Yes, Chipotle is raising menu prices again: Here's why

(NEXSTAR) -- You're not imagining things; that burrito bowl just got a little more expensive. Chipotle Mexican Grill recently confirmed it has raised menu prices across the country.

"For the first time in over a year, we have taken a modest price increase of approximately 2% nationally to offset inflation," Laurie Schalow, Chipotle's chief corporate affairs officer, said in a statement obtained by Nexstar.

The slight price hike comes as the fast casual chain grapples with rising costs for key ingredients.

In its third-quarter financial report, Chipotle noted that food, beverage and packaging costs rose to 30.6% of its total revenue, up from 29.7% the previous year. The increase was driven by inflation on ingredients like avocados and dairy and efforts to ensure consistent portion sizes.

Additionally, the company said the popularity of its limited-time smoked brisket added to ingredient costs as demand shifted toward a more expensive protein option.

According to the Consumer Price Index, beef prices increased in the U.S. by an average of 1.9% over the past year, while dairy rose by 1.3% and fresh produce went up by 1.4%.

Chipotle last raised nationwide menu prices in October 2023, Fox Business reported. Prior to that, the chain implemented price hikes in June 2021 to support wage increases and in August 2022, when some entrees rose by over $1, according to CBS News.

Despite the rising costs, Chipotle said in its third-quarter report that total revenue grew by 13% year-over-year, reaching $2.8 billion. The company also outlined plans to expand its footprint in 2025, with up to 345 new restaurants expected to open, over 80% of which will have a drive-thru.