Case Study: Chipotle: Mexican Grill, Inc.
Jorge Sanchez
Florida National University
Strategic Management
Chipotle: Mexican Grill, Inc.
Chipotle Mexican Grill (CMG) is a U.S.-based fast-casual restaurant-chain specialized in Mission burritos and tacos, with a mission statement “Food with Integrity”, the restaurant is emphasized in using naturally-grown ingredients, and good quality food with contributions culled using sustainable farming practices. Founded on July 1993, Chipotle had 16 restaurants, all in Colorado; McDonald’s Corporation decided to invest in the company in 1998, and by the time they fully invest in 2006, the chain had grown to over 500 locations and releases its initial public offering (IPO) in the stock market attracting investors …show more content…
This means that the company’s business model has proven to be more profitable that the rest and has a higher potential of success in the future. This may also lower the company’s riskiness, thus leading to a higher valuation multiple compared to its competitors.
SWOT Analysis
Strengths: Chipotle is recognized by their consumers to offer centralized menu of burritos and tacos with high quality ingredients, classic cooking methods served to customer’s in a timely manner and a unique eating environment. Chipotle provides healthy alternative by using organic ingredients and naturally raised meats. Also, Chipotle is being more environmentally conscious by using recycled materials in the construction of their buildings. Chipotle proposes an online method for the customers who are ordering take out, which provides convenience and faster service.
Weaknesses: Due to using natural and organic ingredients in their food, Chipotle’s main weakness is its higher priced menu compared to that of their main competitors, and availability of specific foods is made scarce during the colder months. Also, having a very limited choice of menu, and availability of raw
Jorge Sanchez
Florida National University
Strategic Management
Chipotle: Mexican Grill, Inc.
Chipotle Mexican Grill (CMG) is a U.S.-based fast-casual restaurant-chain specialized in Mission burritos and tacos, with a mission statement “Food with Integrity”, the restaurant is emphasized in using naturally-grown ingredients, and good quality food with contributions culled using sustainable farming practices. Founded on July 1993, Chipotle had 16 restaurants, all in Colorado; McDonald’s Corporation decided to invest in the company in 1998, and by the time they fully invest in 2006, the chain had grown to over 500 locations and releases its initial public offering (IPO) in the stock market attracting investors …show more content…
This means that the company’s business model has proven to be more profitable that the rest and has a higher potential of success in the future. This may also lower the company’s riskiness, thus leading to a higher valuation multiple compared to its competitors.
SWOT Analysis
Strengths: Chipotle is recognized by their consumers to offer centralized menu of burritos and tacos with high quality ingredients, classic cooking methods served to customer’s in a timely manner and a unique eating environment. Chipotle provides healthy alternative by using organic ingredients and naturally raised meats. Also, Chipotle is being more environmentally conscious by using recycled materials in the construction of their buildings. Chipotle proposes an online method for the customers who are ordering take out, which provides convenience and faster service.
Weaknesses: Due to using natural and organic ingredients in their food, Chipotle’s main weakness is its higher priced menu compared to that of their main competitors, and availability of specific foods is made scarce during the colder months. Also, having a very limited choice of menu, and availability of raw