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Chipotle Mexican Grill, Inc.

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Chipotle is one of the most recognized fast-casual Mexican restaurant chains in the U.S. Despite various food-safety initiatives, the company’s results in the past few quarters continued to be affected by the negative publicity linked with the food-borne illnesses, which surfaced toward 2015-end. Nonetheless, going forward, Chipotle intend to continue simplifying restaurant operations, increase brand marketing to rebuild its brand and press on the roll-out of its digital sales efforts. According to the company, these in turn will lead to improved guest experience and reinstate customer affinity for the Chipotle brand. In fact, its efforts have already started bearing fruit as Chipotle shares have outperformed the Zacks classified Retail–Restaurants industry over the last three months. Yet, higher costs are expected to hurt margins, while a soft consumer spending environment in the U.S. restaurant space might limit revenue growth.

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