Critical Analysis Of Chipotle

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Chipotle has been an established player in the Mexican casual fast food industry since 1993. They are currently the 2nd largest Mexican fast food restaurant, only behind Taco Bell in terms of sales.1 Chipotle sells its product as one of the freshest, highest quality Mexican establishments with the convenience of ordinary fast-food. They offer premium ingredients all sustainably sourced. Despite being the second largest Mexican fast-casual restaurant, Chipotle’s revenue reached $3,904,384 in 2016 growing 42.95% since 2012, gaining a huge portion of market share in the process.2 While EPS may have dipped from $8.82 in 2012 to $.78 in 2016, it quickly recovered to $6.19 in 2017 and revenue reached 2015 levels again at $4,476 million.3 Chipotle’s…show more content…
Supply chain oversight led to a past E Coli outbreak at some Chipotle stores, leading to a formal investigation by the FDA and plenty of negative press.7 Chipotle was never able to fully identify the cause of the outbreak, meaning outbreaks like this in the future are possible. Chipotle suffered greatly from its first outbreak, seeing a revenue decrease of 13.26% during the height of the outbreak, from 2015-2016. If Chipotle is unable to strengthen its supply chain, future outbreaks will likely cause crippling revenue (and customer)…show more content…
The new restaurant is called U.S. Taco Co. and, due to Taco Bell being owned by the Yum Brand, Taco Bell will have plenty of resources for opening its new chain and rapidly growing.8 Other chains in the fast-food industry, especially Chipotle and Qdoba, will have to strengthen their product in order to maintain their current success. Comparing Chipotle and Qdoba’s Strategies for Success Chipotle tries to gain success by focusing on the ethical and wholesome ingredients that they use it their food. This appeal is for a greater consumer base in eco- friendly areas and lock them down because there isn’t another ethical company serving casual fast food. Qdoba focuses on trying to appeal to customers by focusing on the quality of the food. Qdoba’s appeal is to the customer who savor’s a more hearty meal, and most of their advertising has focuses on grilling as a way to emphasize their food. The recent acquisition by Apollo will give them a new fresh set of eyes to improve on their business. Analysing both of these competitors stocks show a low performance in the last year despite the rest of the market having all time

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