- Chipotle is seeing some pressure on avocado supply as demand and prices rise.
- Executives said demand always increases at this time of year, so it shouldn't affect your guacamole.
- Chipotle on Wednesday reported surging digital sales as it invests heavily in "Chipotlane" drive-thrus.
- See more stories on Insider's business page.
Chipotle is warning of a potential squeeze on avocados. But don't worry – it happens every year, and it shouldn't affect your guacamole, executives said.
Jack Hartung, the chain's chief financial officer, told investors that growing demand for avocados has resulted in higher prices.
"In terms of commodities, the one that we're seeing for sure, and this is more of a seasonal shift that we see pretty much every year is avocados. We are going to see an increase in avocado prices as we shift into the next season," Hartung said on Chipotle's first-quarter earnings call Wednesday.
In the next quarter, the chain said it expects a rise in avocado prices to offset increased revenues from new delivery surcharges.
In 2019, a rise in demand for avocados resulted in price increases and supply-side squeezes for consumers looking for guacamole. At the time, a Chipotle spokesperson told Insider that the chain was not worried about the shortage since the company has worked to "diversify our produce supply consistent with our food with integrity principles."
Chipotle saw revenues of $1.7 billion in the first quarter of the year, in line with investor expectations and an increase from last year when the pandemic first hit the US. Digital orders also surged during the period to make up more than half of sales for the first time.
