Latest news with #Boatwright
Yahoo
5 days ago
- Business
- Yahoo
Chipotle's new CEO is bringing back a missing ingredient to hit the chain's next goal—raising annual sales per store to $4 million
When Scott Boatwright joined Chipotle Mexican Grill as chief operating officer eight years ago, he worked closely with the burrito chain's founder, Steve Ells. Chipotle was laser-focused on operations at the time, as it looked to rebuild sales after a safety crisis a couple of years earlier. But Boatwright felt that there was one ingredient missing: an extra touch of hospitality. As Boatwright, CEO since last November, recalls it, Ells told him that Chipotle didn't need to be friendly, it just needed to be fast. That's changing now that Boatwright is in charge. And friendlier service is a key prong in his plan to leave his mark on a quick-service chain. 'Our team members got so focused on creating the experience efficiently that they can just forget to smile,' Boatwtright tells Fortune in a recent interview at Chipotle headquarters in Newport Beach, Calif. That doesn't mean an in-depth exchange about how your kids are doing in school, he hastens to add. But it does mean basic greetings and questions like 'What can I make fresh for you today?' or phrases like 'Thank you for spending your hard-earned money at Chipotle,' which Boatwright says do not slow employees down, but rather add a more welcoming vibe to what is after all a hospitality business. (His predecessor and former boss Brian Niccol, who decamped for Starbucks last year after a highly successful six-year stint at Chipotle, is doing something similar at the coffee-shop chain, instructing baristas to leave short personal notes on cups. But the trick, Boatwright cautions, for such touches to work is for them not to feel 'forced.') 'We're all fighting for market share, we're all fighting for dollars,' he says. And that means the right-brain skills of making customers feel welcome have to be deployed along with the left-brain skills needed for best-in-class operations. That's all the more important given that Chipotle's plan to grow includes more international expansion, notably its bold bet on Mexico, going deeper into smaller U.S. cities and trying to get more business from each of its 3,500 existing restaurants. In the 10 months since he took the reins, initially on an interim basis, Chipotle shares have barely budged, reflecint a 'wait-and-see' attitude on Wall Street. On the same day Boatwright told Wall Street investors about the smile-more campaign, Chipotle announced its plan to work with a partner to open restaurants in Mexico, the spiritual home of the burritos and quesadillas it sells. The news raised eyebrows, given that Taco Bell's attempts to conquer Mexico a few years ago flopped. Analyst Antonio Hernandez at Actinver Research wrote in a research note that 'familiarity with its ingredients does not necessarily predict success,' according to Reuters. But Chipotle's top executives insist there is place in the market for its Americanized Mexican food given its focus on freshness and high standards. 'We're not just another American fast-food place that's coming,' says chief brand and marketing officer Chris Brandt, using a term many in the industry find derogatory, preferring 'quick-service restaurant.' 'It seems a bit like a selling-ice-to-Eskimos type of thing,' he jokes. But, he says, the white space in the market for Chipotle is Mexican-esque food of a certain quality, and freshness of ingredients in a faster environment. What's more, the Mexican experiment, done in partnership with a restaurant operator, Alsea, that has extensive experience there, will tell Chipotle if and how fast it can go further afield in Latin America. Brandt and Boatwright both say they are not worried about any anti-American sentiment abroad that would affect Chipotle expansion, in light of the sparring between the U.S.'s and Mexico's governments in recent months. 'I don't know if that trickles down to brands,' says Boatwright. In addition, Chipotle plans to grow by generating more business at restaurants it already has and expanding to new markets Stateside. Last year, the average Chipotle had annual sales of $3.2 million, but chief financial officer Adam Rymer says that figure can hit $4 million in the not too distant future. (Rymer also sees the potential for Chipotle to hit 7,000 stores by expanding not only abroad but also domestically into smaller markets of say 30,000 people where restaurants like a Chili's or an Olive Garden might not go but where people might want more options than McDonald's or KFC.) As his colleague, brand chief Brandt, puts it: 'We are a real restaurant, and most places in our space are not.' This is where operations, Boatwright's area of expertise for years, comes in. Chipotle uses 53 ingredients to prepare its food and is working hard on equipment innovation to make cooking easier without affecting the final product. A produce slicer and a device to help workers cut onions quickly are just two of the changes being made to speed up production without, the executives insist, affecting quality. Boatwright would also like to see quicker food innovation and go from two limited-time-offer (LTOs in industry jargon) items a year, or a temporary additional menu item meant to stoke interest, to perhaps three. Data analytics more sophisticated than the ones it used just a few years ago have allowed Chipotle to avoid misfires with its LTOs, like the Garlic Guajillo Steak disappointment in 2022, giving Boatwright and his team more confidence to innovate. Currently, Chipotle has a hit on its hands with honey chicken bowls and burritos, a product inspired by a Nashville food trend. 