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.
Chipotle has suppliers that can provide high quality ingredients for their products, for a great price. New entrants will face high cost of ingredients due to the difficulty of finding suppliers. Another factor that creates high entry barriers for new entrants, is the brand loyalty that chipotle has. Chipotle has gain a relationship with their customers, due to the chipotle’s mission and values. Although the threat of new entry is low, innovation can break the barrier of entry and can lower the Chipotles profitability.
Usually fast food restaurants like Chipotle do not have to compete against one another this is because usually a check at a fast food restaurant will range from $7-$11, which means that if the restaurants stay within this price range they are most likely to not lose any customers. Chipotles tread of substitute products does not directly come from other fast food restaurants rather the substitute products would be a sit down restaurant, or the customer deciding to eat at
In 1967 the 100th Taco Bell opens. In 1978 Glen sold 868 Taco Bell restaurants to Pepsico. (“Taco Bell History”). Taco Bell soon was linking marketing with major movies. In 1991 the express business, also known as on the go, was introduced.
Pizzeria Locale was discovered by Steve Ells when it had just one location, and Chipotle decided to become an investor in the concept. Today, Chipotle is a majority owner of seven of them in different locations across four states. Diversification in branded fast food chains may help in generating additional revenue streams, which should benefit Chipotle in the long run. It is also a common way of risk if focusing in one area only, however Steve Ells was more about the service and the way that was provided more than the product itself (burritos, tacos etc.) so
Imagine if somebody wanted to go to a popular restaurant chain or franchise. The person goes to the restaurant and sees that it’s closed on a Saturday afternoon. The person is immediately confused as to why this restaurant would close in the most unlikely time and event. That’s how many people in Washington and Colorado reacted when popular restaurant Chipotle temporarily closed 43 restaurants late last month. The reason: an E.coli outbreak.
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
What is Taco Bell? Taco Bell is a world famous Mexican fast food chain restaurant based in Irvine, California, in the U.S. A subsidiary of Yum! Brands, Inc. Taco Bell was founded by Glen Bell as a small chain of restaurants about more than 50 years ago has now
Taco Bell serves an estimated amount of customers of over 35 million a week. A specific unpleasant picture of this thing called “taco meat filling” began to start a downward of comments, and online criticism had begun. This matter was unforeseen as taco bell was not warned about this before the class action suit was made public. With this day and age social media exploded with comments and pictures making the lawsuit into a trending topic for everyone. This beef debate began trending all over and maybe tarnish taco bell trademark.
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?