Chipotle reported last week and the overall numbers were strong. However, sometimes it’s not the numbers which make us excited about the future of a company.
When you step back and think about what makes any company operate, it tends to start with a vision yet it ultimately ends with execution.
The bull case for Chipotle is about taking a basic menu and infusing it with a little life to draw customer traffic. So what stood out during Chipotles earnings which weren’t numbers oriented.
We went ahead and analyzed all the earnings calls since 2015 and noticed there is a distinct vision change. If the future of Chipotle is about innovating around a basic menu, then we need evidence. Sure enough during the earnings call, the word “innovation” was mentioned 39 times. That matches the cumulative total mentions since 2015. The vision is set, now it’s about execution.
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
Disclaimer: This is not a recommendation for purchase or sale of any securities. Avory is a shareholder of Chipotle at the time of this writing, but this can change at anytime
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