Chipotle stock rose Tuesday after the fast-casual chain announced a new investment in an artificial intelligence supply chain firm and a competitor to Mediterranean chain Cava Group (CAVA).
Chipotle Mexican Grill (CMG) on Tuesday said it is making two new investments through its $100 million Cultivate Next venture fund. The restaurant is taking a minority stake in Lumachain, an AI supply chain platform, as well as Brassica, an Eastern Mediterranean fast-casual restaurant concept. Exact figures for the investments were not disclosed.
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Sydney-based Lumachain provides a traceability solution that tracks the origin location and condition of individual items in the supply chain. Chipotle said the farm-to-table service reduces waste and increases efficiency.
“The visibility in real time and quality data analytics that Lumachain’s software provides could optimize the management and quality of perishable goods for the food industry,” Curt Garner, chief customer and technology officer at Chipotle, said in the release.
Ohio-based Brassica provides Eastern Mediterranean-inspired cuisine and allows guests to customize their salads and sandwiches. The fast-causal chain specializes in housemade falafel, organic pita, and vegan options, similar to Cava. However, Brassica currently has six restaurant locations. Chipotle said the funding from the minority investment will help Brassica scale to open new locations and expand to new markets.
The Cultivate Next venture fund portfolio also includes GreenField Robotics, Zero Acre Farms, Local Line, Meati Foods and more.
Chipotle Stock Performance
Chipotle stock climbed 0.9% Tuesday.
CMG stock is basing, with a 69.26 buy point. The entry matches its all-time high from mid-June, prior to the 50-1 stock split on June 26.
Chipotle stock has rallied nearly 31% so far this year.
CAVA stock slid 0.6% Tuesday. Shares hit a record high of 135.57 on Monday. CAVA stock has rocketed 211% in 2024.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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