January 26, 2023
(press release)
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Following Chipotle’s overweight stock rating by Wells Fargo; Ramsey Baghdadi, Foodservice Analyst at GlobalData, a leading data and analytics company, offers his view: “Chipotle has proactively engaged with and invested in key forward-thinking themes in the foodservice industry such as Robotics (e.g. piloting the AI kitchen assistant Chippy) and the Metaverse (e.g. launching the Burrito builder on the gaming platform Roblox), which will make the chain stand out from competitors for years to come. “According to GlobalData’s 2022 Q4 survey, the majority (71%) of consumers globally are influenced by how digitally advanced or “smart” a product or service is. The pandemic accelerated digitalisation in the foodservice sector, and now it is being further advanced by labor shortage. However, Chipotle’s investments take it a step ahead of the curb in an incredibly competitive market and promise to help safeguard it from further future disruptions. “As far as Chipotle’s mid to short-term strategy is concerned, the company has responded well to the cost-of-living crisis through regular price promotions and reacted quickly to changes in consumer behavior by investing more in social media and online delivery. It is no surprise that they have become a top leader in foodservice and be regarded as a safe investment.” *GlobalData’s Q4 2022 Consumer Survey, November 2022, Respondent Sample Size of 21,000
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