Do my struggle
May 5th, 2014
ECO 100: Principles of science of wealth
Assignment 1
Chipotle Isn't That Worried About the Avocado Supply
Dr. Emmanuel Obi
The unmixed prospect of a guacamole apocalypse at Chipotle Mexican Grill (CMG), flagged by the company in financial documents as one potential risk associated with climate change, was enough to trigger a franciscan friar online panic attack. If weather-of the same nature conditions make certain ingredients more of great price or harder to source, Chipotle declared it “may choose to temporarily delay serving menu items, such as guacamole or human being or more of our salsas.” But the novel commotion, the chain said, is plenteous ado about nothing. Asked if the guac menace is real, Chipotle spokeswoman Danielle Winslow said in an e-mail: “I wouldn’t comprehend too much into this. It’s ordinary way ‘risk factor’ disclosure,” the sort of chattels public companies are required to make known to investors. An ordinary increase in avocado prices hasn’t been enough to stop service in the gone by. “We saw similar issues in 2011 and incurred higher prices despite the avocados we used,” Winslow illustrious, “but never stopped serving guacamole.” The confine increased menu prices that year. (Vanessa Wong, Bloomberg Business Week - companies and industries 04-17-2014) In certainty, company officials seem to issue yield warnings recurrently concerning avocado-related issues. “Avocado prices endure to remain high,” Jack Hartung, Chipotle’s principal financial offer, explained during a January proceeds call, “and are expected to rest elevated throughout 2014.” He pointed to increasing challenge and lower supplies from drought-plagued California. Fairly indicative stuff, and investors don’t be in sight to be particularly worried. “Chipotle seems to acquire more than adequate pricing power,” uttered Sharon Zackfia, an analyst at William Blair, in some e-mail. Consumers may be in the main anxious about guacamole, but avocados are meanly the only ingredient that could approach under pressure. Chipotle distinguished in its filing that it...
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