CHIPOTLE'S CULTIVATE NEXT FUND INVESTS IN AI SUPPLY CHAIN SOLUTION AND EMERGING FAST-CASUAL CONCEPT

Rhea-AI Summary

Chipotle Mexican Grill (NYSE: CMG) has announced minority investments in two companies through its $100 million Cultivate Next venture fund: Lumachain, an AI supply chain platform, and Brassica, a fast-casual restaurant concept. Lumachain, headquartered in Sydney, Australia, offers a traceability solution that tracks food items from farm to table in real-time, complemented by a Computer Vision AI platform for monitoring food production plants. Brassica, based in Columbus, Ohio, serves Eastern Mediterranean-inspired cuisine at six locations, focusing on wholesome, locally-sourced ingredients.

These investments align with Chipotle's mission to Cultivate a Better World and support its growth plans to operate 7,000 restaurants in North America. The Cultivate Next fund, introduced in 2022, aims to make early-stage investments in strategically aligned companies that can accelerate Chipotle's long-term growth.

Positive

• Chipotle is diversifying its investments through the Cultivate Next venture fund
• Investment in Lumachain could optimize management and quality of perishable goods for food service industry
• Brassica investment aligns with Chipotle's commitment to using fresh, real ingredients
• Cultivate Next fund supports Chipotle's growth plans for 7,000 North American restaurants

Negative

• None.

News Market Reaction

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+0.89% News Effect

On the day this news was published, CMG gained 0.89%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

• Lumachain's SaaS platform uses Computer Vision-based Artificial Intelligence to enhance safety, yield, efficiency, quality, traceability, and trust in food production
• Brassica is a Mediterranean inspired sandwich and salad concept committed to wholesome ingredients and sustainable practices

NEWPORT BEACH, Calif., Oct. 15, 2024 /PRNewswire/ -- Chipotle Mexican Grill (NYSE: CMG) today announced it is making a minority investment in Lumachain, an AI supply chain platform, and Brassica, a fast-casual restaurant concept, through its $100 million Cultivate Next venture fund. Introduced in 2022, Cultivate Next makes early-stage investments into strategically aligned companies that further Chipotle's mission to Cultivate a Better World and help accelerate the company's longer term growth plans to operate 7,000 restaurants in North America.

Lumachain
Headquartered in Sydney, Australia, Lumachain's mission is to improve how food is produced, for good. The minority female-founded company has developed a traceability solution that, in real-time, tracks the origin, location, and condition of individual items in a supply chain, from farm to table, enabling reduced waste and increased efficiency. Lumachain's traceability platform is complemented by its Computer Vision AI platform that monitors operations inside food production plants, to improve quality, efficiency and safety.

"The visibility in real time and quality data analytics that Lumachain's software provides could optimize the management and quality of perishable goods for the food service industry," said Curt Garner, Chief Customer and Technology Officer, Chipotle.

Brassica
The Columbus, Ohio based fast-casual restaurant serves wholesome, Eastern Mediterranean-inspired cuisine for guests to personalize their own salads and sandwiches. Founded in 2015, Brassica is committed to using high quality, locally-sourced ingredients at its six restaurant locations. The concept provides healthy dining options without compromising flavor. It includes a front-line ordering experience and a welcoming atmosphere defined by natural materials and standout architectural details. Signature items include house-made falafel, baked-to-order organic pita, antibiotic-free meats, roasted vegetables, Brassica seasoned fries, vegan tahini chocolate chip cookies, and fresh-squeezed minty pink lemonade.

"Investing in emerging culinary concepts that align with Chipotle's commitment to using real, fresh ingredients and making craveable food daily is consistent with our mission to Cultivate a Better World," said Nate Lawton, Chief Business Development Officer, Chipotle. "Funding from Cultivate Next's minority investment will help Brassica scale to open new locations and expand to new markets."

Chipotle's Cultivate Next venture fund portfolio includes: Brassica, GreenField Robotics, Hyphen, Local Line, Lumachain, Meati Foods, Nitricity, Vebu, and Zero Acre Farms. Companies interested in collaborating with Chipotle through the Cultivate Next venture fund can apply by emailing CultivateNext@Chipotle.com.

ABOUT CHIPOTLE
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 3,500 restaurants as of June 30, 2024, in the United States, Canada, the United Kingdom, France, Germany, and Kuwait and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. Chipotle is ranked on the Fortune 500 and is recognized on Fortune's Most Admired Companies 2024 list and Time Magazine's Most Influential Companies. With over 120,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit Chipotle.com.

 

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SOURCE Chipotle Mexican Grill

FAQ

What companies did Chipotle (CMG) invest in through its Cultivate Next fund?

Chipotle invested in Lumachain, an AI supply chain platform, and Brassica, a fast-casual restaurant concept, through its Cultivate Next venture fund.

How does Lumachain's technology benefit Chipotle (CMG)?

Lumachain's technology could optimize the management and quality of perishable goods for Chipotle through real-time tracking and monitoring of food items from farm to table.

What is Brassica, and why did Chipotle (CMG) invest in it?

Brassica is a fast-casual restaurant serving Eastern Mediterranean-inspired cuisine. Chipotle invested in it because it aligns with their commitment to using fresh, real ingredients and making craveable food daily.

How does the Cultivate Next fund support Chipotle's (CMG) growth plans?

The Cultivate Next fund makes early-stage investments in strategically aligned companies that can help accelerate Chipotle's long-term growth plans to operate 7,000 restaurants in North America.