May 31, 2019 / 4:15 PM / 6 months ago

BUZZ-Shares of restaurant operators, avocado producers sour on Mexican tariffs threat

** Shares of Chipotle Mexican Grill and Calavo Growers fall on President Donald Trump’s threat of 5% tariff on all Mexico imports

** U.S. imported about $517.9 mln worth of avocados from Mexico in Q4 2018, according to Hass Avocado Board, an agricultural promotion group based in California

** According to CMG's annual here filing, a 'substantial' volume of produce items it uses are grown in Mexico

** The restaurant chain operator also said any increase in the prices of the ingredients most critical to its menu, would have a particularly adverse effect on its operating results

** Calavo, which mainly operates in the avocado industry, sells avocados sourced from a variety of locations, including Mexico

** CVGW's Calavo Foods business accounted 10% to its total sales of $1.1 bln in 2018; The unit processes avocados into a wide variety of guacamole products including both frozen and fresh guacamole (bit.ly/2W1U7Dn)

** CVGW down 3.7% at $86.68, CMG down 1.5% at $666.61

** Shares of other restaurant chain operators related to avocado pricing like El Pollo Loco & Del Taco are down 0.6% and 1.6% each; lemon and avocado producer Limoneira’s shares also down ~1% (Reporting by Ashwini Raj in Bengaluru)

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