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Financial analysis of chipotle
Chipotle swot analysis 2015
Chipotle Mexican Grill, Inc. case study
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I think Chipotle initially thought the food poisoning was restricted to one restaurant. Unfortunately it was not. After the second incident, testing should have immediately been implemented in all stores. It was positive Chipotle worked with state and federal health officials and conducted the deep cleaning in all restaurants. Other core competencies are being able to shift to healthier food choices that were of value to its customers. Chipotle also was able to create a brand awareness and at the same time educating customers on choosing healthy food. SWOT is strengths, weaknesses, opportunities, and threats. S- Strength for Chipotle is the fast food/fine-dining experience W – Weakness for Chipotle is the fact that very little advertising/marketing …show more content…
An innovative product can increase product differentiation and value (V); can strengthen buyer demands – boosting sales. Another strategy is Chipotles ability to offer organic ingredients at an appealing price point. Moe’s Southwest Grill has franchised restaurants and Chipotle has company owned restaurants. Chipotle’s financial and operating performance: • Chipotle was able to increase their profit margin from 2007 at 10% to 2010 at 15.7%. However there was a slight decrease to 15.4% in 2011 • CAGR – from 2007 – 2011 Chipotle’s total revenue increase at a compound annual growth rate by 20.2% • Net income increased from $70.6 million in 2007 to a high of $214.9 million by 2011 – CAGR (32.1%) • Net cash from operations rose from 2007 at $146.9 million to 2011 at $411.1 million • Ratio improved to 3.18 in 2011 from 2.75 in 2007 • CAGR – 16.1% (average annual sales rising from 1.085 million to 2.013 million Chipotle is in a strong competitive position. Taco Bell is the strongest and has the highest name recognition. Qdoba and Moe’s are the
Revenues of $10,161 million in the fiscal year ended December 2014 was seen by the organization, an increase of 5.3% over 2013.The company 's operating profit was $419 million in fiscal 2014, as compared to an operating loss of $22 million in 2013. Its net profit was $402 million in fiscal 2014, an increase of 34% over 2013 (Sutter Health, 2016).
From 2010 to 2011 there has been a 23.8% increase in gross fixed assets value. The raised funds through long term debts would have been used to enhance assets base of Speedster. This is a very positive sigh of future profitability and capacity of the company. Higher assets should be able to generate more cash inflow...
Chipotle’s Chief Executive Officer, Steve Ells has been reputed for having started the restaurant chain in a unique way which has contributed to its apparent success over its main competitors. Chipotle business has grown exponentially from when it was first formed with most of this growth attributed to the founder’s control process in the business. When Steve Ells first got into the industry, he acknowledged the need for promoting innovation and
Chipotle competitive advantage or Strengths has come from the ingredients that come from sustainable sources. According to the MarketLine article about Chipotle Mexican Grill SWOT analysis "Chipotle serves food using naturally raised meat (pork, beef and chicken) and dairy cattle... in 2014 the company served over 155 million pounds of naturally raised meat." Chipotle cares for their customers because they are not giving us food that has hormones and addictive substances. Their competitive advantage has changed the company culture and mission Statement nowadays they called it now food with integrity, the idea that their food is made with the respect for the animals and the
As you know, Chipotle values our “food with integrity” promise and our customers respect that. However, the recent E Coli outbreak has caused Chipotle’s financial performance and reputation to suffer significantly and staying with our current business model is not our best option. Therefore, I recommend we rebrand and reposition Chipotle to ensure our long-term success.
(2011, March 15). The. Retrieved March 19, 2011, from Fast Casual: http://www.fastcasual.com/article/179973/fast-casual-segment-outperforms-industry?rc_id=312. Form 10-K Chipotle Mexican Grill, Inc. (2011, February 17). Retrieved March 15, 2011, from U.S. Securities and Exchange Commission: http://www.sec.gov/archives/edgar/data/1058090/000119312511039010/d10k.htm#tx129308_27.
Distribution: Chipotle uses distribution centers to gather their industrialized food products and other goods to distribute to
Net Income: The net income applicable common shares go from June 30th: $219,000,000 to September 30th: 290,000,000 to December 31st 2013: 2,001,000,000 to March 31st 2014: 480,000...
As of 2016 there were 2,250 Chipotle restaurants worldwide. (Number of Chipotle Mexican Grill locations worldwide 2007-2016, 2017) Another interesting fact about Chipotle, is that in 1998 McDonald’s started investing in shares of Chipotle and by 2001 they had become the majority shareholder. In total McDonald’s invested over $360 million into Chipotle. (Myers, 2014) Although they have since split ways, the investment McDonald’s made into Chipotle helped to boost the growing power of the new to market concept burrito
Similar to a fast food restaurant, but more upscale with a better dining experience. Ells idea of keeping the menu simple with limited items to prepare delicious food efficiently helped to create a kitchen different from other fast food chains. Food preparation areas in Chipotle’s kitchens are similar to those of fine dining restaurants. Menu items are prepared from scratch and with fresh ingredients. Even the meats are prepped with marinades. Creating such recipes is very labor intensive, but having limited items to prepare assists in keeping the cost down. The focus on menu integrity is one of Chipotle’s advantages and is a key element to their marketing strategy. One way Chipotle is able to control their ingredients and maintain menu integrity is by controlling their suppliers. After working with certain suppliers, they created a list of approved vendors for the individual restaurants to purchase from. One reason was to try and help control costs. Healthier food items cost more and Chipotle wanted to keep the cost of their meals low for their customers, so they built relationships with certain suppliers. Eventually, they began to use distribution centers across the country that only purchased ingredients from their approved suppliers (Gamble, Peteraf, & Thompson, Jr., 2015). This approach separates Chipotle from competitors like Taco Bell. Serving high quality food at a competitive price point against other fast food
When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and
Total revenues: $672 million. Increased by 31%. Revenue share = 40% (Next year = 50%). Data revenues are relatively low at 6% of overall revenue, but low internet penetration of 10% provides significant upside.
The turnover of the company in 2008 was $15,627 million, gradually decreased in 2009 to $14,552 million which again decreased in 2010 to $13,772 million. We can see a gradual drop in the turnover.
In the second quarter of 2013, Net Revenues were $8.6billions (increased by 0.8%). ("Mondelez international reports," 2013) Organic Net Revenues increased by 3.8%, they were leaded by strong/ volume mix of 3.6% points as well as favorable pricing of 0.2% points. ("Mondelez international reports," 2013) Power Brands are growing continually by up of 7.9%, and Milka is posting double-digit increase. ("Mondelez international reports," 2013)
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...