Chipotle to Raise Prices Across California Locations

Fast-casual chain cites rising expenses as reason for 1-2% price hike

Published on Feb. 11, 2026

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Chipotle Mexican Grill, the California-based fast-casual restaurant chain, has announced plans to increase prices at its locations across the state by 1-2% in the coming year. The company cites rising expenses as the primary reason for the price hike, as its total revenue increased 5.4% in 2025 to $11.9 billion, but its comparable restaurant sales were down 1.7% and operating margin dropped from 16.9% to 16.2%.

Why it matters

The price increase at Chipotle locations will impact consumers across California, as the chain has over 4,000 locations worldwide and is a popular dining option. The move highlights the ongoing challenges facing the restaurant industry, including rising costs of goods and labor, that are being passed on to customers.

The details

Chipotle plans to raise prices by 1-2% at its California locations in the next year. The company says the hike is intended to narrow the gap between its rising expenses and the amount it charges customers. While Chipotle's total revenue increased 5.4% in 2025, its comparable restaurant sales were down 1.7% and operating margin dropped from 16.9% to 16.2%.

  • Chipotle plans to raise prices in the next year.

The players

Chipotle Mexican Grill

A California-based fast-casual restaurant chain with over 4,000 locations worldwide.

Scott Boatwright

The CEO of Chipotle Mexican Grill.

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What they’re saying

“We learned that 60 percent of our core users are over $100,000 a year in income, in average household income. That gives us confidence that we can lean into that group in a more meaningful way ... to really drive meaningful transaction performance in the year.”

— Scott Boatwright, CEO (X)

“Pricing was not mentioned and no additional pricing is being taken for this consumer cohort.”

— Chipotle (X)

The takeaway

Chipotle's price hike reflects the ongoing challenges facing the restaurant industry, as rising costs of goods and labor are being passed on to consumers. However, the company's focus on its higher-income customer base suggests it believes it can maintain demand despite the price increase.