Unique Crypto Strategies
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

Unique Crypto Strategies

Business

Chipotle downplays looming Trump tariffs, says only half of its avocados are from Mexico

by February 6, 2025
February 6, 2025
Chipotle downplays looming Trump tariffs, says only half of its avocados are from Mexico

Chipotle Mexican Grill said Tuesday that it does not expect costs to rise much if tariffs on key imported ingredients go into effect next month, noting that only about half of its avocados come from Mexico.

A day earlier, President Donald Trump paused his plans for 25% tariffs on Mexican and Canadian imports. If implemented after the one-month suspension, imports such as avocados and beef would be more expensive for restaurants, which would likely try to pass on the increased cost to their diners.

But Chipotle executives shook off the tariff fears during the company’s earnings conference call on Tuesday. If tariffs aimed at Mexico, Canada and China all go into effect, Chipotle expects that its cost of sales would rise about 60 basis points, or 0.6 percentage points, according to Chief Financial Officer Adam Rymer.

Chipotle only sources about 2% of its sales from Mexico, importing produce such as avocados, tomatoes, limes and peppers, Rymer said.

In fact, while Mexico supplies roughly 90% of the avocados eaten in the U.S., Chipotle buys about half of its avocado supply from Colombia, Peru and the Dominican Republic, according to CEO Scott Boatwright. In recent years, Chipotle has taken steps to buy more of its avocados outside of Mexico, he told analysts.

Looking beyond Chipotle’s guacamole supply, less than 0.5% of Chipotle’s sales are sourced from Canada and China. Trump has already imposed a 10% tariff on Chinese imports.

In recent quarters, Chipotle has shown that it has pricing power, even as diners become more value-conscious.

For the fourth quarter, the company reported same-store sales growth of 5.4%, fueled by a traffic increase of 4%. Chipotle’s earnings topped Wall Street estimates, but a conservative forecast for its same-store sales growth sent shares down 5% in extended trading.

The outlook did not include the effect of any tariffs.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
DAVID MARCUS: Camping out with Democrat dimwits
next post
Reported Swedish shooter lived as recluse in quiet apartment block

You may also like

Klarna, nearing IPO, plucks lucrative Walmart fintech partnership...

Donatella Versace steps down as head of Italian...

RTX, GE Aerospace expect more than $1 billion...

Krispy Kreme stock plunges after doughnut chain pauses...

Comcast announces plan to spin off cable channels,...

American Express to pay $230 million to settle...

Starbucks announces several changes, including plans to cut...

UnitedHealth CEO says U.S. health system ‘needs to...

JPMorgan Chase CEO Jamie Dimon on Trump tariffs: ‘Get...

Mattel says Barbies and Hot Wheels could soon...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Sycamore Gap: Two men convicted of felling one of UK’s most famous...

    • Putin, Xi and friendly world leaders celebrate Russia’s Victory Day at Moscow Parade

    • Ellen Miles is planting seeds of hope through guerrilla gardening

    • US Policy Momentum, Clinical Progress Fueling Psychedelics Market in 2025

    • China has spent billions developing military tech. Conflict between India and Pakistan could be its first major test

    Categories

    • Business (439)
    • Investing (2,068)
    • Politics (3,419)
    • Uncategorized (1)
    • World (2,184)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: uniquecryptostrategies.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 uniquecryptostrategies.com | All Rights Reserved


    Back To Top