{"id":129891,"date":"2021-06-23T19:55:11","date_gmt":"2021-06-23T19:55:11","guid":{"rendered":"https:\/\/precoinnews.com\/?p=129891"},"modified":"2021-06-23T19:55:11","modified_gmt":"2021-06-23T19:55:11","slug":"falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/","title":{"rendered":"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says"},"content":{"rendered":"<ul>\n<li>The Hass Avocado Board is forecasting a 5.8% decline in avocado shipments during the third quarter compared with last year.<\/li>\n<li>Truist analyst Jake Bartlett wrote in a note to clients that fewer avocado shipments could put pressure on Chipotle&#x27;s margins.<\/li>\n<li>He is forecasting that a 10% spike in the price of an avocado could drag down earnings by 10 to 12 cents per share in the third quarter.<\/li>\n<\/ul>\n<p>In this article<\/p>\n<ul>\n<li><span>CMG<\/span><\/li>\n<\/ul>\n<p>Chipotle Mexican Grill&#x27;s margins could take a hit from the predicted decline in avocado shipments next quarter, according to Truist analyst Jake Bartlett.<\/p>\n<p>The Hass Avocado Board is forecasting a 5.8% decline in avocado shipments during the third quarter compared with last year. A smaller supply of avocados could cause prices to spike and make it more expensive for Chipotle to whip up its guacamole.<\/p>\n<p>Bartlett estimated in a Wednesday note to clients that avocados account for only 5% to 10% of Chipotle&#x27;s cost of goods sold, but they can still have a significant impact on its margins. He is forecasting that a 10% spike in the price of an avocado could drag down earnings by 10 to 12 cents per share in the third quarter.<\/p>\n<p>By now, the burrito chain is very familiar with spiking avocado prices. CFO Jack Hartung told analysts on the company&#x27;s first-quarter earnings call that the company is seeing a seasonal shift every year now.<\/p>\n<p>The summer months typically usher in surging prices for avocados because Mexico, the top supplier of them to the U.S., usually ships fewer during those months. Peru, the second-highest supplier, usually sees its avocado shipments rise during the summer, thanks to reversed seasons in the Southern Hemisphere, but its production typically isn&#x27;t enough to satiate American consumers. California grows about 12% of the supply.<\/p>\n<p>So far, 2021 has been a rocky road for avocado prices. They fell 26% in the first quarter due to higher shipments from Mexico and rose 4% in the second quarter, according to Bartlett. As of Friday, U.S. retail prices for the Hass variety were up 6% to $1.19, based on USDA data.<\/p>\n<p>Chipotle has already raised prices this year. Earlier in June, executives said menu prices have risen about 4% to cover the cost of raising wages for its workers. Hartung said the company is monitoring rising food costs but no further increases are planned at that time.<\/p>\n<p>Chipotle did not immediately respond to a request for comment from CNBC.<\/p>\n<p>Shares of Chipotle were up modestly Wednesday afternoon. The stock is up 5% this year, giving the company a market value of $42 billion.<\/p>\n<p>Source: <a href=\"https:\/\/www.cnbc.com\/2021\/06\/23\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says.html\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Hass Avocado Board is forecasting a<\/p>\n","protected":false},"author":3,"featured_media":129890,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23051],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"The Hass Avocado Board is forecasting a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-23T19:55:11+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/06\/Falling-avocado-shipments-could-hurt-Chipotles-margins-analyst-says.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/\",\"url\":\"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/\",\"name\":\"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says - Pre Coin News\",\"isPartOf\":{\"@id\":\"https:\/\/precoinnews.com\/#website\"},\"datePublished\":\"2021-06-23T19:55:11+00:00\",\"dateModified\":\"2021-06-23T19:55:11+00:00\",\"author\":{\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/precoinnews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/precoinnews.com\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/precoinnews.com\/#website\",\"url\":\"https:\/\/precoinnews.com\/\",\"name\":\"Pre Coin News\",\"description\":\"precoinnews.com\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/precoinnews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"mediabest\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/precoinnews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g\",\"caption\":\"mediabest\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says - Pre Coin News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/","og_locale":"en_US","og_type":"article","og_title":"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says - Pre Coin News","og_description":"The Hass Avocado Board is forecasting a","og_url":"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/","og_site_name":"Pre Coin News","article_published_time":"2021-06-23T19:55:11+00:00","author":"mediabest","twitter_card":"summary_large_image","twitter_image":"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/06\/Falling-avocado-shipments-could-hurt-Chipotles-margins-analyst-says.jpg","twitter_misc":{"Written by":"mediabest","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/","url":"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/","name":"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says - Pre Coin News","isPartOf":{"@id":"https:\/\/precoinnews.com\/#website"},"datePublished":"2021-06-23T19:55:11+00:00","dateModified":"2021-06-23T19:55:11+00:00","author":{"@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/precoinnews.com\/business\/falling-avocado-shipments-could-hurt-chipotles-margins-analyst-says\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/precoinnews.com\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/precoinnews.com\/category\/business\/"},{"@type":"ListItem","position":3,"name":"Falling avocado shipments could hurt Chipotle&#x27;s margins, analyst says"}]},{"@type":"WebSite","@id":"https:\/\/precoinnews.com\/#website","url":"https:\/\/precoinnews.com\/","name":"Pre Coin News","description":"precoinnews.com","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/precoinnews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"mediabest","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/precoinnews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f5f13cb3b94fc348d515c0951f6ca073?s=96&d=mm&r=g","caption":"mediabest"}}]}},"_links":{"self":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/129891"}],"collection":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/comments?post=129891"}],"version-history":[{"count":0,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/posts\/129891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media\/129890"}],"wp:attachment":[{"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/media?parent=129891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/categories?post=129891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/precoinnews.com\/wp-json\/wp\/v2\/tags?post=129891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}