Chris Smith Prof. Jones Business Strategy 15 April 2015 Chipotle: Mexican Grill Analysis Introduction Chipotle Mexican Grill is a major restaurant in the category of “fast casual food‚” which is a 4% makeup of the total restaurant industry. Chipotle saw tremendous growth since its initial public offering in 2006‚ going from stock prices of $45 a share‚ all the way to prices of $302.96 in 2012. However‚ Chipotle has seen its share of downturns over the year and may be in danger of a downward trend
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if they can trust you of this ever happens again and hopefully it won’t. Unfortunately this is a reality for all businesses. For the past few years a crises has happened for most companies. The biggest one that stuck out to me was the Crisis at Chipotle. They kept quiet for a couple days which made people mad until they finally took action. Businesses should not try to let the problem pass until everyone forgets. Even if it’s 1 person that it affected‚ it can spread like a fire.
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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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one restaurant. Today‚ I thought it would be a great idea to eat at Chipotle. The choice of food‚ customer service‚ and amount of locations justify why many would choose Chipotle as their go-to fast-food establishment. Chipotle serves nutritional Mexican dishes that cater to people with dietary needs. An individual picks out the food items that make up one’s meal. One can customize the meal to fit a certain lifestyle. “Chipotle offers a menu of burritos‚ tacos‚ burrito bowls (a burrito without the
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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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and economic differences and possible rivals that can represent pressure or rejection of the market they want to explore. Also‚ they do not use the right strategies and approach to reduce risks or get the benefits of such market. In the case of Chipotle‚ I believe the company failed to appeal its menu to the British community. Just imagine if an authentic Chinese restaurant chain decide to offer real Chinese food at their Americans clients‚ I’m more than sure they will close business due to 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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As many of us have read over the last couple of weeks‚ Chipotle has been plagued with food safety problems. The Mexican Grill restaurant has been linked to 52 people becoming ill due to contaminated food. The company operates on the notion of fast casual restaurant‚ unlike numerous fast food chains. Initially‚ it was difficult to determine where the contamination occurred because Chipotle depends on a more complex supply chain for its 1‚900 outlets that includes scores of small‚ independent farmers
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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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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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