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Chipotle (CMG) Spruces Up Menu With Mexican Cauliflower Rice
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Chipotle Mexican Grill, Inc. (CMG - Free Report) recently announced testing Mexican Cauliflower Rice at 60 restaurants in Arizona, Southern California and Wisconsin. The initiative is a testament to the company’s solid performance of Cilantro-Lime Cauliflower Rice and revolves around a new version of the recipe.
The new plant-based option comprises grilled cauliflower rice seasoned with savory spices, including garlic, cumin, salt and paprika. Designed for healthy eating, the item supports diet forms including Keto, Vegan, Vegetarian and Paleo. The company stated that the limited-time item would be made available in-restaurant and through the Chipotle app, Chipotle.com and third-party delivery partners.
Earlier, the company had launched Cilantro-Lime Cauliflower Rice across all U.S. and Canadian restaurants in January 2021. The item attracted new customers and resulted in incremental sales lift. The company noted that one in five Cilantro-Lime rice orders (in January 2021) was from guests trying Chipotle for the first time.
In relation to the latest menu addition, Nevielle Panthaky, vice president of Culinary, stated, "After the success of our Cilantro-Lime Cauliflower Rice last year, we are eager to test a second plant-powered start for any go to order. Our guests crave real, plant-based options so we developed a new flavor-packed recipe that aligns with our Food with Integrity standards."
Focus on Menu Innovation
Chipotle has been working on a new pipeline for its menu offerings to drive growth. During the first quarter of 2022, the company benefitted from the solid performance of Pollo Asado. It also unveiled new variations to its health-oriented Lifestyle Bowls that resonated well with consumers. Also, it is witnessing a strong recall for Plant-Based Chorizo (limited time offering). The company stated that it has several new products in the pipeline that are in the early stages of consumer testing. The introduction of new items and solid marketing activities that combine brand-building efforts and transaction-driving promotions and advertising are likely to lead to a steady inflow of new customers.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Chipotle have declined 12.9% compared with the industry’s fall of 22.9%. Chipotle benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. Besides, strength in digital sales, rise in menu prices, new restaurant openings and a higher restaurant-level operating margin have been aiding the company for a while. Also, a solid financial position with no debt is encouraging.
Chipotle continues focusing on the stage-gate process and leveraging digital programs to expand access and convenience. Meanwhile, earnings estimates for 2022 have moved up in the past 60 days, thereby raising analyst optimism about the stock’s growth potential.
Dollar Tree sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.1%, on average. Shares of the company have gained 50.2% in the past year.
The Zacks Consensus Estimate for Dollar Tree’s 2022 sales and earnings per share (EPS) suggests growth of 6.7% and 40.5%, respectively, from the year-ago period’s levels.
BBQ Holdings carries a Zacks Rank #2 (Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have decreased 22.2% in the past year.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2. Arcos Dorados has a long-term earnings growth of 34.4%. Shares of the company have risen 9.5% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 83.3%, respectively, from the year-ago period’s levels.
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Chipotle (CMG) Spruces Up Menu With Mexican Cauliflower Rice
Chipotle Mexican Grill, Inc. (CMG - Free Report) recently announced testing Mexican Cauliflower Rice at 60 restaurants in Arizona, Southern California and Wisconsin. The initiative is a testament to the company’s solid performance of Cilantro-Lime Cauliflower Rice and revolves around a new version of the recipe.
The new plant-based option comprises grilled cauliflower rice seasoned with savory spices, including garlic, cumin, salt and paprika. Designed for healthy eating, the item supports diet forms including Keto, Vegan, Vegetarian and Paleo. The company stated that the limited-time item would be made available in-restaurant and through the Chipotle app, Chipotle.com and third-party delivery partners.
Earlier, the company had launched Cilantro-Lime Cauliflower Rice across all U.S. and Canadian restaurants in January 2021. The item attracted new customers and resulted in incremental sales lift. The company noted that one in five Cilantro-Lime rice orders (in January 2021) was from guests trying Chipotle for the first time.
In relation to the latest menu addition, Nevielle Panthaky, vice president of Culinary, stated, "After the success of our Cilantro-Lime Cauliflower Rice last year, we are eager to test a second plant-powered start for any go to order. Our guests crave real, plant-based options so we developed a new flavor-packed recipe that aligns with our Food with Integrity standards."
Focus on Menu Innovation
Chipotle has been working on a new pipeline for its menu offerings to drive growth. During the first quarter of 2022, the company benefitted from the solid performance of Pollo Asado. It also unveiled new variations to its health-oriented Lifestyle Bowls that resonated well with consumers. Also, it is witnessing a strong recall for Plant-Based Chorizo (limited time offering). The company stated that it has several new products in the pipeline that are in the early stages of consumer testing. The introduction of new items and solid marketing activities that combine brand-building efforts and transaction-driving promotions and advertising are likely to lead to a steady inflow of new customers.
Price Performance
Image Source: Zacks Investment Research
In the past year, shares of Chipotle have declined 12.9% compared with the industry’s fall of 22.9%. Chipotle benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. Besides, strength in digital sales, rise in menu prices, new restaurant openings and a higher restaurant-level operating margin have been aiding the company for a while. Also, a solid financial position with no debt is encouraging.
Chipotle continues focusing on the stage-gate process and leveraging digital programs to expand access and convenience. Meanwhile, earnings estimates for 2022 have moved up in the past 60 days, thereby raising analyst optimism about the stock’s growth potential.
Zacks Rank & Key Picks
Chipotle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Dollar Tree Inc. (DLTR - Free Report) , BBQ Holdings, Inc. and Arcos Dorados Holdings Inc. (ARCO - Free Report) .
Dollar Tree sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.1%, on average. Shares of the company have gained 50.2% in the past year.
The Zacks Consensus Estimate for Dollar Tree’s 2022 sales and earnings per share (EPS) suggests growth of 6.7% and 40.5%, respectively, from the year-ago period’s levels.
BBQ Holdings carries a Zacks Rank #2 (Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have decreased 22.2% in the past year.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 46.1% and 67.6%, respectively, from the year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2. Arcos Dorados has a long-term earnings growth of 34.4%. Shares of the company have risen 9.5% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 83.3%, respectively, from the year-ago period’s levels.