From CNBC: 2025-02-04 17:48:02

Chipotle Mexican Grill does not anticipate significant cost increases if tariffs on Mexican imports are implemented, as only half of its avocados come from Mexico. President Trump paused plans for tariffs on Mexican and Canadian imports, which could raise costs for restaurants. Chipotle expects a 60 basis point increase in cost of sales if tariffs go into effect for Mexico, Canada, and China, sourcing only 2% of its sales from Mexico. Despite Mexico supplying 90% of U.S. avocados, Chipotle buys half of its supply from other countries. Chipotle has shown pricing power with 5.4% same-store sales growth in Q4, but a cautious outlook led to a 5% drop in shares.



Read more at CNBC:: Trump tariffs may raise avocado costs