'We're not adventurous at all,' says the CEO. 'We follow a very strict stage-gating process. We'll know long before its hits the market whether it's going to be successful or not.' But one thing no one should expect: lower priced items gumming up the menu. Chipotle tried that during the financial crash of 2008–2009, only to find customers yawning. 'We've seen in the past is that it really didn't lead to more visits,' says CFO Clymer. 'The market testing we've done found that people are really stuck on what it is they go to Chipotle for.' (The company was able to pass on much of the inflation in recent years to customers with little pushback, though executives say they are being careful regarding the impact of tariffs on items like avocados and Australian beef.) And so as Chipotle looks to build on its 2024 sales of $11.3 billion, and quickly reverse a same-restaurant sales decline last quarter, it has a number of levers at its disposal. But execs say they are mindful of the changes that can add to sales initially but that ultimately would damage a brand anchored in what it calls food integrity. 'When brands start trying to be everything to everyone, they lose their identity,' says Boatwright. This story was originally featured on Sign in to access your portfolio
Yahoo
14-05-2025
- Sport
- Yahoo
Annual Duck Race gets competitive for a good cause
PANAMA CITY BEACH, Fla. (WMBB) – This year's Duck Race will be one to remember, whether attendees were in the water or nice and dry outside watching. In addition to providing crucial community support, Beach Care Services also gives us an unforgettable event. 'We plan this every year. This is like my 13th year, 12th year, something like that. And we start planning this in January. So it takes from January to now. And we try to put on the best event, and a lot of bragging rights and a lot of community leaders come in, and we really enjoy having everybody help us out,' Duck Wrangler David Boatwright said. Although the best overall time wins, several of the races got personal as rivalries were tested, as you can imagine News 13's race got competitive. Although it was beak to beak, in the end, News 13's Ethan Logue took a final dive to victory. And just when you thought it couldn't get any more competitive, Panama City Beach Police Officers and Firefighters proved everyone wrong. It was a battle that audience members eagerly watched. With Panama City Beach Fire eventually extinguishing the boys and girls in blue. And while Tuesday's Duck Race was all fun and games, Beach Care Services outreach is very serious. 'It's one of my biggest loves about this, that it goes right into our own community, and everybody needs a little help sometimes. So you can apply for it at care services board and get some short-term emergency help,' Boatwright said. Anyone who missed this year's fun, don't make the same mistake next year. 'Especially if your new business is one of the best ways for you to spend some extra money and get some good local marketing for your business. So I would say, you know, this is kind of an early call to maybe get some of your business noticed next year,' Boatwright added. Referee Boatwright said they work to make the event bigger and better every year, even giving a hint that in the future they might create a designated trophy the police and firefighters can pass back and forth every year. For more information about Beach Care Services, click here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Daily Mail
01-05-2025
- Business
- Daily Mail
Major food chain makes specific request to staff
Published: | Updated: Chipotle has made a very specific request of its staff, and bosses hope it will help the business in an economic downturn. The Mexican fast-casual has ordered its employees to smile at customers in an effort to boost its hospitality. 'The fact is smiles down the line don't slow us down,' CEO Scott Boatwright told investors during an earnings call on Wednesday. It comes as consumer sentiment is falling as fears of an imminent recession grow . Customers are keen to keep their spending in check and are therefore visiting less frequently, Boatwright told analysts. The brand is performing well on food quality and speed of service, and revenue is up 6.4 percent compared to the same time last year. However, internal analysis found 'deficiencies' in store's cleanliness, the friendliness of its staff and how restaurants follow up on customers' complaints. In response Boatwright wants Chipotle to create a 'guest obsessed' culture that keeps customers coming back. 