QUOTE AND NEWS
BusinessWeek  Apr 1  Comment 
Such companies as Chipotle, Southwest Airlines, and Dove used points of friction to highlight their products
Clusterstock  Mar 31  Comment 
  Please enable Javascript to watch this video   Chipotle -- a $19 billion empire -- is redefining the way fast food is made and delivered to its customers. Watch to learn some surprising facts about the chain, including how to get...
Benzinga  Mar 28  Comment 
On Friday, Sterne Agee raised the price target for Chipotle Mexican Grill (NYSE: CMG) from $603 to $742 and reiterated a Buy rating. Analyst Jack Kindregan is more confident “traffic momentum can be sustained as Chipotle raises prices later...
SeekingAlpha  Mar 27  Comment 
ByQuoth the Raven: Telsa (TSLA) is part of a constituency of stocks that I don't think I would ever short, under any circumstances. You could tell me that certain death was coming for the company tomorrow and that capital would dry up, and I still...
SeekingAlpha  Mar 26  Comment 
ByMarshall Hargrave: "You make your own luck." -Ernest Hemingway Chipotle (CMG) has almost single handedly created the "fast casual" concept. In a sense creating its own luck. Its health-focused business model has proven highly...
TheStreet.com  Mar 25  Comment 
NEW YORK (TheStreet) -- I want to start by saying that I really like Panera Bread Company . I like its food, its management team (lead by founder and CEO Ron Shaich) and its restaurant atmosphere. With that being said, the fast-casual diner is...
SeekingAlpha  Mar 20  Comment 
Darden Restaurants Inc. (DRI) is set to report FQ3 2014 earnings before the market opens on Friday, March 21st. Darden Restaurants controls a handful of US-based restaurant chains including The Olive Garden, Red Lobster, and several...
TheStreet.com  Mar 20  Comment 
Story updated at 10 a.m. to reflect market activity. NEW YORK (TheStreet) -- Chipotle Mexican Grill stock may reach as high as $742 according to Sterne Agee. Shares of Chipotle gained 0.8% to $600.95 in morning trading Thursday. The analyst...
StreetInsider.com  Mar 18  Comment 
The following is a list of notable articles to help get you through the lunch hour: Apple (AAPL) iPhone 6 Production Expected to Start in Q214 -> Read this! Hawaiian Holdings (HA) Stock Gains as Key Competitor Ends Operations -> Read...
DailyFinance  Mar 13  Comment 
DALLAS, TX -- (Marketwired) -- 03/13/14 -- PBS Holding, Inc. (OTC Pink: PBHG) (PINKSHEETS: PBHG), (the "Company"), today released an update to shareholders. Today, the company is proud to announce the signing of the major Marketing and...




 

Chipotle Mexican Grill (NYSE: CMG) is a quick-service Mexican-inspired restaurant chain based out of Denver, Colorado. The company is primarily known for its large burritos, which are served wrapped in aluminum foil. The company emphasizes its simplified menu in which a small set of quality ingredients are combined to create items such as tacos, fajitas, and "burrito bowls" in addition to its burritos. All food items are assembled in front of the customer using an assembly line process.

The company is known for its simple and humorous print ads, its primary method of advertising. Its self-professed emphasis on quality ingredients has led to initiatives such as increasing the use of naturally-raised meats. Chipotle's stores are typified by an industrial-styled interior with heavy use of dark red color and corrugated metal accents.

At the end of 2010, Chipotle opened 128 new restaurants, bringing its total to 1,084 in the United States, Washington D.C., and Ontario, Canada. Furthermore, the company plans to open 135-145 new restaurants in the year 2011.[1]

Company Overview

In 2010 Chipotle reported revenues of $1.84 billion, a 21% increase from 2009. Net income for the year was $179 million, representing a 41% growth.[2]

Up to 25% of Chipotle's new restaurant openings will be what are called “A Model” restaurants, which Chipotle plans to put in well established markets with high levels of brand awareness. A Model locations will be built primarily in secondary trade areas which have attractive demographics but are typically characterized by lower occupancy costs. The company expects that A Model locations will be constructed for substantially lower investment costs and have lower operating expenses than its recent traditional restaurant openings. The economic environment has put pressure on the commercial real estate market and developers, reducing the number of new real estate developments available to the company, which have historically accounted for a majority of the Chipotle's new restaurants.

Trends and Forces

Increasing Hispanic Culinary Influence

New Mexican fast food restaurants like Chipotle and Qdoba are catering to the Hispanic market to drive sales. According to the US Census Bureau, 25% of the US population is of Hispanic descent. Hispanics account for over $600 billion in purchasing power in the US alone and by 2050, it is projected that 1 out of every 4 Americans will hail from a Spanish-speaking country or region. It is no surprise, then, that the burrito has become an American culinary staple and that the industry is adding Southwestern cuisine to its menu offerings. Chipotle – with its flavorful Mexican cuisine – is positioned to extract value out of this powerful demographic over the next 10 years.

No Time, More Money

The baby boomer generation, time-pressed Gen Ys, and the rise of dual- income families means more people are dining out. There are 77 million Boomers in the US currently and they are getting older and wealthier. Americans can more readily afford to eat out, but they are also more time constrained than ever: according to the Department of Labor, more than 50% of American families were dual earner households and US disposable personal income should continue to grow in the forseeable future. With both parents holding full-time jobs, less time is left to prepare meals. Simply stated, eating out is the most convenient solution and the industry can quickly ramp capacity to meet demand. VIVA LA RAZA

More room for growth

Presently, the company operates all of its restaurants within the US and believes the potential for domestic stores is around 3,000 locations. Since current restaurants only comprise of roughly a third of that level, there is significant room for growth before the company hits saturation.

Whole Foods Effect

The company is well positioned to capitalize on the “Whole Foods effect” and secular drive towards high quality ingredients. According to the organic Trade Association (OTA), organic food sales are growing at a 20% clip annually in the US, although such food only accounts for 3% of all food and beverage sales. The company is ambitiously redefining the way America grows, serves, and eats its food. Most of the food is made fresh daily: its people chop fresh tomatoes, pull oregano leaves off stems, and toast cumin seeds. Among its suppliers, Chipotle avoids meat from livestock raised with hormones or antibiotics and looks for fresh ingredients naturally raised with respect to the land, animals, and farmers that produce the food.

Chipotle, seems to have created a sustainable branding strategy that leverages its good food, humorous ads, distinctive interior design, and in-store world music. It is a testament to Chipotle’s success that they have built a purpose bigger than its product and accomplished so without any finger-pointing.


References

  1. CMG 2011 10K
  2. CMG 2011 10K
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki