Consumers Rejoice As Chipotle Confirms Return Of Carnitas
Chipotle Mexican Grill, Inc. (NYSE: CMG) loyalists could breathe a sigh of relief as Brian Sozzi of Belus Capital Advisors confirmed the company could be a few short months away from re-introducing cornitas to its menu.
In an article on The Street, Sozzi quoted Chris Arnold, a Chipotle spokesperson who confirmed the news.
“We have not started receiving pork from the new supplier yet, but should start to see that in the system in the coming weeks,” he told Sozzi in an e-mail. “That should allow us to start rebuilding and get us back to having pork everywhere this fall.”
Chipotle’s pork shortage dates back to January after the company suspended relationships with a supplier that was not fully compliant with its standards. Chipotle demands its suppliers raise its pigs with access to outdoors or deep bedding in barns, and more importantly, not be treated with antibiotics.
Chipotle stuck to its image and reputation by suspending relationship with a supplier, even at the expense of sales. The company’s Chief Financial Officer Jeff Hartung stated during the company’s April conference call that the pork shortage, coupled with bad weather, resulted in a drag of one to two percentage points in its same store sales.
Finally, Sozzi noted that if Chipotle is satisfied with its new supplier, it will steadily increase pork shipments to restaurants throughout the third quarter. The analyst added that Chipotle is anticipates “being back to normal on the carnitas front” during the fourth quarter.
What does this all mean? Chipotle customers along with investors “get some good news”
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