Chipotle Mexican Grill (NYSE: CMG ) can use a kick, and a tofu-based protein may be the key.
The burrito roller is expanding its test of Sofritas -- tofu spiced up with chipotle chilies, roasted poblano peppers, and other spices -- as a fifth protein item on its menu. Chipotle made Sofritas available alongside carnitas, chicken, steak, and barbacoa at seven San Francisco locations earlier this year. The test is now expanding throughout Northern California.
If successful, a nationwide rollout can't be too far away.
In this video, Rick explains why Sofritas comes at a great time. Beyond the obvious appeal for vegetarians, vegans, and customers wanting something different, comps at Chipotle have been uninspiring lately. The chain has also come up short on the bottom line in back-to-back quarters. It can use a kick, and tofu may be the answer at a company that prides itself on its very limited menu.
Chipotle's stock has been on an absolute tear since the company went public in 2006. Unfortunately, 2012 wasn't kind to Chipotle's stock, as investors question whether its growth has come to an end. Fool analyst Jason Moser's new premium research report analyzes the burrito maker's situation and answers the question investors are asking: Can Chipotle still grow? If you own or are considering owning shares in Chipotle, you'll want to click here now and get started!