By Sam Boughedda
Investing.com -- Chipotle Mexican Grill Inc (NYSE:CMG) has reportedly expanded the implementation of its price increase, according to KeyBanc analyst Eric Gonzalez.
TheFly quoted the analyst as saying that based on his proprietary scrape of Chipotle's digital menu, he believes it has expanded the price increase to a further 810 stores.
In a note to clients, Gonzalez said there had been a price increase of 5%-6% in approximately 1,570 stores, or around 52% of its total footprint. He added that the size of the increase varies by protein and location.
According to the analyst, a new protein flavor — Garlic Guajillo Steak — is also being tested at select locations in Southern California, priced at a 10% premium to the traditional steak protein option.
Gonzalez, who has an overweight rating on the stock, does not expect significant customer pushback and judges that a nationwide price increase would result in an upside to current consensus margin/EPS estimates.
Chipotle shares fell 1% on Wednesday.