Chipotle, Mondelez shares slide as weak demand, rising costs hurt sales view
BNN Bloomberg
Shares of burrito chain Chipotle Mexican Grill fell six per cent and Mondelez International slid three per cent before the bell on Wednesday
Lower‑income households have cut back discretionary spending as they contend with higher prices, delays in food stamp benefits and a cooling labor market.
Several large consumer goods companies such as P&G, Coca‑Cola and PepsiCo have lowered entry price points to help retain budget-sensitive shoppers.
Chipotle, whose burrito bowls start at around US$10.45, plans to raise menu prices by one per cent to two per cent this year and expects flat same-store sales in 2026 as it tries to cushion the impact of surging beef costs, its largest commodity expense.
“The top-line guide was a disappointment and we think also speaks to the idea that underlying restaurant industry demand has not gotten better, at least not yet,” Piper Sandler analysts said.
Chipotle warned in October that consumer spending would remain pressured through early 2026, noting a pullback among U.S. households earning less than $100,000 a year, a group that accounts for about 40 per cent of its sales.
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The United Arab Emirates briefly closed and then reopened its airspace Tuesday, temporarily halting flights in a crucial travel hub, as the country’s military said it was facing incoming attacks from Iran.
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Warner Bros emerged as the biggest winner at the Academy Awards on Sunday, though the mood was clouded by its pending US$110 billion sale to Paramount Skydance, a deal reshaping Hollywood’s studio landscape.
Every day more than $4 billion worth of goods cross the United States’ borders with Canada and Mexico – U.S. auto parts headed for car factories in northern Mexico, cartons of Mexican avocados bound for California supermarkets, Canadian aluminum destined to become cans of Campbell Soup.
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