What Chipotle Mexican Grill, Inc. told the SEC could break it.

Chipotle's ingredient costs (beef, avocados, produce) fluctuate due to limited sources, weather/climate, animal disease outbreaks, food safety concerns, and geopolitical conflicts — factors beyond its control.

“The prices for some of our ingredients, such as beef, avocados and other produce fluctuate due to factors beyond our control, such as limited sources, seasonal shifts, climate conditions or inclement weather, natural disasters, inflation, military and geopolitical conflicts and industry demand, including as a result of animal disease outbreaks, international commodity markets, food safety concerns, product recalls and government regulation.”

Tariffs enacted in 2025 added 0.2% to 2025 cost of sales and are estimated to raise food, beverage and packaging costs by ~15 bps on an ongoing basis; Chipotle sources avocados, tomatoes, beef, pork, limes, peppers and spices from Mexico, Canada and China.

“These decreases were partially offset by 0.4% of inflation, primarily beef and chicken, and a 0.2% impact from tariffs enacted in 2025. We estimate that the tariffs enacted in 2025 will impact food, beverage and packaging costs by about 15 basis points on an ongoing basis.”

Certain key Chipotle ingredients are purchased from a small number of suppliers; the company is actively trying to add suppliers to reduce reliance and avoid supply shortages.

“We have also sought to increase the number of suppliers for our ingredients to help mitigate pricing volatility and reduce our reliance on one or several suppliers, which could create supply shortages. In addition, we closely monitor industry news, trade tariffs, weather, exchange rates, foreign demand, geopolitical crises and other world events that may affect our ingredient prices or available supply. Certain key ingredients are purchased from a small number of suppliers.”