'This includes a friendly smile at tortilla, a heartfelt thank you from our cashier, clean dining rooms and drink stations, and great guest on-site recovery for any issue,' he explained. Chipotle reported a strong start to the year with revenue reaching $2.9 billion in the first three months of the year. However, its same-restaurant sales fell 0.4 percent in the same period and transactions fell 2.3 percent, reflecting consumers cutting back on dining out. The chain plans to lure back repeat diners with a boost to customer experience rather than any cuts to its menu prices. In fact Boatwright has previously warned that if anything prices would rise following Trump's tariffs. Boatwright told analysts that the company is already making strides on elevating diners experience. Refunds as a percentage of sales and the cost of dealing with customer complaints are both down. The company is also planning to roll out more kitchen equipment to help make order fulfillment more efficient. The introduction of produce slicers, dual-sided planchas for cooking chicken and steak, three-pan rice cookers, and dual-vat fryers will begin in 100 locations in the coming months before being rolled out nationwide in the next few years. In August, Chipotle also introduced the 'autocado' a machine able to peel, stone and cut an avocado for guacamole in 26 seconds. Meanwhile, a 'digital makeline' portions up salads and bowls based on orders on the app. 'The end goal is to improve the experience for our teams by making tasks easier to execute, more efficient, faster and more consistent while maintaining our high culinary standards,' the CEO explained on Wednesday. Chipotle's plans are similar to the turnaround efforts at Starbucks. CEO Brian Niccol, who formerly held the top job at Chipotle, has asked staff to boost customer experience by writing messages on their coffee cups . However, the plans have already sparked a backlash among baristas who claim it slows down orders and feels 'forced.' Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.
Daily Mail
01-05-2025
- Business
- Daily Mail
Chipotle makes surprising request to staff that could change how they treat you
Chipotle has made a very specific request of its staff, and bosses hope it will help the business in an economic downturn. The Mexican fast-casual has ordered its employees to smile at customers in an effort to boost its hospitality. 'The fact is smiles down the line don't slow us down,' CEO Scott Boatwright told investors during an earnings call on Wednesday. It comes as consumer sentiment is falling as fears of an imminent recession grow. Customers are keen to keep their spending in check and are therefore visiting less frequently, Boatwright told analysts. The brand is performing well on food quality and speed of service, and revenue is up 6.4 percent compared to the same time last year. However, internal analysis found 'deficiencies' in store's cleanliness, the friendliness of its staff and how restaurants follow up on customers' complaints. In response Boatwright wants Chipotle to create a 'guest obsessed' culture that keeps customers coming back. 'This includes a friendly smile at tortilla, a heartfelt thank you from our cashier, clean dining rooms and drink stations, and great guest on-site recovery for any issue,' he explained. Chipotle reported a strong start to the year with revenue reaching $2.9 billion in the first three months of the year. However, its same-restaurant sales fell 0.4 percent in the same period and transactions fell 2.3 percent, reflecting consumers cutting back on dining out. The chain plans to lure back repeat diners with a boost to customer experience rather than any cuts to its menu prices. In fact Boatwright has previously warned that if anything prices would rise following Trump's tariffs. Boatwright told analysts that the company is already making strides on elevating diners experience. Refunds as a percentage of sales and the cost of dealing with customer complaints are both down. The company is also planning to roll out more kitchen equipment to help make order fulfilment more efficient. Customer experience will be a key focus area for the Mexican fast casual The introduction of produce slicers, dual-sided planchas for cooking chicken and steak, three-pan rice cookers, and dual-vat fryers will begin in 100 locations in the coming months before being rolled out nationwide in the next few years. In August, Chipotle also introduced the 'autocado' a machine able to peel, stone and cut an avocado for guacamole in 26 seconds. Meanwhile, a 'digital makeline' portions up salads and bowls based on orders on the app. 'The end goal is to improve the experience for our teams by making tasks easier to execute, more efficient, faster and more consistent while maintaining our high culinary standards,' the CEO explained on Wednesday. Chipotle's plans are similar to the turnaround efforts at Starbucks. CEO Brian Niccol, who formerly held the top job at Chipotle, has asked staff to boost customer experience by writing messages on their coffee cups. However, the plans have already sparked a backlash among baristas who claim it slows down orders and feels 'forced.'
