Chipotle by Steve Ells 1993

Background

Chef Steve Ells founded Chipotle Mexican grill in 1993 in Denver Colorado with the goal of serving delicious food made with the finest ingredients at an affordable price (Peter, 2005). Since it’s opening, Chipotle rapidly became profitable and in 1998 McDonald's Corporation made an equity investment in the company, and thus became its majority shareholder. McDonald’s financial investments allowed chipotle to expand across the country, but McDonald’s divested from Chipotle by 2006 (Milstead, 2014). In the same year, Chipotle completed its initial public offering and was listed on the New York Stock Exchange under the symbol 'CMG'

Steve Ells has been committed to serve fresh ingredients that come from local family farmers (Peter, 2005). Chipotle enjoys great economies of scale so its purchasing power is very influential on suppliers around the country. Chipotle is aware of its purchasing power and helps many local family farmers by partnering with them. By 2005, Chipotle had partnered with over 400 family farmers (Peter, 2005). Its great quality product and affordable prices were also one of the biggest factors that helped Chipotle become one of the fast growing restaurant chains.

Chipotle Size and Line of Business

Chipotle’s menu includes burritos, tacos, burrito bowls (a burrito without the tortilla), and salads, made from fresh ingredients. Chipotle now has 1783 locations, including 1,755 in the US, seven in Canada, six in England, three in France, one in Germany, nine ShopHouse Southeast Asian Kitchen restaurants, and two Pizzeria Locale restaurants (Marketline, 2015).

Index Membership: N/A

Sector: Services

Industry: Restaurants

Full Time Employees: 53,090

Position in Industry

CMG competes in the restaurant industry, which is estimated to be a more than $225 billion market in the U.S. The industry is extremely competitive and is dominated by several large restaurant companies including McDonald's, Burger King, Wendy's, Panera Bread, and Yum! Brands. Other competitors include a variety of locally owned restaurants.

Within the restaurant industry, CMG competes in the fast casual segment, which is characterized by convenient food with a focus on fresh, healthful ingredients and customizable, made-to-order dishes. The prices for the offerings generally range from $7 to $10. We believe the recent shift in consumers' preference toward healthy food at reasonable prices has propelled rapid growth in this segment. This report analyzes the financial statements of chipotle and its competitor, as well as financial ratios.

FINANCIAL STATEMENTS ANALYSIS

Financial statements show the ….of the company. This report analyzes key factors of the fin statements for the past three years, as well as comparison of the reults with the closest competitor Panera bread.

Income