In a show of confidence on its turnaround, Chipotle (CMG) raised prices by 4 percent to 5 percent in New York City, effective May 1, SunTrust Robinson Humphrey Jake Bartlett wrote on Wednesday.
Chipotle has 58 stores in New York City.
A spokesman for Chipotle, Chris Arnold, said the increase could cost the customer between 25 cents to 30 cents more per entree. "This increase, coupled with a similar increase last month in 442 restaurants, brings to 500 the total number of restaurants that have seen prices increase (out of more than 2,300 restaurants we operate)," he said. "These increases are the first we've taken since 2014 and are intended to offset food and labor inflation we have incurred over that time."
Arnold added that the company has no plans to raise prices nationwide. Early responses on Twitter suggest holding the line on further price increases would be wise.
Chipotle faced e. coli outbreaks at its stores in 2015 and 2016, which sent its stock tumbling.
@BrianSozzi Let's see how that goes then ...— Russ Cavanagh (@russcavanagh) May 10, 2017
oh bye https://t.co/blGD0y466K— christina (@christinatrejo) May 10, 2017
Editors' pick: Originally published May 11.