Chipotle Weaknesses

As demonstrated in Exhibit 1 on page 143, the company’s total revenue increased from $1.085.782 million dollars to $3.214.591 million dollars in less than seven years. Beginning at the end of 2007 through the end of 2013, Chipotle’s Mexican Grill total revenues increased at a CAGR of 19.83%. The new provided catering program, the six elements of their strategy adapted to other cuisines (ShopHouse Southeast Asian Kitchen) and the growing number of new restaurants are decisive aspects in increasing revenue yearly.

The age old debate: is Chipotle or Qdoba the better fast food Mexican restaurant? Of course, one could choose from many pros and cons for either side, but my goal was to dig down into the debate. Which restaurant has a better atmosphere? Which one has better ingredients? Are there more options at one than another? Which restaurant gives it’s customer more bang for their buck? Although I may be biased because I work at Qdoba, I’ve thoroughly researched each restaurant and come to a conclusion. Each restaurant brings many different options to the table, but in the end Qdoba is far superior to Chipotle in many ways.

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.

It is a bit strange that Chipotle, a restaurant chain that has done the most work to align itself

After carefully analyzing the different alternatives, the best course of action is to continue to compete effectively on differentiation based on quality and sustainability given the mounting competitive and sourcing challenges. Even thought Taco Bell’s new menu seems like a significant threat they are far from creating the same value and reputation Chipotle has created since it opened its first restaurant in 1993. Not only does Chipotle provide the freshest and best ingredients with a bold flavor, they are setting themselves apart from any other restaurant chain and main competitor since they

Chipotle Mexican Grill Inc. (CMG), the market leader in the Mexican-style fast casual dining sector, faces direct competition from four other companies. These include Qdoba Restaurant Corporation; Fresh Enterprises, LLC; Mswg, LLC; and Rubio 's Coastal Grill. Chipotle also competes on a less head-to-head basis against

re strong competitors and Yum! Foods leads the industry it is my recommendation that any investments be made in Chipotle.

The number one strategic issue for Chipotle is continuous and cost-effective supply of organic and ethical ingredient’s. It is recommended that Chipotle should develop stronger relationship with suppliers. It can do so by personalizing the relationship and by doing business with suppliers who share the company’s vision. Chipotle can also involve suppliers in its business to motivate them. For instance, Chipotle can offer stock options to suppliers in Chipotle or it can launch a product together with the supplier so that the supplier is as invested in Chipotle’s success as Chipotle.

I choose to explore Chipotle for this assignment because this brand has become a staple in the fast food industry in what I perceive a very short amount of time. I am currently a loyal customer of Chipotle, I have been eating at this restaurant for about 7 years now. I perceive this brand to represent quality fast food, consistently.

"We are hosting a national team meeting to thank our employees for their hard work through this difficult time, discuss some of the food safety changes we are implementing, and answer questions from employees," Chipotle spokesperson told ThinkProgress in an email.

Czarnecki published an article in PRWeek on January 5, 2017 that consisted of the timeline of Chipotle’s crisis. This timeline is easy to follow and provides links to further detail. It starts off on November 1, 2015 when Chipotle temporarily shut down dozens of its West Coast locations after public health officials linked the restaurant to an E. coli outbreak. The last event posted was on December 16, 2016 when Chipotle and Ackman reached a settlement that gave his firm two seats on the company’s 12-member board. Czarnecki discusses how this PR crisis damaged their reputation and failed to get customers back into stores. Czarnecki also discussed the key takeaways. These include that although CGI shorts are cute, they don’t fix the problem

Company has been, utilizing the concentrated growth strategy by providing incentives to the current customers and attracting new clients by introducing promotions and price discounts through multiple programs such as “Chiptopia”, BOGO etc. “Chiptopia” qualifies the user for a free entrée after the multiple purchases of Chipotle products. 1 The BOGO (by one get one) program focuses on the discounts towards the professional members of the community such as nurses, teachers etc. 2

Chipotle’s cuisine is Mexican. Their menu consists of burritos, tacos, burrito bowls, and salads prepared with fresh ingredients employing classic cooking methods. The customer proceeds down an assembly line choosing the

In the same way, some components of Chipotle’s business strategy include internal and external components that can help company to achieve organizational mission, strategic goals and so on. The main components of Chipotle’s business strategy are suppliers and customers. According to the data given in the case, the advertising spending has reduced 2.1million from 2009 to 2011. The company expands their brand through word of mouth instead of traditional media like TV. They hope use those budget expenses to feedback to customer.

As Chipotle does not pay out any dividends, the Dividend Discount Model will not be able to serve as a good valuation method of the company’s value. On the other hand, investors should also look at the FCFE model when considering a stock purchase. Based on the valuation, Chipotle stocks are certainly overvalued, but there are still many factors we can look at, such as the fact that Chipotle is a premium brand in the fast casual industry. A detailed company analysis and valuation as well as explanation on the past, current and future growth of the company has been conducted. We are confident that Chipotle will continue to gradually regain more of its market share as they further expand into international markets. As Chipotle is just recently