June 3, 2019
(Reuters) – Chipotle Mexican Grill Inc could cover the cost of President Donald Trump’s proposed tariffs on Mexican imports by raising burrito prices by around 5 cents for customers, it said on Monday.
The Mexican-themed restaurant chain said costs could go up by about $15 million in 2019 and reduce its margins by 20-30 basis points if the tariffs suggested by Trump are enacted, Chief Financial Officer Jack Hartung said in an emailed statement to Reuters.
Trump said last Thursday the United States would impose a 5% tariff on all goods coming from Mexico unless the flow of illegal immigrants across the United States’ southern U.S. border.
“We could also consider passing on these costs through a modest price increase, such as about a nickel on a burrito,” Hartung said.
(Reporting by Uday Sampath in Bengaluru; editing by Patrick Graham)