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.
However, I do know this is one of the goals they are working towards. Furthermore, the company is efficient at measuring their diversity goals. As proven earlier, the company measures diversity’s impact by the “representative mix on the board of directors” (CanÌas, Sondak 2014). However, other ways the company measures their success through satisfaction surveys, the percentage minorities hired and by setting number goals, such as hiring 25,000 veterans and military spouses by 2025. Finally, Starbucks successfully employed the “expansive external relationships” (CanÌas, Sondak 2014).
In the third panel of their ads, Dunkin’ Donuts talk about how their coffee is the solution to a “crazy morning”, “commute”, and “life’s daily chaos”. This is a declaration from the company that their product is target toward everyday drinkers. Looking at this segment, the most prominent features we can identify is that this is an attractive, stable, and sizable market that can produce good profit. On their study of Coffee Drinking Statistics (2015) of America, Statistic Brain Research Institute shows that there are 100 million American who drink coffee daily. 29% of whom go to lower-price outlets such as Dunkin’ Donuts or McDonald).
It is an American company founded in 1971, it is a leading retailer and marketer of specialty coffee around the world and according to (Starbucks, 2016) it has a majority of market share having 32,8% in U.S. alone. This is a brand that has grown from a small retailer to a multibillion-dollar company and gained global recognition and worldwide success. Starbucks has opened over 20,000 operated and licensed stores in 70 countries and currently has employed over 180,000 employees (ibid.). Starbucks product assortment consists of premium coffee, high variety of beverages, fresh food and healthy snacks as well as offering an upbeat environment in their coffee shop. This research paper uses SWOT as analytical tool to examine internal and external factors, which affect the operation process of this coffee industry leading company.
Starbucks is likewise the most perceived brand in the café portion and is positioned 91st in the best worldwide brands of 2013.Starbucks adequately influences its rich image value by promoting items, permitting its image logo out. Such solid business sector position and brand acknowledgment permits the organization to increase noteworthy game changer in further venturing into universal markets furthermore help register higher development in both residential and worldwide markets. Through the years, they have attained to critical economies of scale with predominant circulation channels and supplier
Analysis External Environment Facing Chick-fil-A The industry. In 2011, quick-service restaurants was poised to reverse the trend of three-years of declining sales, to achieve over $167 billion in sales, a gain of 3.3% over 2010. CFA is a strong performer in this segment, posting a sales of $4 billion, an increase of 13% over 2010,
Walmart is present in over 27 counties and was regarded as one of the three largest corporations in the world according to the 2012 edition of Business magazine. Moreover in the same year it was featured in being one of the 25 global retail brands. After becoming the part of Wal-Mart Asda has seen gradual increase in its sales making it the second biggest retailer in the UK. Succeeding the acquisition, Asda started converting all its stores to Wal-marts supermarket format and introduced “Price Rollback”. These low pricing strategies lead to Asda having success and positive outcomes as a result.
STARBUCKS SINGAPORE 1.0 INTRODUCTION Originated in United States (US), Starbucks selected Singapore as the third international market to expand its business in 1996. It offers all-embracing products of coffee, handcrafted beverages, light food, merchandise and consumer products as well as an exclusive Starbucks experience to the customers. Starbucks Singapore prides itself on the 100th store expansion in 2014 (Priscilla, 2014). The company is staying ahead in the Singapore coffee chain industry, yet it is facing numerous emerging challenges in the global competitive environment. 2.0 PESTEL ANALYSIS A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives.
1.1 Company background 1.1 Introduction and financials to the company Gatorade is one of the main brands of PepsiCo, the third largest company in the world with net revenue of 62.8 billion in 2016 and a long term record of profitability, stability and growth (Statista, 2017). PepsiCo’s mission is to be the principal consumer product company in the food and beverage industry whilst providing financial remunerations and development opportunities to its employees, partners and communities (Pepsico, 2017). The company has had an above-average dividend yield over the past five years of 2.73%. The lowest was 2.44% on 2nd December 2014 whilst the maximum was 3.13% on 28th December 2012. Moreover its revenues-per-share have grown at 9.7% a year
Furthermore, people consuming around three cups a day have the largest reduction in relative risk of early death than non-coffee drinkers (“Coffee”). Compounds of coffee can have healing and positive effects on the human organism, reduce the risk of diverse diseases, such as Alzheimer’s, hepatitis, colon and skin cancers (Drayer). The right combination of components leads to better insulin sensitivity, helps the liver to function correctly and can decrease some chronic inflammation (Drayer). Moreover, the recent research approved hypothesis: coffee increases life expectancy. The article “Coffee Has Health Benefits” in The Eastern Eye says, “ The research, which collated evidence from more than 200 previous studies, also found coffee consumption was linked to lower risks of diabetes, liver disease, dementia and some cancers” (“Coffee”).