Swot Analysis Of Chipotle

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Chipotle Mexican Grill, Inc. (Chipotle) is a US based company of Mexican food restaurants that developed and operates in the fast casual, fresh Mexican food restaurant industry across the US. Chipotle is the catalyst for this new category of restaurant. Chipotle believes that the idea that food served fast doesn’t have to be typical fast food. The company manages Mexican food restaurants across the US, Canada and London, all under the flagship brand and trademark of Chipotle. Chipotle also focuses on using the best ingredients, and living their mission statement “Food with Integrity”. Their focused menu of burritos, burrito bowls, tacos, and salads; are made to order right in front of you, of high-quality, organic ingredients which are usually supplied by a number of reputable local food industry suppliers. Chipotle also offers the latest in technology trends by utilizing mobile apps and online ordering systems. Chipotle Mexican Grill has its strengths, weaknesses, opportunities, and threats as an industry leader in the fast casual dining establishments.
Company Overview
Chipotle Mexican Grill, Inc. is a chain of restaurants in the United States and Canada specializing in burritos and tacos. Chipotle was founded by Steve Ells in 1993 with the goal of selling 100 burritos a day to be profitable. Chipotle is based in Denver, Colorado and has become somewhat of a phenomenon within the realm of the restaurant industry. Chipotle has experienced tremendous growth since 2006 when the company went public (Lepore, 2011). Chipotle has steadily maintained a strong buy rating by financial analysts in the stock market (Hoover, 2014). Much of the success can be attributed to the ever expanding customer base along with upper level ma...

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...d will probably have better luck getting short term loans from lenders. Chipotle’s debt to equity ratio is extremely low compared to the competitors. At .31 Chipotle is doing very well, Yum Brands at 3.01, McDonalds at 1.59 and Panera at .69 while the industry average is at .77 (http://investing.businessweek.com). With the current ratio, Chipotle has more than enough ability to meet long term loans and if needed, will be able to secure lower interest rates on any new long term loans. The price to earnings ratio, again Chipotle is extremely strong at 55.8. Yum Brands at 26.04, McDonalds at 17.8, Panera at 27.39 and the industry average is 25.03 (http://investing.businessweek.com). With this trending being over two times the industry average, Chipotle will be paying significantly higher dividends and will attract more investors compared to the other companies.

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