Cowen says cauliflower could be the next big menu innovation at Chipotle (NYSE:CMG).
Analyst Andrew Charles: “Our checks suggest cauliflower rice will be launching at Chipotle nationwide on January 4th, following a five-month test across 55 locations. We view the timing as opportune as Chipotle historically promotes Lifestyle Bowls in January that cater to consumer demand for healthier eating coinciding with New Year’s resolutions. The product is compliant with Keto, Whole30, Paleo and Vegan diets.”
Charles says the firm’s checks did not provide it with a sense of performance in test markets, although it notes a consistent 1% to 2% lift in same store sales with historical menu innovation.
Chipotle remains a best idea restaurant pick at Cowen for 2021 and is rated at Outperform.
