15 April 2015
Chipotle: Mexican Grill Analysis
Chipotle Mexican Grill is a major restaurant in the category of “fast casual food,” which is a 4% makeup of the total restaurant industry. Chipotle saw tremendous growth since its initial public offering in 2006, going from stock prices of $45 a share, all the way to prices of $302.96 in 2012. However, Chipotle has seen its share of downturns over the year and may be in danger of a downward trend. This can be attributed to multiple issues. The emergent of new competitors, or existing competitors with new products, rising costs of product, and lack of innovation could all attribute to a downward turn. All of these will be examined throughout the analysis of the company. Strategic Profile
As mentioned above, Chipotle has experienced great amounts of growth since its IPO in 2006, but they have and continue to see some downturn in stocks prices. However, with this decline they still saw a 41% increase in net income from 2009 to 2010 and 20% from 2010 to 2011. With Chipotle operating in a restaurant segment that only makes up 4% of the entire industry, it is important that they keep stock prices up and net income up as well. This is especially true when there is competition that is providing somewhat equal food at a lower price in Taco Bell, and restaurants that provide basically the same service in places such as Moe’s Grill. The questions is, what can Chipotle do to capitalize on the market and take advantage of opportunities that exist? Chipotle might be in a downward trend at the moment, but that can most certainly be turned around. S.W.O.T. Analysis of Chipotle
One strength that Chipotle has is that they have a well-recognized brand. Chipotle has 1,316 restaurants operating in four countries including the U.S., Canada, the U.K., and France. Especially in the United States, you could ask the majority of the people if they have heard of...
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