Financial Analysis: Chipotle
Table of Contents:
Company Background *3*
Industry Analysis *4*
Ratio Analysis *5-8*
Ratio Summary *8*
Recommendations *9*
References *10*
Company Background
Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors. In 1999 they opened their first out-of-state stores in Minnesota and Ohio. As Steve was seeing rapid growth with his company, he was also noticing significant issues with the quality of the food being desired in this industry. After learning how pork was traditionally raised in the United States Steve Ells started his business down a new path. This lead to the concept of “Food with Integrity” , which was as a result of Steve’s decision to sell only the highest quality organic and naturally raised foods. Chipotle Mexican Grill continues to grow rapidly and in 2006 went public on the New York Stock Exchange. By 2012, Chipotle Mexican Grill had over 1400 company-owned stores taking over as the number two Mexican fast food restaurant for total sales in the US market. Today the overall business environment for Chipotle Mexican Grill is very good. The company has grown by over 50% since 2010 and is seeing increases in revenue averaging between 18% and 20% each year. Since going public the company has seen a 4000% return in their stock prices. Chipotle Mexican Grill continues to grow an average of 150+ stores per year. Based on their financial reporting for 2013 they had reached $3.21 billion in revenue. The significant amount of growth
Company Background *3*
Industry Analysis *4*
Ratio Analysis *5-8*
Ratio Summary *8*
Recommendations *9*
References *10*
Company Background
Chipotle Mexican Grill was a concept turned reality by a gentleman by the name of Steve Ells. Chipotle Mexican Grill provides excellent Mexican cuisine driven by a concept of “Food with Integrity”. The first chipotle Mexican grill was opened in 1993 in Denver Colorado. By the end of 1995 there were three. In 1996 alone, Steve Ells opened five more Denver-area restaurants growing by a total of eight stores in three years. By 1998 Chipotle Mexican Grill was showing much promise. In order to meet their growth needs Chipotle took on outside investors. In 1999 they opened their first out-of-state stores in Minnesota and Ohio. As Steve was seeing rapid growth with his company, he was also noticing significant issues with the quality of the food being desired in this industry. After learning how pork was traditionally raised in the United States Steve Ells started his business down a new path. This lead to the concept of “Food with Integrity” , which was as a result of Steve’s decision to sell only the highest quality organic and naturally raised foods. Chipotle Mexican Grill continues to grow rapidly and in 2006 went public on the New York Stock Exchange. By 2012, Chipotle Mexican Grill had over 1400 company-owned stores taking over as the number two Mexican fast food restaurant for total sales in the US market. Today the overall business environment for Chipotle Mexican Grill is very good. The company has grown by over 50% since 2010 and is seeing increases in revenue averaging between 18% and 20% each year. Since going public the company has seen a 4000% return in their stock prices. Chipotle Mexican Grill continues to grow an average of 150+ stores per year. Based on their financial reporting for 2013 they had reached $3.21 billion in revenue. The significant amount of growth
References: Brigham, E.F. and Houston, J.F. (2009) Fundamentals of Financial Management. 12th Edition. Cengage Learning. Chipotle Mexican Grill. (CMG) Balance sheet, Dec. 30, 2013. Yahoo!Finance. Retrieved from https://finance.yahoo.com/q/bs?s=CMG+Balance+Sheet&annual Chipotle Mexican Grill. (CMG) Income statement, Dec. 30, 2013. Yahoo!Finance. Retrieved from https://finance.yahoo.com/q/is?s=CMG+Income+Statement&annual. Oches, Same."The QSR 50 Mexican Segment." (Aug. 2013): QSR. 27 Apr. 2014. http://www.qsrmagazine.com/reports/qsr50-2013-mexican-segment-breakdown. Rebecca S.(9. Oct. 2012): 20 Apr. 2014. http://www.prweb.com/releases/mexicanfood/restaurantsurvey/prweb9985561.htm. Yum! Brands, Inc. (YUM) Balance sheet, Dec. 28, 2013. Yahoo!Finance. Retrieved from https://finance.yahoo.com/q/bs?s=YUM+Balance+Sheet&annual. Yum! Brands, Inc. (YUM) Income statement, Dec. 28, 2013. Yahoo!Finance. Retrieved from https://finance.yahoo.com/q/is?s=YUM+Income+Statement&annual.