Chipotle Swot Analysis Essay

Restaurants and cuisines are seen all over the world today . We knew that we wanted to create something different from your average mexican restaurant by doing so this concluded in the idea of extending our business not only in the united states but around the world .

Chipotle Mexican Grill is a fast casual Mexican Restaurant that operates from the United States. Although the restaurant is specifically segmented to the fast casual Mexican restaurant market, it does not simply operate in this realm. Chipotle is also successful operating in the restaurant market as well. According to the Trefis Team (2014) Chipotle Mexican Grill has managed to take market share from restaurants in the fast food industry.

With the right ingredients, speed, quality and leadership, Chipotle has reinvented the fast-food business. Serving food with integrity has produced big profits.

Chipotle has a moderate level of threat from substitute products. They can have this threat from competitors lowering their products, people buying the ingredients at a grocery store and making it at home, and the price sensitive segment of customers. These three parts are part of what make up this five forces model of Chipotle.

In the year of 2005, the total revenue of Chipotle was $627.7 Million dollars. "Chipotle Mexican Grill Inc. (CMG-$53.50 a share) was a January spin-off with an initial public offering price of $22 -- from McDonald's, the largest retailer of hamburger buns in the world. By year-end 2004, CMG had 387 locations, generated $470 million in revenues and earned 21 cents a share."(Berko) Last year, CMG had 485 locations that produced $627.70 million the growth revenue was at 33.40% in 2005. "pushing tacos, burritos, salads, plus huge helpings of tired rice and boring beans reporting net income of 78 cents a share. This year, CMG expects to earn 71 cents a share and, according to Prudential Securities, CMG will report $1 billion in 2007 revenues (that's a lot of beans) and post higher earnings of 98 cents a share." (Berko) Although Chipotle is at an all time high I believe that it may well be trading its shares at to high of a price. Mcdonalds the best and most efficiently run profitable fast food restaurant is trading their shares at 17 times earnings. Today Chipotle is trading at an outstanding $56.07 Per share. I don't believe Chipotle is worth anything over $30 a share. Although the price of chipotle stock is too high there should still be a hefty revenue at year end 2007. Predictions suggest 1 Billion dollars. For 2005

Another point that reinforces this statement is related to their employees and the way they benefit them in many different ways because from the beginning, they become part of Chipotle by a trainee program and after that if they show that their store is running in a very positive way, they will promote making possible going up the ladder. They

It turns out even Chipotle isn’t perfect. Seventeen Chipotle locations in Minnesota have been linked to a recent salmonella outbreak and are currently under investigation by the state’s health officials.

Have you ever tried the best tasting fast food Mexican restaurant on the market? It is called Chipotle. Chipotles restaurant has great service and many excellent choices.

In 1993, the first Chipotle Mexican Grill restaurant (pronounced chi-POAT-lay) in Denver, Colorado was opened by CEO and founder, Steve Ellis after he received $165,000 in investments from a bank loan and his father (Pederson). Ellis, a Culinary Institute of America grad and former chef, started the company’s first restaurant to raise money needed to one day operate his own full-service restaurant (Berta). The company’s menu includes burritos, tacos, salads and burrito bowls (burritos without the tortilla) made with customers’ choices of pork, shredded beef, chicken, steak, beans, veggies, and burrito condiments (sour cream, salsa, etc.) (annual report). When Chipotle was first established, Ellis did not like the restaurant’s closed

Chipotle’s strategy is focus on the selected menu that they can provide best to the customers. Also, differentiate with other fast food restaurant such as Taco bell. Chipotle’s competitive advantage is related with the differentiation. They are in the fast-food market, but offer fresh, local produced ingredient and no hormones added to their meat and other dairy products. Therefore, customers who seek integrity, they will go to Chipotle for Mexican fast food.

Founded in 1993, by Steve Ells, Chipotle has been serving the U.S., U.K., Canada, Germany, and France for twenty-two years. The chain offers a wide variety of options to put on a burrito, bowl, burrito bowl, or tacos. You get the option of what type of meat you would like including chicken, steak, barbacoa, or pork (they also offer vegetarian options). After picking your meat, you can go down the “line” to choose your toppings. From rice, beans, lettuce, guacamole, salsa, and many more toppings, the combinations of tastes are endless!

The first one that employees have to face is the slowing of sales growth throughout the company. When the first quarter ended the company had grown 10.4%, but after the second they had only grown 4.3% which is still is showing growth just at a slower rate then what chipotle envisioned for themselves. One of the biggest battles that Chipotle has been faced with is attracting and retaining employees to their company. They are having trouble with this due to the economy and the demand for people to have more restaurant style meals. The supply chain problems that at exist are that chipotle decided that they are going to drop pork because of the way they believe that animals should be raised and treated.

Since 1993, Chipotle has made it their mission to use high quality farm produced products to serve quality “food with integrity” (). In accordance to their 2015 annual report, Chipotle had a net income of $475 million, along with revenues of about $4.5 billion (). Within twenty-three years since the company began, Chipotle now has restaurants all over the world, including “Canada, the United Kingdom, France, Germany, and over 1500 others in the United States” (). “During 2014, Chipotle even opened nearly 200 new locations bringing the 2013 total of 1500 up to 1700 total worldwide locations” ().

Chipotle Mexican Grill, Inc. is a “fast-food service restaurant” under limited service category. It was formed in 1993 and went public in 2006. It has the largest market share in the Mexican-type food segment with a net income of more than

It is also more widely spread geographically. Subway also offers the “choose your own” style of service, but it does not serve organic foods ("Chipotle Mexican Grill, Inc. SWOT Analysis."). Hot Head Burrito is another Mexican style restaurant that would be considered a competitor. These restaurants offer cheaper menu prices, lower-carb options and “diet menus” ("Chipotle Mexican Grill, Inc. SWOT Analysis."). While Chipotle offers none of these things, they have quite a large target market and have grown tremendously just in the last five years ("Chipotle Mexican Grill, Inc. SWOT Analysis.").