Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

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

by admin February 7, 2025
February 7, 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
U.S. lawmakers move to ban China’s DeepSeek from government devices
next post
New US Interior Secretary Moves to Expand Alaska Energy Development

Related Posts

GM lays off 1,000 employees amid reorganization and...

November 17, 2024

GM CEO says commitment to all-electric fleet remains...

June 7, 2024

Lego is reinventing its iconic brick sets and...

December 25, 2024

OpenAI in talks to pay about $3 billion...

April 17, 2025

With Trump digital coins, billions of dollars —...

January 23, 2025

Digital health companies got pummeled by Wall Street...

December 26, 2024

Wayfair to open its first large store, as...

May 18, 2024

Gas prices are rising. Here’s how to stretch...

July 9, 2024

Maker of Hershey’s, Jeni’s, and Friendly’s ice cream...

June 27, 2024

Macy’s turnaround hinges on revamping some stores and...

March 7, 2025

    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.

    Recent

    • Market Maker Manipulation; Oops, They Did It Again!

      May 14, 2025
    • 50% of S&P 500 Stocks Just Turned Bullish – What Happens Next?

      May 14, 2025
    • Bullish Breadth Improvement Suggests Further Upside For Stocks

      May 14, 2025
    • Tariff Tensions Ease, Nasdaq Soars — But is SMH the Emerging Leader?

      May 14, 2025
    • Lawsuit tracker: New resistance battling Trump’s second term through onslaught of lawsuits taking aim at EOs

      May 14, 2025

    Categories

    • Business (926)
    • Investing (2,165)
    • Politics (2,682)
    • Stocks (1,008)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.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 © 2025 sportinvestorsleague.com | All Rights Reserved