Chipotle Case Summary

Decent Essays
This section addresses Chipotle’s sales performance from 2012 to 2016. The following graph exhibits Chipotle’s total sales revenue during this period. As shown in the graph, Chipotle has consecutive revenue growth until 2015. The most impressive increase in revenue took place in 2014, thanks to the increase of customer visits as well as the increase of average expenditure per customer in that year (Chipotle, 2015). Because of the E.coli outbreak during the late 2015, which devastated Chipotle’s sales in the fourth quarter, the increase in revenue in 2015 was comparatively modest and primarily due to new restaurant openings (Chipotle, 2016). In 2016, the company’s sales revenue largely decreased as a result of the E. coli outbreak (Chipotle, 2017). Due to the timing of the incident, the negative impact of the E. coli outbreak is clearly more observable in the financial results of 2016, …show more content…
The next graph displays Chipotle’s average sales per restaurant from 2012 to 2016. As indicated in the graph, Chipotle’s average sales per restaurant increased from 2012 to 2014, reaching the peak of $2.3 million in 2014. Then, the average sales per restaurant suffered a slight decrease in 2015, before dropping drastically to $1.74 million per restaurant in 2016. The slight decrease in the average sales per restaurant in 2015 clearly reflected the negative shock of the foodborne illness outbreak, although the impact is still more prominent in the result of 2016.

Regarding the number of restaurants that Chipotle operates, this number has been growing steadily for the past five years. Chipotle successfully added 840 locations, expanding from 1,410 restaurants in 2012 to 2250 restaurants in

Related Documents

  • Improved Essays

    Whole Foods is a natural and organic market that is seeing growth in this time of change. The company saw a huge 10.5% net income growth from 2013 to 2014 (Annual Report 19). Consumers are no longer looking for the quick, cheap, unhealthy meal and stores like Whole Foods are providing a solution to that. Luckily McDonald’s has been open to change, which may help them recover. As far as numbers go, the company has been struggling for a while.…

    • 1163 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Even during the economic financial crisis in the United States, Starbucks revenue continued on an upward trend. The company’s gross profit showed a continuous rise between the years of 2010 to 2014. Starbuck’s gross profit was under one million each year from 2010-2012. For each year proceeding 2012, the company’s gross profit increased to slightly over one million. Therefore, Starbucks positive increase in profits over the last five years is a great indication that the company is stable and worth investing in.…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    “Chipotle last week estimated that fourth-quarter sales from restaurants open a year or more fell 14.6% -- far more than the 8% to 11% decline it had expected as of early December. Last month’s sales plunged 30% from a year earlier. Chipotle said it expects fourth-quarter earnings of $1.70 to $1.90 a share, down from its earlier forecast of $2.45 to $2.85 a share (Jargon, 2016).” In attempts to win back business, the company sent out millions of direct-mail coupons for free food to gain back its business. The offer will expire on May 15, 2016. The chain stated that it had much success with their most recent promotion of free burritos, with about 5.3 million people who downloaded the mobile coupon in February, and 2.5 million actually redeeming the offer in stores (Peterson, 2016).…

    • 920 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Viacom Growth Strategy

    • 761 Words
    • 4 Pages

    In 2011, this number had only been 7.34 billion, and the biggest jump took place in 2013, when it saw a 3 billion dollar upsurge. Both Viacom’s deferred taxes, credit and debit, decreased however. In 2015 their deferred taxes-credit was 223 million, a full 600 million less than it had been in 2011. Likewise, their deferred taxes-debit decreased more than 700 million, totaling just 45 million in 2015. Another decrease the balance sheet displays, is liabilities and shareholders equity.…

    • 761 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    It is expected to reach approximately Rs.3.8 trillion in sales by 2017. Fast-food joints have the largest market share of 45%. It is expected to grow by 16.6% a year, says the report by consulting firm Grant Thornton India and lobby group Federation of Indian Chambers of Commerce and Industry (Ficci). The second largest market share is from casual dining contributing to around 32% share, expanding at a rate of 10.1% annually. Standalone restaurants comprising 22% of the market, is the fastest-growing sector.…

    • 1111 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    OECD COMPOSITE LEADING INDICATORS (CLI) The OECD system of Composite Leading Indicators is designed to provide early signals of turning points in business cycles - fluctuation in the output gap, i.e. fluctuation of the economic activity around its long-term potential level. Although these charts are from 2014-2015 they continued to follow the same pattern leaving the United States in the same position as China, Europe, and the rest of the world. VII. CHINA INDUSTRIAL PRODUCTION Industrial production in China rose 5.90 percent year-on-year in December of 2015, slowing from a 6.20 percent increase in the previous month and missing market expectations of 6.0 percent growth.…

    • 935 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Tesco Case Study

    • 2607 Words
    • 11 Pages

    Over the last decade Tesco is expanding its business despite recession and downfall of share price in the grocery market. Tesco is known as one of the fastest growing retail giant over the last decade. According to Microsoft 2011, the sale growth of Tesco is slowed from 3.5% in 2008 to 3% in 2009, 2.6% in 2010 and just 1.2% in the first few weeks of 2011. The expansion in Tesco business and minor downfall in sales growth despite recession are interesting factors that forced me to select Tesco Plc for the said assignment Financial Analysis of Tesco plc 3.1 Economic Growth of Tesco The worldwide economic conditions have directly influenced the Tesco performance. But UK’s economic condition has played the principal and major role in its slowed down growth of sale that is indicated by the growth of GDP (Gross domestic product) that has fallen continuously in the years 2008 and 2009 with a slight recovery in 2009.…

    • 2607 Words
    • 11 Pages
    Improved Essays
  • Improved Essays

    Rawhide Brewery Case Study Michelle Weaver Saint Leo University Dr. Kouassi Koucoa GBA 398: DL01 Integrated Perspectives on Business March 19, 2018 This is a case study about two companies trying to improve their profitability. Rawhide was a brewery company based out of Ontario, Canada. In 2011 Rawhide had annual sales of $5.3 million, but in 2009 the company doubled its capacity in operations. Because of this, the company’s operating capacity fell way below normal which caused them to take out a 10-year bank term loan. The chief executive officer (CEO), Andrew Upson was worried that the under-utilization of the capacity would ruin the company in the long run.…

    • 771 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Both, money supply and inflation - with reasonable rates, are the cornerstone for automotive industry’s growth and productivity and vice versa. The strength of the economy’s recovery has been seen in the number of job creation in the last three years. According to the Economic Report of the President “The pace of total job growth rose to 260,000 a month in 2014, up from 199,000 a month in 2013, as shown in Figure 1‑2. As recently as 2013, most forecasters expected that the unemployment rate would not fall to 5.6 percent until after 2017. The unemployment rate declined 1.1 percentage points during the 12 months of 2014, or almost an average of 0.1 percentage point a month, falling to 5.6 percent by year…

    • 1102 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Causes Of Poverty Essay

    • 754 Words
    • 4 Pages

    The local fast-food industry brings in more than R300-billion every year. According to Statistics South Africa, in April 2015 income in the fast food and takeaway industry surged by 13.3%, which is more than double the rate of inflation. The number of new entrants in the fast food industry such as, Burger King, Domino’s Pizza, Pizza Hut, Starbucks, Krispy Kreme and RocoMamas, is a clear sign of this. (McCann, 2016) New entrants in the industry have also contributed to the start of price wars, and specifically pizza lovers are enjoying a variety of specials. Per Insight Survey, 134 new takeaway stores opened in 2014 and that number is set to increase by 14% each year.…

    • 754 Words
    • 4 Pages
    Improved Essays