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Chipotle (CMG) Unveils Autocado in Collaboration With Vebu
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Chipotle Mexican Grill, Inc. (CMG - Free Report) recently announced the collaboration with Vebu, a product development company to introduce Autocado. The Chipotle Cultivate Center in Irvine, California, is currently testing the new avocado processing collaborative (cobotic) robot prototype. The device is designed to cut, core and peel avocados for the restaurant's signature guacamole.
With the introduction of the Autocado cobotic prototype, the company aims to improve processing speeds and reduce guacamole prep time by 50%. This will allow employees to focus more on serving guests and providing excellent hospitality. The company expects to utilize over 100 million pounds of avocados across its U.S., Canada, and Europe restaurants this year. The precision processing capabilities of Autocado can increase avocado fruit yield, aligning with Chipotle's sustainability goals and potentially saving millions of dollars in annual food costs.
Apart from this, the company's investment in Vebu through its Cultivate Next venture fund aims to bolster innovation in the restaurant industry. Previously, Chipotle invested in Hyphen, a foodservice platform to move their business forward by automating kitchen operations. The company's $50-million venture fund aims to invest in early-stage companies aligned with its mission to create a better world and fuel its rapid growth plans.
Focus on Digital Initiatives Bodes Well
Chipotle is focused on expanding its digital program to drive growth. During first-quarter 2023 digital sales contributed 39% to sales. The company witnessed a rise in order-ahead transactions, courtesy of enhanced guest access and convenience. The company's focus on robotics-based autonomous vehicles for delivery is likely to enhance the customer experience in the upcoming periods. This along with Chipotlanes’ add-ons, drove the company’s performance. The company focuses on improving order accuracy and timing for its digital business.
The company is focused on human capital technology to enhance the team member experience in its restaurants, paving the path for a more efficient, consistent and compliant environment.
Image Source: Zacks Investment Research
Shares of CMG have increased 63.6% in the past year compared with the Zacks Retail - Restaurants industry’s rise of 22.5%. The company has been benefiting from strong comparable restaurant sales growth, digital efforts, Chipotlane add-ons and menu innovation.
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) sports a Zacks Rank #1 (Strong Buy). PLAY has a trailing four-quarter earnings surprise of 6.8%, on average. Shares of PLAY have gained 41.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PLAY’s 2024 sales and EPS indicates a rise of 16.9% and 28%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. (ANF - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 480.6%, on average. Shares of ANF have increased 104.8% in the past year.
The Zacks Consensus Estimate for ANF’s 2024 sales and EPS indicates a rise of 3.4% and 732%, respectively, from the year-ago period’s levels.
BJ's Restaurants, Inc. (BJRI - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 93%, on average. Shares of BJRI have increased 64.7% in the past year.
The Zacks Consensus Estimate for BJRI’s 2023 sales and EPS indicates a rise of 5.5% and 317.7%, respectively, from the year-ago period’s levels.
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Chipotle (CMG) Unveils Autocado in Collaboration With Vebu
Chipotle Mexican Grill, Inc. (CMG - Free Report) recently announced the collaboration with Vebu, a product development company to introduce Autocado. The Chipotle Cultivate Center in Irvine, California, is currently testing the new avocado processing collaborative (cobotic) robot prototype. The device is designed to cut, core and peel avocados for the restaurant's signature guacamole.
With the introduction of the Autocado cobotic prototype, the company aims to improve processing speeds and reduce guacamole prep time by 50%. This will allow employees to focus more on serving guests and providing excellent hospitality. The company expects to utilize over 100 million pounds of avocados across its U.S., Canada, and Europe restaurants this year. The precision processing capabilities of Autocado can increase avocado fruit yield, aligning with Chipotle's sustainability goals and potentially saving millions of dollars in annual food costs.
Apart from this, the company's investment in Vebu through its Cultivate Next venture fund aims to bolster innovation in the restaurant industry. Previously, Chipotle invested in Hyphen, a foodservice platform to move their business forward by automating kitchen operations. The company's $50-million venture fund aims to invest in early-stage companies aligned with its mission to create a better world and fuel its rapid growth plans.
Focus on Digital Initiatives Bodes Well
Chipotle is focused on expanding its digital program to drive growth. During first-quarter 2023 digital sales contributed 39% to sales. The company witnessed a rise in order-ahead transactions, courtesy of enhanced guest access and convenience. The company's focus on robotics-based autonomous vehicles for delivery is likely to enhance the customer experience in the upcoming periods. This along with Chipotlanes’ add-ons, drove the company’s performance. The company focuses on improving order accuracy and timing for its digital business.
The company is focused on human capital technology to enhance the team member experience in its restaurants, paving the path for a more efficient, consistent and compliant environment.
Image Source: Zacks Investment Research
Shares of CMG have increased 63.6% in the past year compared with the Zacks Retail - Restaurants industry’s rise of 22.5%. The company has been benefiting from strong comparable restaurant sales growth, digital efforts, Chipotlane add-ons and menu innovation.
Zacks Rank & Other Key Picks
Chipotle currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail and Wholesale sector are:
Dave & Buster's Entertainment, Inc. (PLAY - Free Report) sports a Zacks Rank #1 (Strong Buy). PLAY has a trailing four-quarter earnings surprise of 6.8%, on average. Shares of PLAY have gained 41.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PLAY’s 2024 sales and EPS indicates a rise of 16.9% and 28%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. (ANF - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 480.6%, on average. Shares of ANF have increased 104.8% in the past year.
The Zacks Consensus Estimate for ANF’s 2024 sales and EPS indicates a rise of 3.4% and 732%, respectively, from the year-ago period’s levels.
BJ's Restaurants, Inc. (BJRI - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 93%, on average. Shares of BJRI have increased 64.7% in the past year.
The Zacks Consensus Estimate for BJRI’s 2023 sales and EPS indicates a rise of 5.5% and 317.7%, respectively, from the year-ago period’s levels.