used in the discounted cash flow analysis. Usually‚ the WACC is the weighted average of the cost of debt (Kd) and the cost of equity (Ke)‚ since debt and equity are the most common sources of funds for the companies. In general‚ the formula for WACC is the following: As implied by the formula itself‚ if a company does not have interest-bearing debts‚ then its WACC would equal to its cost of equity. This is exactly the case of Chipotle. As December of 2016‚ Chipotle had no interest-bearing debt and
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Chipotle Mexican Grill Introduction. Chipotle Mexican grill is an American owned firm which has been in operation for more than two decades. Its main products is tacos and burritos and it is listed on the stock exchange (Fedenia & Hirschey 2009). Competitive advantage A competitive advantage can be described as condition or a factor that enables an organization to offer real or perceived value better than its competitors. (Porter 2008) The first major strength is its product differentiation‚ the
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In 2015 Chipotle Mexican Grill faced an E. coli epidemic in many of its establishments across the country. The fast-food chain has grown rapidly in a short time‚ but the recent bacteria scare is putting strain on Chipotle’s sales. Back in October 2015‚ multiple cases of people getting sick were reported in the states of Washington and Oregon. As of January 2016‚ 55 people had fallen ill across 11 states. Chipotle’s biggest problem is that it had no idea what products were contaminated with E. coli
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TABLE OF CONTENTS Page no. 1. BACKGROUND INFORMATION ON THE COMPANY 3 2.1 Price ‘n Pride 3 2.2 Electric Express 4 2.3 Morkels 4 2.4 Barnetts 4 2. CONTACT DETAIL OF THE COMPANY 5 3.5 Figure 1 5 3. PRODUCTS AND SERVICES OFFERED BY THE COMPANY 6 3.1 Table 7 4. MANAGEMENT PROFILES OF THE COMPANY 8 5.6 Executive Directors 8 5.7.1 David Sussman (Executive
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Chipotle was established in 1993 with the idea to demonstrate that fast food does not have to come with the typical “fast-food” experience. Chipotle’s niche market prefers high quality ingredients that’s healthy‚ tastes good‚ and uses classic cooking methods with unique interior design. Chipotle has changed the fast food market and uses the short and sweet mission statement to “forever provide food with integrity”. The company’s vision statement is “to change the way people think about and eat
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Chipotle Mexican Grill Restaurant Case Analysis Problem statement: In order to secure and promote Chipotle’s market share in the restaurant industry‚ kate is in the position of seeking competitive strategies with feasible implementations. Analysis: * External Environment: 1. General environment: Having global economic downturn‚ most of the businesses performed declining. 2. Industry environment: However‚ QSR outperformed and even expanded in USA. Obviously‚ consumers are heading
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Chipotle Core competency Core competencies are the unique ability that a company acquired when the company initially setting up. It is the inborn competitive advantage that cannot be easily imitated by competitors. When Chipolite was born‚ its owner Steve Ells targeted it as the fresh and healthy fast food which means its products need to be fresh and fast delivery. In current dining market‚ there are three types of restaurants: full service‚ fast food and the restaurant in between. Chipotle belongs
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Chipotle Mexican Grill Chipotle had a very positive second quarter result announced in July. The fast food restaurant chain reported total revenue of $ 1.2 billion that is 14.1 % better than that reported for the second quarter of 2014. This phenomenal growth in revenue has the opening of 48 new restaurants during the second quarter behind it. The total restaurant count for Chipotle now stands at 1‚878. On not considering the new restaurants that were not present till the end of the second quarter
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Internal Analysis In comparison to its biggest competitor‚ Taco Bell‚ Chipotle has the upper hand in terms of taste and quality. Its efforts in serving quality food through sustainable sourcing acts as a point of differentiation among its quick service peers. With its ‘food with integrity’ as its mission‚ it gained the approval of millennials by establishing itself as a fresher and healthier alternative. To integrate its mission into its operations‚ Chipotle has an efficient distribution network
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a) Does Chipotle have any core competencies and‚ if so‚ what are they? Chipotle have their set of core competencies‚ which includes: A focused menu which could be customized by a customer‚ good employee training that results to good customer service‚ being able to utilize fair-trade meats and organic vegetables‚ and creating a restaurant where the kitchen is design for efficient operations and where employees can easily interact with customers. These core competencies have helped Chipotle grow into
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