Yahoo
28-04-2025
- Business
- Yahoo
Have Investors Lost Their Appetite for Chipotle Stock?
Given Chipotle's (NYSE: CMG) recent stock performance, one has to wonder if it's still reeling from the sudden departure of former CEO Brian Niccol last summer. Eight months after Scott Boatwright became the company's new CEO, the stock is now down over 25% from its high. Despite the uncertainty such a transition brings, it's not necessarily clear why the restaurant stock is suffering. Is it down because of temporary factors, or do investors need to start taking a more negative view of the company? Let's take a closer look. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » At first glance, the CEO change looked like something that might have minimal impact. Boatwright had been the chief operating officer since 2017. Since he presumably played a role in the changes made by Niccol, that fact alone makes any significant changes to the company's successful business strategy less likely. However, the results from the earnings report for the first quarter of 2025 might leave investors concerned about the state of the business. Chipotle experienced an annual comparable-restaurant sales decrease of 0.4%. Boatwright blamed consumer uncertainty for the slowdown. Indeed, it's a considerable pullback from the 7.4% comparable-sales increase in 2024 and even the 5.4% yearly rise in comparable sales in Q4. Also, Chipotle increased its restaurant count to 3,781 in Q1, a 12-month increase of 302 locations, or around 8%. With that, it reported $2.9 billion in Q1 revenue, but that 6.4% increase indicates Chipotle has lost some traction on a per-restaurant basis. When factoring in operating costs, its operating margin in Q1 rose to 16.7% versus 16.3% in the year-ago quarter. Hence, even though its income tax expense rose, the $387 million in net income was an 8% yearly gain. Nonetheless, the company predicts comparable-restaurant sales growth will stay in the "low single digits" for the year. That leaves shareholders wondering whether they'll have to adjust to lower growth numbers in future quarters. Unfortunately, shareholders seemed accustomed to the higher growth rates of past quarters. Over nearly every period of three years or more, Chipotle stock typically outperformed the S&P 500. Still, that changed in July of last year, two months before Niccol stepped down as CEO. Although the stock rose following his departure, it has steadily pulled back since December, and is now down 15% over the last 12 months. Furthermore, the company's valuation is a concern due to the slowdown. Its price-to-earnings (P/E) ratio is 45, which is at the lower end of its range over the last five years. Chipotle has consistently been a pricey stock, but investors typically dismissed the valuation thanks to double-digit revenue growth. However, you might now wonder whether the recent drop is due to a compressed valuation. Remember that more mature restaurant stocks, such as McDonald's and Niccol's current company Starbucks, trade at 28 times and 27 times earnings, respectively. Maintaining Chipotle's high P/E will likely be a challenge. If growth slows permanently, that increases the chance of its valuation matching those of its more mature peers, presumably meaning a pullback of approximately one-third from current levels. Even if the stock doesn't fall that far, that differential indicates the share-price decline may continue. Nonetheless, its relatively smaller size may help Chipotle compared to its larger peers. The number of Chipotle locations is less than one-tenth of either of these companies. That makes it easier to grow its footprint at a higher percentage rate. Also, it plans 315 to 345 new locations in 2025 and has announced plans to open restaurants in Mexico. That indicates it can maintain its rapid pace of expansion, and possibly continue to command a premium valuation. For now, you should probably regard Chipotle stock as a hold. Admittedly, it continues to offer a compelling value proposition, amid a rapid expansion that's on track to continue. Still, the company faces considerable uncertainty amid its leadership change and a sluggish economy, and the subsequent slowdown in sales growth seems to have worried investors. Furthermore, Chipotle's P/E ratio may seem more appropriate for its more rapid growth in past years. Until you can either buy the stock more cheaply or identify a path for more rapid growth, you might want to refrain from adding shares. Before you buy stock in Chipotle Mexican Grill, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chipotle Mexican Grill wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Starbucks. The Motley Fool recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Have Investors Lost Their Appetite for Chipotle Stock? was originally published by The Motley Fool Sign in to access your portfolio
