Chipotle says guacamole fears 'way overblown'
Calm down, everyone. The Mexican-food chain says that while global warming could impact its ingredients in the future, no changes are expected.
Holy guacamole, Batman!
Chipotle Mexican Grill (CMG) lovers everywhere have been fussing and fretting over hints the company may have to cut the beloved green gunk from its menu due to global warming.
"Increasing weather volatility or other long-term changes in global weather patterns, including any changes associated with global climate change, could have a significant impact on the price or availability of some of our ingredients."
That's the buildup. The clincher came when Chipotle said if prices go up for crucial ingredients, it could mean an adverse hit on operation results. And then . . .
"Alternatively, in the event of cost increases with respect to one or more of our raw ingredients, we may choose to temporarily suspend serving menu items, such as guacamole or one or more of our salsas, rather than paying the increased cost for the ingredients."
Chipotle said in the 10-K that cutting out guacamole, or other vital burrito stuffers, could be a potential hit to restaurant traffic, comparable sales and adversely impact the brand. But is this a storm in a burrito bowl? In an emailed response to MarketWatch, Chipotle's communications director Chris Arnold had this to say:
"This is way overblown. It's routine 'risk factor' disclosure," Arnold said. "We are required to disclose issues that could present risks to our business -- like supply constraints or higher food costs -- and we are very thorough in making those decisions."
With regards to avocados, Arnold said there were similar issues in 2011. That meant higher prices for the avocados they used, but they "never stopped serving guacamole . . . the sky is not falling," he said.
Chipotle's stock has been a darling over the last 12 months -- up around 78 percent -- and got a sizeable bump after the company posted a 30 percent rise in fourth-quarter earnings early this year, as more traffic for restaurants boosted sales. Shares weren’t paying the slightest attention to the latest news, but there was a lot of panic online.
Guacamole is a big deal to Chipotle. On its website, Chipotle says it uses 97,000 pounds of avocados on an average day, and it takes 70 to make a single batch of guacamole. The company boasts it provides "Food with Integrity," such as locally-sourced vegetables -- grown on farms within 350 miles of the restaurant -- meat from animals that aren't given antibiotics and 100 percent recycled napkins.
According to Wikipedia, 95 percent of U.S. avocado production is found in Southern California, a state that is in the throes of a three-year drought and the site of plenty of Chipotle restaurants.
so eat all the guacamole you want
Chipotle-you are full of CRAP! We have had enough of your BS! Your food is not that good anyway!
Global warming or "climate change is a myth perpetuated by liberals and the far left media like TWC for financial gain and social engineering, aka, people control. It is a fraud and never existed. Only total morons still believe in it.
Well we have people lined up on both sides of the Global warming issue or Climatic Crisis..
Both say the other side are lying...
I guess my only concern, is I don't want to be on the WRONG side....??
Thanks to fingerling fish, how many farmers are out of business? Idiotic Nancy Pelosi wants us to buy all our produce from that **** south of the border..............
Politicians are diseased in the brain, and are political prostitutes.
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