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Chipotle (CMG) Invests in Nuro for Digital Sales Enhancement
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In an effort to boost its digital sales, Chipotle Mexican Grill, Inc. (CMG - Free Report) recently invested in Nuro — a robotic company for the delivery services — as part of their Series C funding round. This marks the company’s first major investment in a third-party technology firm since CEO Brian Niccol took up the position in 2018.
Notably, Nuro utilizes robotics in its fleet of on-road, occupantless and autonomous vehicles to deliver consumer goods. Dave Ferguson, Nuro co-founder and president said “Nuro and Chipotle share the same commitment to improving everyday life through innovative products, whether it's through responsibly sourced food or autonomous delivery vehicles.”
With Internet, digitalization and electronics influencing every facet of our day-to-day lives, it is obvious that the restaurant industry has embraced this trend. The company’s digital sales, which soared 174% year over year in 2020 is likely to be boosted further by the investment in Nuro.
Shares of Chipotle have appreciated 125.5% in the past year, compared with the industry’s rally of 56.6%.
Digitalization: A Major Growth Driver
Chipotle is focusing on expanding digital program to drive growth amid the ongoing COVID-19 pandemic. In order to drive digital sales and retain customers amid the coronavirus crisis, the company is leaving no stone unturned to make digital ordering more appealing to customers and more efficient for its restaurants. In this regard, Chipotle has redesigned and simplified its online ordering site, enabled online payment for catering, online meal customizations and collaborated with several well-known third-party providers for delivery.
Moreover, partnerships with Uber Eats and Grubhub are attracting new customers. The company has also expanded digital capabilities into Canada. Moreover, collaboration with all the major third-party delivery aggregators has increased orders. In order to boost convenience in the digital ordering platform, the company has also initiated features such as unlimited customization, contactless delivery and group ordering. During fourth-quarter 2020, digital sales soared 177.2% year over year to $781.4 million. It contributed 49% to sales during the quarter. Notably, digital sales mostly comprised of order-ahead and digital pickup orders owing to tougher COVID restrictions.
Jack in the Box has an impressive long-term earnings growth rate of 17%.
Chuy's Holdings has beat estimates in each of the trailing four quarters, with the average being 126.5%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Chipotle (CMG) Invests in Nuro for Digital Sales Enhancement
In an effort to boost its digital sales, Chipotle Mexican Grill, Inc. (CMG - Free Report) recently invested in Nuro — a robotic company for the delivery services — as part of their Series C funding round. This marks the company’s first major investment in a third-party technology firm since CEO Brian Niccol took up the position in 2018.
Notably, Nuro utilizes robotics in its fleet of on-road, occupantless and autonomous vehicles to deliver consumer goods. Dave Ferguson, Nuro co-founder and president said “Nuro and Chipotle share the same commitment to improving everyday life through innovative products, whether it's through responsibly sourced food or autonomous delivery vehicles.”
With Internet, digitalization and electronics influencing every facet of our day-to-day lives, it is obvious that the restaurant industry has embraced this trend. The company’s digital sales, which soared 174% year over year in 2020 is likely to be boosted further by the investment in Nuro.
Shares of Chipotle have appreciated 125.5% in the past year, compared with the industry’s rally of 56.6%.
Digitalization: A Major Growth Driver
Chipotle is focusing on expanding digital program to drive growth amid the ongoing COVID-19 pandemic. In order to drive digital sales and retain customers amid the coronavirus crisis, the company is leaving no stone unturned to make digital ordering more appealing to customers and more efficient for its restaurants. In this regard, Chipotle has redesigned and simplified its online ordering site, enabled online payment for catering, online meal customizations and collaborated with several well-known third-party providers for delivery.
Moreover, partnerships with Uber Eats and Grubhub are attracting new customers. The company has also expanded digital capabilities into Canada. Moreover, collaboration with all the major third-party delivery aggregators has increased orders. In order to boost convenience in the digital ordering platform, the company has also initiated features such as unlimited customization, contactless delivery and group ordering. During fourth-quarter 2020, digital sales soared 177.2% year over year to $781.4 million. It contributed 49% to sales during the quarter. Notably, digital sales mostly comprised of order-ahead and digital pickup orders owing to tougher COVID restrictions.
Zacks Rank & Key Picks
Chipotle, which shares space with Brinker International, Inc. (EAT - Free Report) , carries a Zacks Rank #3 (Hold). Some better-ranked stocks that warrant a look in the same space include Jack in the Box Inc. (JACK - Free Report) and Chuy's Holdings, Inc. (CHUY - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jack in the Box has an impressive long-term earnings growth rate of 17%.
Chuy's Holdings has beat estimates in each of the trailing four quarters, with the average being 126.5%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>