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CMG
Benzinga
169 days

Chipotle Ready To Eat Tariff Costs, Won't Charge Customers More: 'We Don't Think It's Fair To The Consumer'

1. CMG may face increased costs from 25% tariffs on Mexican imports. 2. CEO Scott Boatwright will not pass increased costs onto consumers. 3. Tariffs could raise Chipotle's goods cost by 0.6% on a rolling basis. 4. Chipotle's economic model may withstand inflationary pressures effectively. 5. Stock market reactions suggest tariffs could weigh down investor sentiment.

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FAQ

Why Bearish?

The new tariffs could significantly increase costs for CMG, impacting margins. Historical examples show that cost absorption often leads to investor concern as profits shrink.

How important is it?

The tariffs directly affect CMG’s cost structure and could dampen profitability, impacting stock price.

Why Long Term?

The full effects of inflation and cost increases will stretch over 2025 and beyond, affecting pricing strategy.

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