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Chipotle Mexican Grill: The King of the Burrito Ossining High School Ossining, NY 10562.

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Presentation on theme: "Chipotle Mexican Grill: The King of the Burrito Ossining High School Ossining, NY 10562."— Presentation transcript:

1 Chipotle Mexican Grill: The King of the Burrito Ossining High School Ossining, NY 10562

2 The Chief Executive Officer of CMG Founder and CEO: Mr. M. Steven Ells –Age: 41 –Hometown: Boulder, Colorado –Work History: Cook, Stars Restaurant 1991-92; Founder, CEO & Chairman of Chipotle Mexican Grill Inc. 1993- present –Education: University of Denver, B.A. in art history, 1988; Culinary Institute of America, 1990. –Number of Shares Owned: 914,050 –Salary/Year: $870,000.00 –Hobbies: cooking, cycling, art, reading

3 The Chief Executive Officer of CMG Important Past Actions: –Opened new markets and improved a limited menu emphasizing naturally raised meats and vegetables. –Remained focus on company motto, “Food With Integrity,” ensuring that half the chicken used by Chipotle is naturally raised with antibodies. Future Plans: –Hopes to have all of Chipotle’s meats to be naturally raised. –To continue to constantly push to use better quality raw ingredients –To investigate the potential of adding fish choices to the menu

4 Company Information With over 13,000 employees, Chipotle Mexican Grill has become one of the most common sources for burritos across the nation. This growth, however, cannot be attributed solely to Chipotle. From 1998 to late 2006, McDonald’s had been a business partner of Chipotle, providing, among other things, needed capital and shared access to each other’s resources, helping Chipotle to reach a vast business growth. With the assistance, Chipotle expanded from 15 restaurants in Colorado to over 500 across the country spanning from San Diego to Boston.

5 Company Information According to company founder Ells, “[The partnership] allowed us to build Chipotle in accordance with our own vision, to show that food served didn't have to be a traditional fast-food experience.” Chipotle has appealed more towards the growing health conscience side of Americans—a fact that competitors such as Burger King and Wendy’s cannot boast. The restaurant chain was able to create a new type of restaurant—“fast- casual”—which encompasses positives of fast food with the benefits of a comfortable, sit-down restaurant.

6 Company Information Over the course of the project (approximately 2 months), the price of the stock rose $9.24, from $49.56 to $58.80, a stock percentage change of 18.64%. From 2000 to 2005, Chipotle experienced a rapid growth of profits and operating incomes. –For example, across the 5 year period, individual restaurant sales rose from $131,331 to $625,077. Third quarter earnings for Chipotle Mexican Grill in 2006 were far beyond what analysts expected as same-restaurant sales gained 11.6 percent and revenues rose to $211.3 million— an increase of 28 percent.

7 Company Information During the early 2000s, it appeared that Chipotle would find great competition from Baja Fresh Mexican Grill. However, its’ one time biggest rival, Wendy backed Baja Fresh Mexican Grill, has since succumbed to the pressures of the food industry. While Wendy’s bought Baja Fresh chain in 2003 for $272 million, they sold it in October of 2006 for $31 million—a loss of $241 million. Chipotle has yet to suffer an major difficulties: –In 2004, the company became profitable. –By 2005, the annual earnings grew nearly 250%.

8 Stock Growth in 2006

9 Advertisement: Appeal to Teenagers Usually When you Roll Something This good, It’s Illegal Unlike many of the other larger restaurant chains throughout the country, Chipotle is not totally consumed by a need to advertise—their fresh, high-quality food products do much of the talking and publicizing for the company.

10 Advertisement: Appeal to Teenagers On www.Chipotle.com, a distinctive, advanced, and highly interactive website, the company allows people to view a selection of internet ads.www.Chipotle.com Many ads rely on hilarity and cheerfulness, thereby invoking and solidifying a positive image of the company in the minds of those who seem them. One ad in particular revolves around the basic yet complex phrase, “Usually when you roll something this good, it’s illegal.” In black and white, the ad plays off of both its plainness and humor.

11 Advertisement: Appeal to Teenagers The quote appears to directly appeal to a younger audience, an ever growing section in the foundation of society, by cleverly incorporating a comical reference to the increase in drug use among teens in the last for years. The ad is like the food that Chipotle serves: –Simple with its ingredients while harboring an innate sense of complexity in the perfect blending of the raw materials.

12 Conclusion If Chipotle’s ability to outperform Baja Fresh and its never wavering pursuit of the highest-quality ingredients are any indication of its future, one can expect even more great things from the restaurant chain. With such a positive past, the future of Chipotle can only be even more prosperous. Chipotle Mexican Grill presents an ideal opportunity to both new and old investors—a chance to invest in a company paving the way towards a new wave of healthier restaurants, offering Americans the opportunity to enjoy a truly Mexican delicacy while still being able to live fast- paced lives.


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