Chipotle Mexican Grill, Inc. CMG continues to prioritize sustainability and innovation by making minority investments in two groundbreaking companies, Plantible and CH4 Global. The investments are stated to be part of CMG’s Cultivate Next venture fund.
Launched in 2022, the fund focuses on early-stage companies that drive Chipotle’s long-term growth, intending to expand to 7,000 restaurants across North America. In addition to Plantible and CH4 Global, the fund has invested in Brassica, GreenField Robotics, Hyphen, Meati Foods, Nitricity, Vebu and Zero Acre Farms. By supporting these trailblazing ventures, Chipotle reinforces its commitment to transforming the food industry and driving long-term growth.
Plantible, founded in 2018, has developed a vertically integrated manufacturing platform to produce Rubi Protein from Lemna (an aquatic plant), commonly known as duckweed. Rubi Protein is a plant-based alternative that mimics the taste, texture and functionality of popular animal-based proteins while replacing synthetic emulsifiers and binders. Plantible’s technology minimizes water usage and carbon emissions, offering a cleaner and more allergen-friendly food system.
This investment underscores Chipotle’s dedication to ingredient transparency and sustainable sourcing practices. Chipotle’s Chief Customer and Technology Officer, Curt Garner, highlighted the potential benefits, stating that Plantible’s vertically integrated and traceable supply chain aligns with the company’s Food with Integrity standards and that it paves the path for unlocking new opportunities in plant-based menu innovations across the industry.
CH4 Global is focused on combating climate change by addressing methane emissions from livestock. The company’s Methane Tamer, a feed additive made from Asparagopsis seaweed, aims to reduce methane emissions in cattle by up to 90%. Chipotle’s investment in CH4 Global will likely aid in scaling the production of Methane Tamer to meet the growing global demand for sustainable solutions. In addition to environmental benefits, this innovative product helps cattle better convert feed into energy, enhancing productivity while reducing their environmental footprint.
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Shares of Chipotle have gained 23.8% in the past year compared with the industry’s 4.6% growth. The company benefits from its digital efforts, Chipotlane add-ons and marketing initiatives. This and strength in digital sales, menu price increases and new restaurant openings have been aiding the company. Chipotle continues to focus on the stage-gate process and leverage digital programs to expand access and convenience. Of late, earnings estimates for 2025 have moved up, depicting analysts’ optimism regarding the stock’s growth potential.
Chipotle currently carries a Zacks Rank #2 (Buy).
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