Newest Fast-Food Battle Pits Chipotle Against Burger King
Investors following the restaurant sector would likely list Panera Bread Co (NASDAQ: PNRA), Jack in the Box Inc. (NASDAQ: JACK)'s Qdoba and a few other names in the "fast casual" space as being Chipotle Mexican Grill, Inc. (NYSE: CMG)'s main competitors.
Burger King's new "Whopperito" consists of standard Whopper burger ingredients such as beef, tomatoes, onions, lettuce and pickles inside a tortilla. Bloomberg suggested that the new menu item was created with the intention of "taking a stab at Chipotle" whose name took a hit recently following several foodborne illnesses that were linked to its restaurants.
Burger King's $2.99 new menu item offers consumers the chance to save a few dollars compared to Chipotle's burrito, which sells anywhere from $7 to $9, depending on the region.
"It's certainly one of the first times that we've tapped into the Tex-Mex category," Bloomberg quoted Alex Macedo, North American president at Burger King as saying in an interview. "It's one of the fastest-growing categories — consumers like the freshness of it, they like the mix of flavors."
Ironically enough, Chipotle said in late July that it plans on moving into Burger King's line of business with a chain of burger restaurants called Tasty Made. However, Macedo told Bloomberg that its new Whopperito isn't in response to any competitive activity.
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Latest Ratings for CMG
|Oct 2016||Goldman Sachs||Maintains||Neutral|
|Oct 2016||Credit Suisse||Downgrades||Outperform||Neutral|
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