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Chipotle's New Ad Campaign Falls Short With Investors
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It looks like the adrenaline rush from Chipotle’s nationwide ad campaign didn’t last long. Upon the release of the new ads on Monday, Chipotle Mexican Grill Inc. (CMG - Free Report) received a small surge, but is currently down 1% to $449.46 per share in midday trading Tuesday.
The Mexican-style restaurant released a series of ads featuring comedians entering a giant burrito-shaped house, where Jeffrey Tambor instructs them to “be real” because “everything is real” inside a Chipotle burrito. Following the instruction, the comedian makes a comical confession. The commercials then ends with its new slogan, “As Real As It Gets.”
"This campaign challenges the conventions of fast food advertising by being completely real - not only about our food, but about the world we live in - and it does so with an optimism and playful humor that's very much in line with our brand," said Chipotle chief marketing and development officer Mark Crumpacker, in report by TheStreet.
Shares of Chipotle have been growing steadily since March after data-analysis firm M Science and Bloomberg estimated a strong sales increase in the first quarter. The company has also been undergoing some internal fixes with board changes and attentive training on handling food.
While Chipotle looks to fix its reputation, its competition didn’t just sit and wait. Restaurant chains like Panera and McDonald’s (MCD - Free Report) are also switching up their ingredients to accommodate the more ingredient-conscious customers.
Furthermore, Panera is gaining strong financial backing when Chipotle is losing investors. Panera announced last week that it inked a merger agreement of $7.5 billion with JAB Holding Company, the parent company of Krispy Kreme, Keurig Green Mountain, Caribou Coffee and Peet’s Coffee. The Luxembourg-based JAB Holdings is a privately held business that has been focusing on expanding its consumer goods and food portfolio. With the buyout, Panera could expand into Europe.
Chipotle’s first-quarter earnings report is set to release in late April. Investors will be able to see if the company’s damage control has been working or not.
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Chipotle's New Ad Campaign Falls Short With Investors
It looks like the adrenaline rush from Chipotle’s nationwide ad campaign didn’t last long. Upon the release of the new ads on Monday, Chipotle Mexican Grill Inc. (CMG - Free Report) received a small surge, but is currently down 1% to $449.46 per share in midday trading Tuesday.
The Mexican-style restaurant released a series of ads featuring comedians entering a giant burrito-shaped house, where Jeffrey Tambor instructs them to “be real” because “everything is real” inside a Chipotle burrito. Following the instruction, the comedian makes a comical confession. The commercials then ends with its new slogan, “As Real As It Gets.”
"This campaign challenges the conventions of fast food advertising by being completely real - not only about our food, but about the world we live in - and it does so with an optimism and playful humor that's very much in line with our brand," said Chipotle chief marketing and development officer Mark Crumpacker, in report by TheStreet.
Shares of Chipotle have been growing steadily since March after data-analysis firm M Science and Bloomberg estimated a strong sales increase in the first quarter. The company has also been undergoing some internal fixes with board changes and attentive training on handling food.
While Chipotle looks to fix its reputation, its competition didn’t just sit and wait. Restaurant chains like Panera and McDonald’s (MCD - Free Report) are also switching up their ingredients to accommodate the more ingredient-conscious customers.
Furthermore, Panera is gaining strong financial backing when Chipotle is losing investors. Panera announced last week that it inked a merger agreement of $7.5 billion with JAB Holding Company, the parent company of Krispy Kreme, Keurig Green Mountain, Caribou Coffee and Peet’s Coffee. The Luxembourg-based JAB Holdings is a privately held business that has been focusing on expanding its consumer goods and food portfolio. With the buyout, Panera could expand into Europe.
Chipotle’s first-quarter earnings report is set to release in late April. Investors will be able to see if the company’s damage control has been working or not.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>