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MBA733 Chipotle Presentation

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MBA733 Chipotle Presentation
MBA 733, Prof. Rhoton
Ronetta Engram, Benham Kermani, Alycia
O’Connor, Michele Robinson-Hill
June 25, 2014

Founder, Steve
Ells

After attending the Culinary Institute of America, founder Steve Ells original wanted to own a fancy, white table cloth restaurant, so in 1993 he started Chipotle to make the money to do so.
Even after the initial expansions from the first Chipotle restaurant in Denver. Ells still was thinking about cashing out and going into the fine dining business. When the burrito business took off extremely quickly, Ells decided to stick with burritos.
“There is no secret menu, employees are required to make whatever you order from their ingredients.” The goal was simple: to serve high quality, delicious food quickly with an experience that not only exceeded, but redefined the fast food experience. The founder of the company, which is now estimated to now be worth over $15 billion.
In review of the financial records you will see Chipotle's recent sales growth trends demonstrate conclusively that it has the potential for continued growth. It is generating plenty of free cash flow and growing sales per restaurant, which drives long-term margin growth. In the long run,
Chipotle stock is likely to reward patient investors with huge gains. APA:

15 Things You Didn't Know About Chipotle - The Huffington Post. (n.d.). Retrieved from http://www.huffingtonpost.com/2014/01/28/chipotle-things-you-know_n_4658711.html_br

A

company on the rise shown with major changes in the balance sheet:
◦ Cash & Cash Equivalents: 4x growth
◦ Total assets: $825m (2008) to $1425m (2011)
◦ Total liabilities: +$70m (2010-2011)
◦ Retained earnings: 4x growth
◦ Stockholder’s equity: +$421m (2008-2011)

BALANCE SHEET

Current

Ratio: Measures the ability to pay current liabilities as they come due.
Measures liquidity.
Debt Ratio: Indicates the percentage of the company financed with debt
(liabilities). Measures solvency.

CURRENT/DEBT RATIO
Holtzman, M., Schoenebeck, K.

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