Sensitivity Analysis The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary. Two of the most important inputs of the valuation are the weighted average cost of capital (WACC) and the perpetuity growth rate. In this thesis, it is assumed that Chipotle would have a WACC of 6.65% and a perpetuity growth rate of 2.84%, which would result in a share price of $443.90 for Chipotle.
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.
Chipotle stated that food that served fast does not necessarily need to have fast-food experiences add on to it. Chipotle insists on using high-quality raw ingredients, classic cooking techniques, and distinctive dining room designs that brings about the experience of fine dining.
Introduction The restaurant industry in the United States had annual sales of $ 631.8 billion and employs 12.9 million people in 2012. Even in times of recession there is little evidence that this industry has seen a decline especially in its fast food and quick service segment. But with a depressed economy with no immediate upward trend in the near future, majority of the customers indicated that they would either curtail their spending on eating or best maintain its current level which is certainly going to affect the future of many restaurants in the industry. Chipotle is part of the fast casual segment of the U.S industry with over 1,600 restaurants.
When eating at Chipotle, there is an upcharge of $1.95 for adding guacamole to the order. On their own, chips and guacamole cost $3.25. The protein choices from Chipotle are reasonably priced at $6.50 for chicken, $7.50 for steak, and $6.95 for pork. Although Qdoba offers free guacamole, the protein prices are higher
Another reason why I love Qdoba Mexican Grill is because of the free extras. In the last year Qdoba has made any additional ingredients you want on a burrito free. Qdoba changed their price structure to all-inclusive in which the price only depended on the type of meat you wanted, but included all of the extras that previously required an additional charge, such as guacamole and queso sauce. Being able to have extra queso on your burrito with no extra cost is something that may people enjoy due to the fact that Qdobas queso is so good.
The most obvious problem is that their staff is often poorly trained. Addressing this problem would go a long way in fixing the other weaknesses which are getting orders wrong, not refilling drinks, taking too long to bring food out and not being consistent between locations. One thing that was evident in this research was that the Auburn location is greatly underperforming other locations. While all locations exhibited some degree of these problems, the Auburn location was by far the worst. This restaurant consistently gets orders wrong which can lead to upset customers and bad word of mouth reviews.
Chipotle is in the fast casual industry where competition is extremely intense since there are so many different dining options. An industry like fast casual restaurants has a very high growth rate therefore there is not just one company that has the market cornered. What sets the restaurants apart is not cost but product differentiation; they position themselves in the market with their slogan of Food with Integrity. Since restaurants in the fast casual industry are priced fairly in the same range Chipotle uses different product features to set themselves apart from the others (parature.com). The first value driver in Chipotle’s differentiation strategy is the product quality; they utilize local farmers who are conscience of the environment.
On the other hand, chipotle has many meat options as well, such as chicken, steak, carnitas and more. There are many options to explore, or you can always go back to your go-to burrito bowl, salad, burrito, tacos, and even a quesadilla burrito from their secret menu! Chipotle has many options to explore, like most other companies weather food or not their are many aspects of that business. Such as financing, health, worker compensation and more.
As far as the question of “are there any Chipotle food items that are toxic to cats and dogs?” my response is a resounding YES, E Coli, Norovirus & Salmonella, those are all toxic to humans and well even though cats and dogs have four legs and fur their internal organs and ours are made up pretty much the same way. Besides their food items are not bland they are heavily seasoned, and will lead to an upset stomach and an unhappy
Since news about the Chipotle food poisoning broke, a lot of people became more concerned about the food they eat. The public began to realize that even renowned brands and giant food chains can also be the breeding ground for the next food related fiasco in town. Because of the two outbreaks of Norovirus (a virus that causes diarrhea, vomiting, body pains and fever among others) in Simi Valley and Boston, two E. coli outbreaks, and one Salmonella outbreak in Minnesota, Chipotle is now facing rapid drops in their food revenue, a decline in their stock value, a criminal investigation and a lawsuit.
Chipotle matches a young peoples life style. In our research we found that while some young people enjoy cooking they find they just don’t have the time to prepare something all that healthy. This is where they turn to something quick and easy without compromising on quality. We found in our findings that half the participants eat out more than five times a week. One of our participants eats out to chipotle 3 times a week!