32 cents to 48 cents assuming the cost of a burrito is $8. In the past, executives had said they were considering a smaller hike.

Chipotle has restaurants in Williamsburg, Norfolk, Chesapeake, Suffolk, Virginia Beach,  Hampton and Newport News.

AP-WF-04-29-14 1529GMT

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