Chipotle Mexican Grill Is A Fast Casual Restaurant Chain Essay

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Chipotle Mexican Grill is a fast casual restaurant chain that has locations in five countries. It was founded as a single location in 1993 by Steve Ells. Since then it has grown tremendously to have over two thousand locations. It is one of the most successful fast casual restaurants ever in the services sector of the S&P 500 with earnings over $475,602,000 in 2015, despite some bad media attention. Overall, Chipotle Mexican Grill is a strong company as of 2015. From 2013 to 2015 Chipotle Mexican Grill (CMG) has grown significantly. Its total assets have increased by 35%, and its revenue has increased from $3,214,591,000 to $4,501,223,000. That is an increase of 40%. In addition, CMG opened over 400 new restaurants in that time period. All of that combined shows that CMG is growing very fast. That growth is great as long as CMG’s management is cautious about how its financing the growth. When a company is growing so fast, it is a good idea to look at how it is paying for the growth. A good way to do that is by looking at the current ratio because it shows assets compared to liabilities. CMG’s current ratio over this time period has varied a good bit: 2013 = 3.34, 2014 = 3.5, and 2015 = 2.91. What stands out in that is the decrease in 2015 which could indicate issues with the company. However, after looking more in depth, it can be seen that this decrease is most likely related to the company’s fast growth in that year and its need to finance the growth. In addition, CMG’s

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