About Company
Chipotle Mexican Grill, Inc., frequently called just Chipotle, is a US-based fast-casual eatery chain offering specialized cuisines in Mission burritos, tacos, and bowls, custom-made in the presence of the customer.
Chipotle runs eateries in the United Kingdom, the United States, France, Germany, and Canada.
The name of the renowned restaurant chain originated from chipotle, which is the Nahuatl term for a dehydrated and creamed jalapeño cayenne pepper.
Chipotle Mexican Grill, Inc. was one of the oldest chains among all fast casual dining enterprises.
Steve Ells set the business up on 13th July 1993. At that point, the company had sixteen eateries (entirely in Colorado) after McDonald’s Corporation turned into a key shareholder in 1998.
By the moment there was McDonald’s total divestment from the US-based restaurant chain in 2006, it had expanded to more than 500 sites.
With over 2,000 locations, the fast-casual dining restaurant chain posted a net income of US $475.6 million. Besides, the company had a workforce of over 45,000 workers as of 2015.
In 2018 May, Chipotle declared the shifting of their business head office to Newport Beach in Southern California. Thus, their association with Denver came to a close following 25 years.
Foundation and Early Years
Steve Ells went to the Hyde Park, New York-based Culinary Institute of America. Subsequently, Ells turned into a line cook in San Francisco at Stars for Jeremiah Tower. There, Steve noticed the craze for the San Francisco burritos and taquerías in the Mission District.
1993
This year, Steve carried what he acquired in San Francisco and unveiled the debut of Chipotle Mexican Grill in Denver, the capital of Colorado. Ells chose the location in an erstwhile Dolly Madison Ice Cream outlet at 1644 East Evans Avenue, close to the University of Denver grounds. In doing so, he took an advance of US $85,000 from his father.
Steve and his father figured out that the outlet would have to vend 107 burritos daily to be gainful. Following the end of 1 month, the original eatery was vending more than 1,000 burritos per day.
1995
Ells launched the 2nd outlet in 1995 with the help of the proceeds of the company, and the 3rd became operational utilizing an SBA (Small Business Administration) credit.
For financing further expansion, Steve’s father endowed US $1.5 million.
Later, Steve formed a board of directors and chalked out an enterprise strategy, collecting an extra US $1.8 million for the smooth running of the organization.
Initially, Steve had intended to utilize the finances from the 1st Chipotle to launch a fine-dining eatery. However, he rather concentrated on Chipotle Mexican Grill once the bistros witnessed accomplishment.
1998 and Growth in Subsequent Years
In 1998, the first eatery beyond Colorado commenced in Kansas City, Missouri.
In 1999 March, the organization launched its debut site in Minnesota by releasing close to the university grounds of the University of Minnesota, Minneapolis.
During the same year, McDonald’s became a preliminary minority investor in the firm. By 2001, it had turned into the largest shareholder of Chipotle.
The outlay from McDonald’s let Chipotle grow, from sixteen eateries in 1998 to more than five hundred by circa 2005.
On 26th January 2006, the company made its IPO (initial public offering) following the twofold hike in its share price because of the soaring pre-IPO requirement. On its opening day as a publicly-traded firm, the stock surged precisely 100%, turning into the best US-oriented IPO in 6 years. It also ranked as the 2nd best Initial Public Offering for an eatery, succeeding Boston Market.
Steve utilized the proceeds from the IPO subsequently to finance fresh store expansion.
In 2005 March, Monty Moran won the berth of the chief operating officer and president of the restaurant chain while Steve continued as its CEO and chairman.
Divestment of McDonald’s
In 2006 October, McDonald’s entirely withdrew its investment from the restaurant chain. The idea was to undertake a bigger endeavor for McDonald’s for dissociating from all of its non-fundamental enterprise eateries— Boston Market, Donatos Pizza, and Chipotle. McDonald’s wished to concentrate on the principal McDonald’s chain.
McDonald’s spent around US $360 million on the fast-casual Mexican dining restaurant chain and withdrew US $1.5 billion. It tried to persuade Chipotle to include a breakfast menu and drive-through windows, to which Steve dissented. In 2008, the restaurant chain unveiled its debut site beyond the US in Toronto, Canada.
2009 Onwards
In 2009 January, Monty Moran, the chief operating officer, and the president got elevated to the co-CEO position. Moran would divide this role with Steve while holding his president berth.
In 2009, in a directory of quickest-developing restaurant chains, the chain achieved the eighth rank, as a result of an increment in US sales during the previous year. The next year, Chipotle achieved the 3rd rank.
In 2011, Consumer Reports rated Chipotle as the top fast-food chain in Mexico. The chain attends to around 750,000 customers daily.
In 2010 December, Chipotle employed chef Nate Appleman for formulating novel cuisines. Nate achieved the Rising Star Chef award from the James Beard Foundation. The Food & Wine magazine nominated him as the Best New Chef. Appleman was also a contender for The Next Iron Chef.
In 2016 December, Chipotle declared that Monty Moran, the co-CEO has quit his position with the instant outcome of Steve turning into the only CEO. After eleven months, Steve Ells proclaimed in 2017 November that he would be leaving office as CEO.
