Chipotle CEO Says Company Will Absorb Any Cost Increases From Tariffs
For now, Chipotle intends to keep costs constant for consumers despite potential tariff-related increases in its cost of goods. The burrito chain's CEO, Scott Boatwright, has stated that the company is "fortunate" to have an economic model that can withstand inflationary pressures without passing costs on to customers. This approach aims to maintain pricing stability and deliver value to consumers.
- The emphasis on absorbing costs suggests that Chipotle is prioritizing long-term loyalty over short-term profits, which could be a strategic move to build brand affinity in a competitive market.
- Will this approach ultimately lead to higher prices or revenue for the company, and how will it impact consumer behavior and demand for Chipotle's products?