Chipotle Financial Analysis
Part 1: Company Information:
The company selected for our financial analysis project is Chipotle Mexican Grill. Chipotle (for short) is a company that is a major player in the fast food and restaurant industry. The name “chipotle” is derived from the Mexican Spanish name for a smoked, dried Jalapeno pepper. The restaurant sells large burritos and bowls in an assembly line production system where all the condiments are arranged and all the customer has to do is request what they want their burrito to consist of. This in turn lends itself to an air of individuality (creating multiple combinations and choices for the clientele). The Corporation trades under the ticker symbol CMG on the New York Stock Exchange. The most recent Fiscal Year End was December 31st 2011 and traditionally the end of the fiscal year/end of the fourth quarter is when Chipotle earns the greatest amount of revenue. The Company is headquartered in Denver, Colorado and was incorporated in Delaware in 1993. Chipotle’s major competitors include Cheese Cake Factory, Baja Sol, Boston Market and Qdoba to name a few.
The company prides itself in the use of all natural ingredients as none of their condiments from the peppers to the meat are chemically engineered. In other words, a large percentage of the company’s food sources are raised naturally without fertilizers or “steroid feeds” that induce accelerated growth in the livestock. This is also evident in their mission statement aptly called FOOD WITH INTEGRITY.
BRIEF COMPANY HISTORY
The company was founded in July of 1993 by current CEO Steve Ells. Mr. Ells graduated from Culinary Institute of America in Hyde Park, New York after which he spent two years as a line cook at Jeremiah Tower at Stars in San Francisco, California. Although Chipotle is a Delaware Corporation, the first Chipotle was founded in Denver, Colorado, in a former Madison Ice Cream Store near the University of Denver campus using a loan of $85,000 which he received from his
The company selected for our financial analysis project is Chipotle Mexican Grill. Chipotle (for short) is a company that is a major player in the fast food and restaurant industry. The name “chipotle” is derived from the Mexican Spanish name for a smoked, dried Jalapeno pepper. The restaurant sells large burritos and bowls in an assembly line production system where all the condiments are arranged and all the customer has to do is request what they want their burrito to consist of. This in turn lends itself to an air of individuality (creating multiple combinations and choices for the clientele). The Corporation trades under the ticker symbol CMG on the New York Stock Exchange. The most recent Fiscal Year End was December 31st 2011 and traditionally the end of the fiscal year/end of the fourth quarter is when Chipotle earns the greatest amount of revenue. The Company is headquartered in Denver, Colorado and was incorporated in Delaware in 1993. Chipotle’s major competitors include Cheese Cake Factory, Baja Sol, Boston Market and Qdoba to name a few.
The company prides itself in the use of all natural ingredients as none of their condiments from the peppers to the meat are chemically engineered. In other words, a large percentage of the company’s food sources are raised naturally without fertilizers or “steroid feeds” that induce accelerated growth in the livestock. This is also evident in their mission statement aptly called FOOD WITH INTEGRITY.
BRIEF COMPANY HISTORY
The company was founded in July of 1993 by current CEO Steve Ells. Mr. Ells graduated from Culinary Institute of America in Hyde Park, New York after which he spent two years as a line cook at Jeremiah Tower at Stars in San Francisco, California. Although Chipotle is a Delaware Corporation, the first Chipotle was founded in Denver, Colorado, in a former Madison Ice Cream Store near the University of Denver campus using a loan of $85,000 which he received from his