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Chipotle Raises Average Hourly Wage to $15; Plans to Hire 20,000

Chipotle will raise its hourly rate by the end of June as it looks to hire 20,000 more employees for its busy season.
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Chipotle Mexican Grill  (CMG) - Get Chipotle Mexican Grill Inc. Report is raising wages at its restaurants, resulting in a $15 average hourly wage by the end of June as many U.S. companies scramble to attract enough workers.

The fast food restaurant chain also announced it will hire 20,000 extra workers across 200 restaurants in the U.S. to accommodate its peak season traffic. 

"Chipotle is committed to providing industry-leading benefits and accelerated growth opportunities, and we hope to attract even more talent by showcasing the potential income that can be achieved in a few short years," said Marissa Andrada, Chief Diversity, Inclusion and People Officer at Chipotle.

The current average hourly wage at Chipotle is about $13. 

Chipotle has one of the most generous employee benefit programs in the fast food industry, offering a 401(k) plan and tuition reimbursement up to $5,250 annually for employees who have been on the job for a minimum of four months.

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Chipotle shares fell 2.4% Monday on the announcement. Shares continued to fall 0.5% after hours. 

Read More: Jim Cramer Would Buy Chipotle Stock Here

The U.S. economy added far fewer than expected new jobs last month, the Labor Department said Friday.

The Bureau for Labor Statistics said 266,000 new jobs were created last month, with the headline unemployment rate edging slightly higher, to 6.1%. The April report came in far lower than expert expectations of 978,000. 

The BLS also lowered its March jobs addition estimate to 770,000 from 916,000 and noted that hourly wages were up 0.7% on the month, and 0.3% on the year, both figures coming in well ahead of Street forecasts.

Read More: Cramer Doesn't See Economic Slowdown After Jobs Report Disappoints