Chipotle Adjusts Menu Prices to Offset Inflation After Year-Long Pause
Chipotle, the prominent restaurant brand, is increasing menu prices after a period of stability. Laurie Schalow, Chief Corporate Affairs Officer at Chipotle, stated, ‘For the first time in over a year, we will be implementing a modest price increase to offset inflation,’ in a statement to CNBC.
The restaurant chain had paused price increases as the economy improved, consumer spending rebounded, and ingredient costs stabilized. This year, the company’s stock has risen by 30%, reflecting investors’ approval of their strategy to align prices with inflationary pressures.
While consumer goods prices are still rising, the pace is slower than it was in 2021, allowing businesses to adapt more effectively to these price changes.
Goldman Sachs Foresees Earnings Impact in Q3 Due to GreenSky Divestiture
In other news, Goldman Sachs has indicated that their third-quarter earnings may be affected as they work on divesting their fintech lending company, GreenSky.
The deal, which involves a portfolio of loans originated by Goldman, is expected to reduce third-quarter earnings by 19 cents per share, as stated by Goldman. The New York-based bank is set to release its results on Tuesday.
Goldman will continue to operate the company until the first quarter of 2024 when the deal is anticipated to be finalized.
Private equity groups have played significant roles in various asset divestitures in the banking industry this year, including providing funding for the PacWest merger with Banc of California.
The company’s CEO explained that this move reflects their focus on streamlining their services and continuing their commitment to working with consumer-related services, rather than expanding their offerings in multiple directions