Chipotle tests out a new low-cost concept

Article Excerpt

Chipotle continues to have success in its competitive fast-food market. And now, it’s looking ahead to new opportunities. That’s why it’s testing a new takeout and delivery concept. We think this just adds to the company’s already bright future. The stock is a buy. CHIPOTLE MEXICAN GRILL, $1,590.87, is a buy. The stock (New York symbol CMG; TSINetwork Rating: Extra Risk) (www.chipotle.com; Shares outstanding: 27.6 million; Market cap: $43.9 billion; No dividends paid.) is launching a new restaurant spinoff this month called Farmesa that features “California-inspired” bowls. The virtual restaurant makes its debut in a ghost kitchen in Santa Monica, California. Ghost kitchens are stripped-down commercial cooking spaces with no dine-in option. Functioning as hubs for online delivery and catering orders, they avoid the need for costly restaurants in premium locations. Farmesa’s bowls, ranging in price from $11.95 to $16.95, will be available for delivery and takeout. Each meal consists of a protein, choice of base such as rice, a sauces, and a topping. Chipotle’s ultimate…