Chipotle said it is raising its menu prices by 2%, a rare direct admission about the impact that continued price increases in the economy are having on its finances.

“For the first time in over a year, we have implemented a modest price increase of approximately 2% nationwide to offset inflation,” Chipotle Chief Corporate Affairs Officer Laurie Schalow said in a statement obtained by NBC News.

The comment came in part in response to an analyst report from financial group Truist Securities that observed a 2% increase at 20% of Chipotle locations surveyed.

Chipotle is in a transition period following the departure of CEO Brian Niccol, who was poached from Starbucks in August. Shares of Chipotle fell on news of Niccol’s departure, but have risen 23% since then and are up about 42% year to date.

While Chipotle has consistently posted strong profits in recent quarters, the company missed revenue forecasts in its most recent financial report. While it said traffic remained stable – which Truist analysts also see in card spending data – overall demand showed signs of slowing.

Chipotle also acknowledged that food costs rose as the company responded to viral online complaints about shrinking portion sizes.

Eating out has generally become more expensive in recent years. Prices of food away from home, as measured by the Bureau of Labor Statistics, have risen more than 28% since spring 2020, when the Covid-19 pandemic broke out in the US

Many restaurants experienced high sales during this period alongside rising ingredient costs – but continued to enjoy strong revenues as consumers were, in some cases, willing to accept the higher prices if they believed they received good value for money to obtain.

In Chipotle’s case, Truist said the company is raising prices “from a point of strength,” meaning traffic remains stable, according to Truist’s proprietary card spending data. Meanwhile, Chipotle’s total operating costs remain largely under control.

Food prices are notoriously volatile. According to the USDA, wholesale poultry prices were 4.5% lower in October 2024 than in October 2023, and wholesale poultry prices are forecast to decline by a net 0.6% this year.

Still, beef and veal prices were 1.9% higher last October than in October 2023 and are expected to rise faster than most other meat categories in 2024 “due to tight supply and continued demand.”