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Chipotle (CMG) Unveils Chipotlane Restaurant in Kentucky
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Chipotle Mexican Grill, Inc. (CMG - Free Report) recently announced the opening of its Chipotlane restaurant in Louisville, KY. This marks the company’s sixth restaurant in Louisville and the 25th restaurant in Kentucky.
Located in Louisville's Fern Creek neighborhood of Jefferson County, the restaurant comprises a digital order drive-thru pick-up lane. To boost access and convenience for its digital guests, the company partnered with a regional marketplace partner ASAP.com. The partnership is intended to provide a timely delivery experience from Chipotle restaurants (on the East Coast, South and Mid-West regions) in addition to existing national delivery partnerships.
Concerning the opening, Tabassum Zalotrawala, chief development officer, stated, "We are thrilled to celebrate this landmark Chipotlane opening. Chipotlanes are the digital drive thru of the future and a key piece of our growth strategy as we plan to more than double our restaurant count over the long term to achieve 7,000 restaurants or more in North America."
Increased Focus on Chipotlanes
Since its launch (in early 2018), the Chipotlane format has continued to enhance access, ease and satisfaction for guests, demonstrating strong performance. In third-quarter 2022, Chipotle opened 43 restaurants, of which 38 were Chipotlane based. The company stated that Chipotlane-based restaurants witnessed higher volumes and greater returns compared with a traditional Chipotle restaurant format. Given the solid customer acceptance (on account of the convenient access channel), CMG emphasized building a real estate pipeline of 255-285 restaurants (in 2023), with 80% of the restaurants having Chipotlane.
Price Performance
Image Source: Zacks Investment Research
Shares of Chipotle have gained 21.8% in the past six months compared with the industry’s 21% growth. The company benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. This and strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margin have been aiding the company. Chipotle continues to focus on the stage-gate process and leverage digital programs to expand access and convenience. Of late, earnings estimates for 2023 have moved up, depicting analysts’ optimism regarding the stock’s growth potential.
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Wingstop Inc. (WING - Free Report) , Chuy's Holdings, Inc. (CHUY - Free Report) and Texas Roadhouse, Inc. (TXRH - Free Report) .
Wingstop sports a Zacks Rank #1. WING has a long-term earnings growth rate of 11%. Shares of WING have declined 4.5% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and earnings per share (EPS) suggests growth of 18.1% and 16.4%, respectively, from the comparable year-ago period’s levels.
Chuy’s Holdings currently carries a Zacks Rank #2 (Buy). CHUY has a trailing four-quarter earnings surprise of 18.6%, on average. Shares of CHUY have increased 4.3% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings 2023 sales and EPS suggests growth of 8.6% and 11.7%, respectively, from the corresponding year-ago period’s levels.
Texas Roadhouse currently carries a Zacks Rank #2. TXRH has a trailing four-quarter earnings surprise of 11.2%, on average. The stock has increased 8.9% in the past year.
The Zacks Consensus Estimate for Texas Roadhouse’s 2023 sales and EPS suggests growth of 9.9% and 15.5%, respectively, from the corresponding year-ago period’s levels.
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Chipotle (CMG) Unveils Chipotlane Restaurant in Kentucky
Chipotle Mexican Grill, Inc. (CMG - Free Report) recently announced the opening of its Chipotlane restaurant in Louisville, KY. This marks the company’s sixth restaurant in Louisville and the 25th restaurant in Kentucky.
Located in Louisville's Fern Creek neighborhood of Jefferson County, the restaurant comprises a digital order drive-thru pick-up lane. To boost access and convenience for its digital guests, the company partnered with a regional marketplace partner ASAP.com. The partnership is intended to provide a timely delivery experience from Chipotle restaurants (on the East Coast, South and Mid-West regions) in addition to existing national delivery partnerships.
Concerning the opening, Tabassum Zalotrawala, chief development officer, stated, "We are thrilled to celebrate this landmark Chipotlane opening. Chipotlanes are the digital drive thru of the future and a key piece of our growth strategy as we plan to more than double our restaurant count over the long term to achieve 7,000 restaurants or more in North America."
Increased Focus on Chipotlanes
Since its launch (in early 2018), the Chipotlane format has continued to enhance access, ease and satisfaction for guests, demonstrating strong performance. In third-quarter 2022, Chipotle opened 43 restaurants, of which 38 were Chipotlane based. The company stated that Chipotlane-based restaurants witnessed higher volumes and greater returns compared with a traditional Chipotle restaurant format. Given the solid customer acceptance (on account of the convenient access channel), CMG emphasized building a real estate pipeline of 255-285 restaurants (in 2023), with 80% of the restaurants having Chipotlane.
Price Performance
Image Source: Zacks Investment Research
Shares of Chipotle have gained 21.8% in the past six months compared with the industry’s 21% growth. The company benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. This and strength in digital sales, rise in menu prices, new restaurant openings and higher restaurant-level operating margin have been aiding the company. Chipotle continues to focus on the stage-gate process and leverage digital programs to expand access and convenience. Of late, earnings estimates for 2023 have moved up, depicting analysts’ optimism regarding the stock’s growth potential.
Zacks Rank & Key Restaurant 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 – Restaurants industry are Wingstop Inc. (WING - Free Report) , Chuy's Holdings, Inc. (CHUY - Free Report) and Texas Roadhouse, Inc. (TXRH - Free Report) .
Wingstop sports a Zacks Rank #1. WING has a long-term earnings growth rate of 11%. Shares of WING have declined 4.5% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and earnings per share (EPS) suggests growth of 18.1% and 16.4%, respectively, from the comparable year-ago period’s levels.
Chuy’s Holdings currently carries a Zacks Rank #2 (Buy). CHUY has a trailing four-quarter earnings surprise of 18.6%, on average. Shares of CHUY have increased 4.3% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings 2023 sales and EPS suggests growth of 8.6% and 11.7%, respectively, from the corresponding year-ago period’s levels.
Texas Roadhouse currently carries a Zacks Rank #2. TXRH has a trailing four-quarter earnings surprise of 11.2%, on average. The stock has increased 8.9% in the past year.
The Zacks Consensus Estimate for Texas Roadhouse’s 2023 sales and EPS suggests growth of 9.9% and 15.5%, respectively, from the corresponding year-ago period’s levels.