Chipotle’s Burritos Have Gotten Expensive—and the Stock Market Is Getting Worried

Chipotle Mexican Holding third-quarter sales were good, and earnings were even better. Targets for the year ahead look solid as well but Chipotle stock closed down 6.8%. Clearly, something was worrying investors.

That something is the price increases across the menu that have been driving sales growth and earnings. Average prices rose 13% in the latest quarter over the same period last year. That pace was higher than the roughly 12.5% and 10.5% price gains in the second and first quarters, respectively, from the corresponding quarters in 2021.

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