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Watch Out Guac Lovers: Chipotle Prepares For Seasonal Avocado Decline


Watch Out Guac Lovers: Chipotle Prepares For Seasonal Avocado Decline
06/23/21 AT 7:58 PM
Mexican-food chain Chipotle (CMG) is bracing for a sharp increase in the price of guacamole, a popular menu item.
An expected 5.8% decline in Hass Avocados could have a major effect on Chipotle s margins for the upcoming quarter, according to Truist analyst Jake Barlett. The Hass avocado is a large avocado, weighing about 250 grams.
A smaller supply of avocados forecasted by The Hass Avocado Board could cause prices to rise. Southern California-based Chipotle notes on its website that the company uses only Hass avocados because they’re the creamiest, most delicious of all avocado varieties. They re dark green and bumpy on the outside and velvety smooth on the inside, with a high-fat content but the good kind. ....

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