Chipotle Mexican Grill Is a Long-Term Buy Chipotle Mexican Grill (CMG) has been on a strong run in the past three months as its shares have appreciated to the tune of almost 20%. The company’s strong run is being driven by its improving financial performance. Making strong progress For example, Chipotle’s revenue for the second quarter increased to $1.2 billion from $1 billion in the same quarter last year, driven by an increase in comparable sales growth and new restaurants opened in the quarter. The quarter also included an increase in total operating expenses to $970.4 million from $870.2 million last year, driven by an increase in food, beverage and packaging expenses. However, Chipotle’s revenue growth outpaced the growth in its expenses.
Since the mission of Chipotle was always to provide a new generation of fast food, prepared of high quality ingredients with the most personalized way and within a great distinct environment, maybe more suitable to meet their criteria, ( in a less traditioned way of the “casual dining” of US. The adjustments will have to be made accordingly in order not only to have the correspondence wanted at profit margins but also in order to be satisfied for this
Customers can often choice the place they want to eat, which include fine dinning restaurants, fast food, and eating at home. The customer has the power to change the public perception of chipotle. Recently, the current ratio has fallen along with Chipotle’s revenue due the health cases that the customer experienced. This has lowered the daily number of customers, and makes substitutes more viable. The high power of customer has shown to effect Chipotle and this threat can reduce the overall demand of Chipotle and the fast food
Therefore, Chipotle is seeking better food from using ingredients that are not only fresh, but that are sustainably grown and responsibly raised with respect for the animals, the land, and the farmers who produce the food. Today, Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, high-quality raw ingredients, prepared using classic cooking methods. True to the tradition of French cooking, Chipotle insists on fresh products—not canned, frozen or
Chipotle uses organic produce and free-range and antibiotic-free meats which requires them to work with a few selected suppliers which increases its supplier power. When it comes to the fast food industry which Chipotle plays a part in, Customer Power is a very important aspect of the industry. If customer power is strong, the customer has the power to set the price to what they would like to pay for the product. Customers in the fast food industry demand an experience which is unique and they also demand high quality food. They have the mentality of the customer is always right.
Chipotle Queso: The Key to Happiness Growing up I loved the flavors of Chipotle; the smoky meats, the charred peppers and the blend of delicious sides. One may ask why choose this advertisement for a company like Chipotle, because of the many persuasive images, textual messages, and vibrant visuals found in this mouthwatering piece. I consider this advertisement similar to an urgent announcement in which Chipotle is warning their customers to get excited that they finally have queso. Each and every day society craves food and as we all know, Chipotle competes with multiple restaurants in the mexican fast food field. My question is, what makes Chipotle stand out from the rest?
The reason: an E.coli outbreak. But if that wasn’t enough, the E.coli outbreak is the third foodborne illness outbreak that Chipotle has faced this year. Many people praise Chipotle for its quality food and convenient service. But 3 different foodborne illness outbreaks from August to November of this year are putting the company in a
Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry. The following paper will examine the organizational structure of the Chipotle organization, diagnose problems,
Chipotle Mexican Grill, Inc. Chipotle Mexican Grill, Inc. (“CMG”) is a restaurant specializing in Mexican/Spanish food founded by Steve Ells in 1993 with its first location was in Denver, Colorado. Ells’ mission statement of Food with Integrity, describes the goals of the restaurant to focus on “higher-quality ingredients and cooking techniques used in high-end restaurants to make great food accessible at reasonable prices, while simultaneously, understanding the environmental and societal impact of our business”. In addition, the missions statement, a staple of CMG is to serve naturally raised ingredients such as “ naturally raised pork, beef and chicken, as well as organically grown and sustainably grown produce, and we continue to investigate
Compared Chipotle’s competitive advantages to its competitors in the same industry including Taco Bell, Moe Southwest Grill and Qdoba Mexican Grill, we can see that while there are some competitive advantages are equal and even higher than its rivals’, there are still some competitive advantages are lower such as dealers network * Chipotle does have a net competitive advantage. Firstly, they have a focus menu, along with classic cooking technique, which enhances the taste of the food. Secondly, Chipotle establishes a reputation for using organically high – quality ingredients, which attracts customers because of its consciousness for healthy lifestyle. In addition, Chipotle is famous for its quick and hospitable service. * After the comparison,