Mexican food chain Chipotle (CMG) has increased prices for menu items by about 4% to cover the costs of worker raises, CEO Brian Niccol said Tuesday.

Chipotle had said on May 10 that it would raise hourly wages to an average of $15-an-hour for restaurant workers by the end of June. The move comes as several other food chains and retailers have raised hourly wages amid a labor crunch.

"We really prefer not to take pricing. But it made sense in this scenario to invest in our employees and get these restaurants staffed and make sure that we have the pipeline of people to support our growth," Niccol said.

"And then with that, we've taken some pricing to cover that," Niccol added.

Chief financial officer Jack Hartung said the move "feels like the right thing, at the right time."

The Southern California-based company has over 2,800 locations across the U.S., Canada and Europe, according to its official website.

Shares of Chipotle Mexican Grill Inc. on Tuesday closed at $1,336.64, up $13.38, or 1.01%.