Please ensure Javascript is enabled for purposes of website accessibility

Behind the Disruptive Deal Between Chipotle and e.l.f.

By Rhian Hunt - Mar 4, 2021 at 7:12PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The two companies have some unusual plans for their collaboration.

In a press release today, fast casual restaurant chain Chipotle Mexican Grill (CMG 4.59%) and cosmetics and personal care company e.l.f. Beauty, Inc. (ELF 5.48%) revealed their plans for a rather unusual collaboration. e.l.f. is planning the release of a beauty collection based on Chipotle's food and branding, to include both cosmetics and accessories, entitled the "e.l.f. x Chipotle collection."

"There is nothing tastier or prettier than the combination of burritos and makeup," according to e.l.f.'s Chief Marketing Officer Kory Marchisotto, who added that the two companies "share the same renegade spirit." Both enterprises use popular contemporary approaches to make their products more appealing to consumers, including Chipotle's use of "responsibly raised food" and e.l.f.'s focus on picking cruelty-free, vegan ingredients.

Part of the e.l.f. x Chipotle collection, including eyeshadow colors and an avocado facial sponge.

Image source: e.l.f. Beauty, Chipotle Mexican Grill.

Some of the planned items in the collection include a cosmetics bag made to resemble a Chipotle tortilla chip bag, facial sponges made to resemble avocados to evoke guacamole, and an eyeshadow assortment with colors based on pinto beans, lettuce, various types of salsa, and brown rice, among other Chipotle ingredients.

Chipotle's digital marketing VP Tressie Lieberman points out that a previous collaborative "launch" made with e.l.f. in early 2020 sold out entirely within four minutes of it being made available for sale.

e.l.f.'s stock has soared after two years of continuous growth, while its market share rose from approximately 5% to 6% between the start of 2020 and 2021. The company registered 10% year-over-year sales gains in December, suggesting its run of success isn't faltering yet despite winter and COVID-19.

For its part, Chipotle also enjoyed a profitable quarter, though its stock price has far outstripped its revenue gains. Both stocks were down several percentage points at the close of trading today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Chipotle Mexican Grill, Inc. Stock Quote
Chipotle Mexican Grill, Inc.
$1,402.42 (4.59%) $61.51
e.l.f. Beauty Stock Quote
e.l.f. Beauty
$25.98 (5.48%) $1.35

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.