Chipotle blames high avocado price for falling earnings
While avocados were listed as the main reason, another mentioned was an increase in spending for television ads and other promotional materials. Chipotle said the avocados they use for their guacamole got more expensive, contributing to their fourth quarter sales decline.
Increased food expenses are only part of the problem, though. Chipotle has spent a pretty good chunk of money on advertising and promotions since the E. coli outbreaks in 2015 to help bury the incident and regain the trust of consumers. While avocado prices may be part of the problem some consumers may have been put off Chipotle for life after the outbreak. Business Insider notes that since the outbreaks, store sales have declined for three consecutive quarters.
source: theamericangenius.com
