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Chipotle is raising prices again

Apr 22, 2015, 02:40 IST

Chipotle will raise prices this year.

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The company will start charging more for barbacoa and steak later this year by about 4%.

That means that a steak burrito that currently costs $6.65 would cost $6.92.

Chipotle raised prices last year, citing dairy and avocado costs.

Steak and barbacoa burritos cost the company $1 more to make than alternatives like chicken or vegetarian, executives told investors.

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Global droughts have led to a shortage of beef. Chipotle has started serving conventionally-raised steak in some markets to meet demand.

Consumers do eat some of that $1 cost. A steak or barbacoa burrito costs about 69 cents more in New York City. In cheaper markets like Ohio and Texas, customers pay about 40 cents more.

The company is also working to replenish carnitas in restaurants after issues with a supplier let to a shortage.

Chicken is Chipotle's most popular meat.

NOW WATCH: 9 things you didn't know about Chipotle

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