Chipotle (CMG) Stock Gains on Facebook Food Ordering Partnership
Shares of Chipotle Mexican Grill CMG popped more than 2% on Friday morning after it was revealed that the company was one of several restaurants partnering with Facebook FB on the social media site’s new food ordering service.
Facebook will now let its U.S. users order food for delivery or take-out directly through its mobile application and website. In a blog post detailing the new service, Facebook said that it has partnered with several chains, including Chipotle, Five Guys, Panera Bread, Jack in the Box JACK, Wingstop WING, and Papa John’s PZZA.
Facebook also mentioned that it has teamed up with food ordering services Delivery.com, DoorDash, ChowNow, Zuppler, EatStreet, Slice, and Olo. Users will be able to order from any restaurants that already take orders via these platforms.
“People already go to Facebook to figure out what to eat by reading about nearby restaurants, and seeing what their friends say about them. So, we’re making it even easier,” wrote Alex Himel, Facebook’s VP of Local.
Facebook has integrated the new “Order Food” section into its “Explore” menu, and users will be able to easily view restaurants in their vicinity, as well as reviews and recommendations from friends.
Facebook shares moved about 1% higher in morning trading Friday. Shares of food delivery platform GrubHub GRUB opened more than 3% lower, but the stock has since recovered.
Nevertheless, GrubHub investors might be worried about increasing competition in the food delivery space. Last month, shares dipped after Amazon AMZN announced a partnership with Olo, a rival platform whose network includes Chipotle and Applebee’s.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
GrubHub Inc. (GRUB) : Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
Jack In The Box Inc. (JACK) : Free Stock Analysis Report
Papa John's International, Inc. (PZZA) : Free Stock Analysis Report
Wingstop Inc. (WING) : Free Stock Analysis Report
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