Essay on Chipotle and its Economics - Complete with graphs, statistics.. etc.

Chipotle’s operating income increased from $108.2 million in 2007 to $532.7 million in 2013. This produces a CAGR of 30.43%. Rising market prices for natural meats and organically grown ingredients led to Chipotle’s rising costs for food and beverage from 31.9% of revenues in 2007 to 33.4% in 2013 and a CAGR of “only” 30.43%. Besides the operating income, the operating profit margin increased almost every year (10% in 2007, 13.4% in 2009, 15.7% in 2010 and 15.4% in 2011). In 2013 Chipotle had a profit margin of 16.6%, while in 2012 the profit margin was 16.7%. This effect should not be exaggerated, as the total revenue and operating income in 2013 was still higher than the total revenue and operating income in 2012. In addition, the net income almost quintupled from $70.6 million in 2007 to $327.4 million in 2013, generating a CAGR of

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.

In 2012, the restaurant industry was a $435 billion dollar industry (Tristano, 2013).This amounts to a very large market that Chipotle has the opportunity to capture. In that same year the casual Mexican restaurant market totaled a whopping $31 billion in sales (Tristano, 2013). This was a 13% increase for the casual Mexican restaurant market and only amounted to 7% of the entire restaurant market. According to Tristano’s (2013) research, Chipotle Mexican Grill was the second fastest growing fast casual restaurant of all the fast casual restaurant markets in 2012.

The actions taken by Chipotle after the E.coli outbreak can be seen as both exacerbating the problem and finding ways to resolve the problem. However, as the crisis began, leadership coming from CEO Steve Ells and Co-CEO Monty Moran painted a picture of denial. One of the first decisions made in reaction the crisis was to purchase full-paid advertisements. This marketing tactic was done to mask the severity of the e-coli outbreak, sooth investors, and retain loyal customers. In addition to television advertisements, Chipotle decided to advertise using direct mail (Wahba, 2016). This practice does not correlate with traditional chipotle advertising; their last paid advertisement was in 2012. Chipotle has always operated in a fashion that let

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.

Chipotle was founded by Steve Ells in July of 1993 and in 1998 Mcdonalds was a major investor but, in 2006 they withdrew from Chipotle. Chipotle is one of the most famous fast food restaurants is the Unites States. In 2016 there was 2,250 restaurants in the U.S. alone. It is a nice, fast, and easy way to get dinner or lunch for you and your family. That’s why Chipotle is one of my favorite places to eat.

Chipotle is facing numerous challenges due to the fact that E. coli outbreak which requires the corporation from the key stakeholders to keep it under control and apply the new food safety protocols which can aid to bring the regular customers back. Although the main cause remains a mystery, Chipotle’s E. coli outbreak has been authoritatively declared officially over by the experts. However, since the poisoning outbreak, the impact of the reduced number of customers affects the profit which the company used to enjoy before such eventuality (Scholes 27).

(Disclosure ,2008) In Chipotle's SEC filing they disclosed the prospectus statement, financial data, and future plans. Through there prospectus statement Chipotle makes it clear that they are set apart from other chains by serving "Food with Integrity". However, there are risks involved in investing, they are as follows: the number of new stores rapidly being established, lack of independent operating history, ability to continue to grow and profit, and health and safety concerns regarding the ingredients used among others. Although the risk factors are in place, Chipotle's financial data provides more assurance of returned profit on investment. In their "Rapidly Improving Financial Performance" section of the SEC filing they state a 130% increase in revenue in 2004 of 470.7 million up from 2002 and 49% up from 2003. And, average sales in new restaurants after 90 trading days increased 24.9% a total of $303,390. From 2002-2004 Chipotle opened a total of 237 stores. Their increased financial growth is attributed to "word-of-mouth" sales and quicker implementation of Chipotle culture in the area of the new restaurant. Also, more people are aware of Chipotle, thus increasing average opening sales.( Form S-1/A ,2005) The future plans of Chipotle is to expand operations and sales by opening new stores. They forecast opening a total of 75 stores in 2005 of which 58 were already opened at the time of the SEC filing. In order to expand sales they plan to

The Chipotle Mexican Grille opened its first store in 1993 beginning a new category in the restaurant industry known as “fast casual” (About Us, 2014). This new category featured the “highest quality raw ingredients, classic cooking methods, and distinctive interior design-features that are more frequently found in the world of fine dining.” However, aside from the normally long wait in lines, an order could be taken and served in only a couple minutes. Currently Chipotle operates more than 1,500 restaurants internationally. The following pages will present a balanced approach to the effectiveness of Chipotle’s strategy analyzing financial performance, customer satisfaction, employee/learning and growth, and internal process.

Chipotle’s quick ratio is 3.28, slightly lower than its current ratio. Yum! Foods quick ratio is .62, which is also slightly lower than their current ratio. Both ratios are acceptable as long as A/R is not expected to slow. Chipotle appears to be a significantly stronger company than Yum! Foods. The industry average is not given.

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

Management is the backbone of any good company. In order for a company to successful, a strong management team is needed in order to meet goals in an effective and efficient manner. Chipotle opened its doors in 1993 when Steve Ells took a chance and began his business in San Francisco. Chipotle is a chain of Mexican restaurants that is based in Denver. Chipotle is often cited as the company that started the fast casual movement where customers can get a healthy prepared meal quicker than other traditional styled restaurant. The fast casual restaurant concept was well received and Chipotle’s popularity expanded all across the United States. Customers could not get enough of the Mexican chain and massive lines could be seen stretching outside the stores all across the country. Along with its popular food, Chipotle Mexican Style Grill is a company that contains a successful management style. Why? What sets this companies management apart from the rest? There are many factors that we could analyze to understand the success of Chipotle, yet for the purpose of this paper, we will look into the cooperate culture of the company, human resource management, their leadership style, and how Chipotle deals with and how the company manages in times of crisis.

Steve Ells is the founder and CEO of Chipotle. Steve is a trained chef and opened his first Chipotle store in 1993 at a former Dolly Madison ice cream store in Denver, Colorado. His goal was to serve high quality, delicious food quickly and in a “fast-casual” setting (Ells).

Chipotle’s “Back to the Start” advertisement captures the sentiments of the audience by depicting Chipotle’s competitors’ practices as unethical. In both “Back to the Start” and the “Scarecrow” advertisements, Chipotle attempts to align itself with society’s growing belief that humane agriculture is better. Chipotle’s advertisements present their practices to be ethical, which sets its products apart from its competition. However, Chipotle’s message employs the same sentimental appeals and logical fallacies that are effective in their competitors’ advertisements.

The article that will be used for this analysis is “Supply, demand, and the Internet-economic lessons for microeconomic principles courses” by Fred Englander and Ronald L. Moy. There will be definitions for the following economics, microeconomics, Law of supply and the Law of demand. Another subject that will be discussed is the identification of factors that lead to the changes in supply and demand. In order to better understand what is being discussed going to start with the definitions.