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Chipotle (CMG) Tests New Technology to Improve Guest Experience

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Chipotle Mexican Grill, Inc. (CMG - Free Report) is leaving no stone unturned to enhance its employee and guest experience. In this regard, the company recently announced that it is piloting advanced technologies.

Recently, the company started piloting two new technologies in its restaurants. These technologies will help the company to deliver accurate forecasting, the best quality and increased convenience for digital guests.  

Curt Garner, chief technology officer said, “The new kitchen management system has alleviated manual tasks for our crew and given restaurant managers the tools they need to make informed in the moment decisions, ultimately enabling them to focus on an exceptional culinary and an outstanding guest experience.”

To provide a seamless, convenient experience for guests, the company is enhancing its app functionality. The company’s new kitchen management system is in a testing phase at eight restaurants in Orange County, CA.

During the first quarter of 2022, Chipotle initiated testing of an autonomous kitchen assistant, Chippy, which integrates culinary traditions with artificial intelligence to make tortilla chips. The initiative involves robotics collaboration, thereby allowing the company to focus on other culinary tasks in the restaurant without sacrificing the quality and deliciousness of the item. Apart from this, the company has also rolled out a new labor scheduling program and initiated testing radio frequency identification technology to enhance traceability and inventory systems.

Zacks Investment Research
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Stock Performance

In the past three months, the Zacks Rank #3 (Hold) company’s shares have increased 19.4% compared with the industry’s gain of 3.5%. Notably, the company has been benefiting from its digital efforts, Chipotlane add-ons and marketing initiatives. This, along with strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margins have been aiding the company. A solid financial position with no debt is also encouraging.

Key Picks

Some better-ranked stocks in the Zacks Retail-Wholesale sector are Tecnoglass Inc. (TGLS - Free Report) , Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) and Wingstop Inc. (WING - Free Report) .

Tecnoglass currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 24.4%, on average. Shares of the company have increased 14.5% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TGLS’s 2022 sales and earnings per share (EPS) suggests growth of 28.2% and 47.7%, respectively, from the year-ago period’s levels.

Cracker Barrel currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth of 6.9%. Shares of the company have declined 31.6% in the past year.

The Zacks Consensus Estimate for CBRL’s 2022 sales and EPS suggests growth of 16.3% and 15.4%, respectively, from the year-ago period’s levels.

Wingstop carries a Zacks Rank #2. It has a long-term earnings growth of 12%. Shares of the company have risen 64.8% in the past three months.

The Zacks Consensus Estimate for WING’s 2022 sales and EPS suggests growth of 24.5% and 16.3%, respectively, from the year-ago period’s levels.

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