Chipotle Mexican Grill (NYSE: CMG) plans to keep menu prices constant in the face of President Donald Trump’s 25% tariffs on imports from Mexico and Canada, Chief Executive Scott Boatwright told NBC News.
“It is our intent as we sit here today to absorb those costs,” Boatwright told anchor Hallie Jackson. The tariffs were imposed early on March 4.
Boatwright was appointed CEO permanently in November after serving as interim when Brian Niccol departed to lead Starbucks. He was previously the Newport Beach chain’s chief operating officer.
The executive noted that Chipotle has no plans to raise menu prices to offset the elevated costs unless they become a “significant headwind.”
Boatwright said on a February earnings call that about 50% of Chipotle’s avocado supply comes from Mexico while also sourcing from Colombia, Peru and the Dominican Republic.
“We don’t think it’s fair to the consumer to pass those costs off to the consumer, because pricing becomes permanent,” he said. “And so again, back to the idea of delivering extraordinary value to the consumer. We’re going to stay the course.”
Chipotle shares were down 2.5% at $52.95 during midday trading with a market cap of $72 billion.
