KeyBanc says Chipotle raises prices in California, margin impact to be determined

KeyBanc says that based on the firm’s proprietary scrape of Chipotle’s digital menu, the company appears to have raised prices in the majority of its location sin California, commensurate with AB1228 taking effect this week, which raised the minimum wage for fast food workers to $20/hour. According to KeyBanc’s data, Chipotle raised menu prices in 303 of its 476 active stores in the state. Chipotle has been known to phase price increases in over a period of several days, which may mean the remaining 73 units could see a change in the days ahead, the firm says. But unlike previous actions, the magnitude varies considerably by location and all proteins saw the same increase on a dollar basis, which ranged between 25c and $1.50 for carryout orders and between 35c and $1.95 for delivery orders. Margin impact is to be determined by remaining stores, KeyBanc adds.