Topic > Swot Analysis of Chipotle - 1613

Chipotle Mexican Grill, listed on the NYSE as CMG, is a high-revenue, high-growth fast food company or, more properly called, a fast-casual company. Using a model very similar to that of the McDonalds Corporation, when Chipotle opened its first store in 1993, they focused and the idea was simple: demonstrate that food served quickly did not have to be a "fast-food" experience. Chipotle uses high-quality raw materials, classic cooking methods and distinctive interior design. Generally characteristics that are found more frequently in the world of haute cuisine. When Chipotle opened its first store, it was groundbreaking for the restaurant industry. Twenty years later and more than 1,600 restaurants later, Chipotle has set the precedent in the dining category labeled "fast-casual," which is currently one of the fastest-growing segments of the restaurant industry. The distinguishing feature of this style of dining is that the quality of the food is comparable to that of full-service restaurants, combined with the convenience and speed of "fast-food". Chipotle, headquartered and originally from Denver, Colorado, now operates in the United States, United Kingdom, Canada, Germany and France, with more than 1,600 locations. One of the main reasons for the explosive growth is the simplicity and mission that Chipotle follows. “Food with integrity,” Chipotle's mission statement highlights the company's efforts to use organic ingredients and serve only the highest quality, naturally raised meats compared to any other restaurant chain. Being the first in the fast-casual sector, Chipotle has had a significant market share in the development and establishment of this sector over the last 20 years. Chipotle exclaims, "We try to do some things really well," from elevating basic raw materials to... middle of paper... brought by the delivered model and globally expanded operations. Chipotles' strengths are a result of its company mission, "Food with Integrity." According to the model, the company can expect a promising future in the next five years and prove to be a strong player in the fast-casual restaurant industry. Based on the analysis I have conducted from outside sources, as well as the completed financial model that outlines future potential, I would mark Chipotle as a Strong BUY. Investors should see the discount in the price and take advantage of the opportunity to invest in a company that still has huge room for growth globally. If managed efficiently and effectively, I believe Chipotle has the ability to achieve a level of sales that fast food chains experience on a daily basis, globally. If this turns out to be true, Chipotle would prove to be a fantastic investment for all investors.