Chipotle’s stock gains as new menu launch brings optimism

Chipotle Mexican Grill’s (NYSE: CMG) shares were up 1.8% in mid-day trade on Thursday after the company announced menu changes that have sparked optimism among analysts about growth in the coming year.

Chipotle said it would roll out a Supergreens salad mix this week which would comprise of hand-cut romaine along with baby kale and baby spinach, replacing the romaine-only salad base. The company also made its grilled, Adobo chicken Whole30 compliant by switching the oil in its marinade.

Chipotle’s Lifestyle Bowls had helped digital sales growth hit the $1 billion milestone recently. The company is innovating and expanding its Lifestyle Bowls and offering free delivery for the whole of January. This strategy is aimed at customers with health-related New Year resolutions and helps stick to various dietary choices such as vegetarian, vegan, keto and paleo.

Last month, Chipotle announced that it is testing a new restaurant design to better support its billion-dollar digital business and that the design will be trialed in four new restaurants.

Chipotle beat revenue and profits estimates in its most recent quarter, recording double-digit growth in both the top and bottom line numbers. The company will report its fourth quarter results on February 4, 2020.

Chipotle’s shares have gained 93% in the past one year.

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