Panera Bread Co (PNRA), Cosi Inc (COSI): A Bad Second Quarter Yields Great Opportunity

Great investments

All that said, there are some very good reasons to be bullish on Chipotle, aside from the great financials the company reported – after all, it’s the long-term business model that counts. Management has decided to follow other firms like Starbucks Corporation (NASDAQ:SBUX) and Whole Foods Market, Inc. (NASDAQ:WFM) by marketing to socially and nutritiously conscious consumers with Chipotle’s newly-strengthened Food With Integrity Program. Chipotle now labels genetically modified organisms (GMOs) in its food and is seeking to eliminate all GMOs from its product line.

The roll-out of the Sofritas vegan tofu option in California (and soon in select other markets) marks another branch for potential growth. With these offerings, Chipotle Mexican Grill, Inc. (NYSE:CMG) will continue to fortify its position with millenials, who favor companies they view as socially responsible. Millenials are generally at the early end of their earnings (and spending) potential given their age and the labor market – as they age, their spending will drive profits for firms like Chipotle.

Final thoughts

Panera Bread Co (NASDAQ:PNRA) was unfairly punished by a short-sighted Wall Street, which had unreasonable expectations for earnings. The business is growing rapidly in revenue, earnings, and new stores, and now it’s available for (comparatively) cheap. Chipotle Mexican Grill, Inc. (NYSE:CMG) is a little more expensive, but it is also a great long-term holding.