In 2018 May, Chipotle declared that there would be a shifting of the central office to Newport Beach, California from Denver. The business activities managed in their New York and Denver bureaus would shift to Newport Beach in Southern California or to a running bureau in Columbus, Ohio. This shift affected 400 employees. Some of them received transfer and withholding packages.
In 2018 June, the restaurant chain proclaimed the windup of 65 under-achieving eateries.
In 2020 March, Steve ended his relationship with Chipotle by quitting as the chairman and leaving its board of directors.
Overseas Presence
As cited by an editorial in The Motley Fool, by 2014 October, the restaurant chain had 17 sites beyond the US. Most of them lay in Canada. Simultaneously, the United Kingdom was in the course of launching new sites. The pace of international growth was tardier than anticipated. Several journalists and commentators assumed that the foodstuff was costly for their regions.
As of 2018, Chipotle had 33 sites beyond the US comprising 19 sites in Canada (Vancouver, Oakville, Mississauga, Vaughan, Markham, Toronto, and Ottawa), 6 sites in the UK (in London), 2 in Germany (in Frankfurt), and 6 in France (one in Lyon, and the others in Paris).
What Type of Company is Chipotle Mexican Grill, Inc.?
Chipotle Mexican Grill, Inc. is a publicly-traded company.
To Which Industry Does Chipotle Belong?
Chipotle belongs to the restaurant industry.
To Which Genre Does it Belong?
Chipotle belongs to the fast-casual dining genre.
When Did the Company Come into Existence?
The company commenced operations on 13th July 1993; 29 years back.
Who is the Originator of Chipotle?
The originator of the company is Steve Ells, a US-based business tycoon.
Where is the Central Office of Chipotle Located?
The central office of Chipotle is situated at 610 Newport Center Drive, Newport Beach, California.
In How Many Locations is Chipotle Mexican Grill, Inc. Present?
As of December 2022, the company has its footprints in 3,182 locations.
Which Area Does the Restaurant Chain Serve?
The restaurant chain serves the United Kingdom, the United States, Germany, Canada, and France.
Who are the Key People Running the Organization?
The key people playing a role in the phenomenal growth of this restaurant chain are:
- Brian Niccol (Chairman and Chief Executive Officer)
- Chris Brandt (Chief Marketing Officer)
- Jack Hartung (Chief Financial Officer)
- Scott Boatwright (Chief Restaurant Officer)
- Curt Garner (Chief Technology Officer)
What are the Products that Make Chipotle a Household Name in the US?
The products that make Chipotle a familiar name in every US household are:
- Mission burritos
- Tacos
- Mexican mode cuisine
How Many Employees Work for Chipotle?
As of December 2022, the fast-casual restaurant chain has a workforce of 104,958.
What Were the Subsidiaries of Chipotle from Time to Time?
Listed below are the names of the entities that served as Chipotle subsidiaries from time to time:
- 2013–present – Pizzeria Locale
- 2012–2018 – ShopHouse Southeast Asian Kitchen
- 2016–2018 – Tasty Made
Chipotle Mexican Grill, Inc. Stock Performance
The common stocks of Chipotle are transacted on the NYSE (New York Stock Exchange) with the ticker symbol CMG. Besides, the stock is a component of the index given below:
- S&P 500 index
On March 22, 2023, Chipotle Mexican Grill, Inc. (CMG) closed trading at $1,622.47 with the data given below at 4:03 pm EDT (Eastern Daylight Time).
Stock chart
Chipotle Mexican Grill, Inc. Financial Performance
Consolidated Statements of Income of Chipotle Mexican Grill, Inc. (in thousands, other than per share data)
Restaurant operating expenses (excluding amortization and depreciation) are individually presented below.
Year ended on December 31
Complete Highlights of the Whole Year 2022, YoY (year over year)
- Equivalent restaurant revenue rose 8%
- Gross revenue rose to US $8.6 billion, which is a jump of 14.4%
- The operating margin stood at 13.4%, a hike from 10.7%
- Diluted earnings per share stood at US $32.04. This was a 39.9% jump from US $22.90. Adjusted diluted earnings per share stood at US $32.78, a 29% jump from US $25.42. This was barring the following:
- A US $0.74 after-tax pay-off from outlays associated with particular legal events
- The 2018 performance share COVID-19 linked adjustment
- Business reorganization
- Worker separation expenses
- Eatery asset impairment and closure expenses
- And particular other expenses, partly counterbalanced by an unearned profit on investiture
- In-eatery revenue surged 26.4%. At the same time, digital revenue stood for 39.4% of beverage and food revenue
- The operating margin eatery level stood at 23.9%, a rise of 130 basis points
- Launched 236 fresh eateries with 202 sites, admitting Chipotlane
Food Safety Concerns
Since 2008, there have been certain outbreaks that raised concerns about the quality of food served by Chipotle. Some of them are listed below:
- Hepatitis outbreak – 2008 March
- Norovirus outbreak – 2008 April
- coli outbreak – 2015 July
- Norovirus outbreak – 2015 August
- Salmonella outbreak – 2015 August
- coli outbreak – 2015 October
- coli instances – 2015 November
- Norovirus outbreak – 2015 December
- Norovirus outbreak – 2017 July
- Clostridium perfringens outbreak – 2018 July
