Restaurant chain operator Chipotle (NYSE:CMG) has announced multiple investments via its $50 million Cultivate Next venture fund. The fund is focused on making early-stage investments into companies aligned with Chipotle’s vision, and that can help the company accelerate its growth plans.
These investments include Greenfield Robotics, a company focused on regenerative farming, and Nitricity, which is focused on tackling greenhouse gas emissions.
Conventional farming methods can take a toll on nature with soil erosion while posing risks to human and wildlife health. Greenfield is harnessing AI and robotics to provide chemical-free regenerative agricultural solutions. Its autonomous robots can cut weeds between rows of broad care crops, lowering dependence on herbicides.
Nitricity is pioneering a practice of artificial lightning to produce sustainable and cost-efficient fertilizer. Present-day methods of producing nitrogen fertilizer require large quantities of fossil fuels. In addition, the U.S. imports nearly 20% of its fertilizer. Nitricity’s fertilizer offers 5 to 10 times less greenhouse gas emissions than conventional methods. The company plans to launch its first commercial product within the next two years.
Meanwhile, Chipotle is already moving to integrate new-age technologies, such as artificially intelligent robots, into its processes. The company did not disclose the size of its new investments.
What is the Target Price for CMG Stock?
Overall, the Street has a Strong Buy consensus rating on Chipotle. Following a mega 50% rally in the company’s share price over the past year, the average CMG price target of $2,188.88 implies a potential downside of 6.6% in the stock.
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