Chipotle May Need To Raise Prices When $20/Hour CA Wage Begins
Portfolio Pulse from Benzinga Newsdesk
Chipotle Mexican Grill Inc. may need to increase its prices when California's $20 per hour minimum wage law comes into effect. The company is considering various strategies to offset the increased labor costs.
September 19, 2023 | 3:26 pm
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Chipotle's potential price increase due to California's new minimum wage law could impact its profitability and stock price.
The new minimum wage law in California will increase Chipotle's labor costs. To offset this, the company may raise its prices, which could impact its profitability and, consequently, its stock price. The degree of impact will depend on how well the price increase is received by customers and how much it affects sales volume.
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