While AI has certainly stolen the headlines and investors may have started to use some programs such as ChatGPT over the past few years, many are still skeptical about what AI can accomplish. But many companies are using AI tools to find ways to improve their operations right away.
It’s not just in high-tech spaces where AI tools can be used to improve productivity. AI is making its presence felt throughout the economy and across many seemingly low-tech sectors.
For instance, the food industry may not have a high-tech feel for it. But AI tools can be used to find ways to improve the process.
Chipotle Mexican Grill (CMG) is doing just that, looking to hire as many as 20,000 workers, and using AI to make the hiring process more efficient. Hiring a new employee can represent a high cost, and lowering that cost can help boost returns, especially given the high turnover in the food industry.
Action to take: Chipotle is down nearly 25% from last year’s peak, and finding ways to improve profitability should help reverse that trend and send shares higher. Turnaround investors may like shares here.
Currently, Chipotle does not pay a dividend.
For traders, the July $60 calls, last trading for about $2.15, could see mid-double-digit returns on a trend higher in shares from here.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.