To offset the higher price of ingredients, Chipotle Mexican Grill (NYSE:CMG) has raised their menu prices for the first time in a year, the company confirmed on Wednesday. The announcement drove shares higher,

The company’s chief financial officer said he believes customers would continue to flock to Chipotle despite the “modest” price hikes because the chain would still be a better value option

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

Chipotle (NYSE:CMG) shares rose more than 2% in premarket trading Wednesday after a Truist Securities analyst said that recent checks indicate price hikes of at least 2% at some stores. According to analyst Jake Bartlett,