Chipotle Stock

Sarah_Taufiq · March 29, 2021, 4:07pm

Chipotle Mexican Grill, Inc. often known plainly as Chipotle, is an American chain of fast food restaurants in the Canada, United States, United Kingdom, Germany, and France, specializing in tacos and Mission burritos that are made to order according to demand of the customer. Its name derives from chipotle, the Nahuatl name for a dried and smoked jalapeño chili pepper. The company trades on the New York Stock Exchange under the ticker symbol CMG.

Chipotle is one of the very first chains of fast food dining establishments. Competitors in the fast-food Mexican market include Qdoba Mexican Grill, Moe’s Southwest Grill, Baja fresh and Rubio’s Coastal Grill. Founded by Steve Ells on July 13, 1993. Chipotle had total 16 restaurants (all in Colorado) when McDonald’s Corporation became a major investor in 1998. With time McDonald’s fully divested itself from Chipotle in 2006, the chain had grown to over 500 different locations. With more than two thousand locations, Chipotle had a net income of US 475.6 million dollar and a staff of more than 45,000 employees in 2015.

In May 2018, Chipotle finally announced the relocation of their corporate headquarters to Newport Beach, California, in Southern California, ending their relationship with Denver after almost 25 years.

International

According to an article in The Motley Fool, Chipotle had 17 various locations outside of the United States by October 2014 with the majority in Canada, and the United Kingdom was in the process of opening more locations. The rate of overseas expansion was quite slower than expected. Many of the press reviewers thought that the food was too expensive for their area.

As of 2018 there are 33 locations outside of the United States with 19 locations in Canada (Ottawa, Toronto, Markham, Vaughan, Mississauga, Oakville, Vancouver), 6 locations in The United Kingdom (London), 6 in France (Paris), and 2 in Germany (Frankfurt)

Canada

In August 2008, Chipotle opened its first restuarant outside of the United States in Toronto, the second location in Toronto–and in all of Canada–was not opened until 2010.

The first Canadian location outside of the Toronto area was opened in Vancouver in December 2012. A second Vancouver-area location was opened in Burnaby in October 2014 followed by a third in Surrey in January 2016, a fourth in Langley in October 2016, and a fifth in West Vancouver in March 2018.

The first location in the nation’s capital of Ottawa was opened in February 2017 at the Rideau Centre.

United Kingdom

Chipotle expanded to Europe with the first European restaurant opening in May 2010 in London. A second location opened in London in September 2011. The following year, three additional locations were quickly opened in the London area. After this growth spurt, the rate of further expansion in London slowed greatly with the sixth location appearing in 2013 and the seventh in June 2015. Although Chipotle blames the slow growth in the United Kingdom on the British unfamiliarity with Mexican foods, several locally owned burrito chains had opened locations across the United Kingdom during the same interval.

France

The first location in France opened in Paris in May 2012.

Expansion in France was much slower than that in the United Kingdom or Canada, with a second location in Paris opening in 2013 and a third location in 2014. At 7,000 square feet, the restaurant at La Défense is, as of 2015, the largest Chipotle location in the world, while a typical Chipotle restaurant is usually between 2,200 and 2,500 square feet. A fourth Parisian location was opened in Levallois-Perret in 2015 followed by a fifth and a sixth Parisian location in 2016, both in Saint-Germain-des-Prés.

Germany

The first location in Germany opened up in Frankfurt’s Skyline Plaza shopping mall in August 2013.

A second location opened in Frankfurt’s MyZeil shopping mall in April 2019.

Corporate management

Chipotle’s team includes a residing corporate office of managers and its board of directors. Members of both teams are appointed to serve on committees: audit, compensation, and nominating and corporate governance.

The top management team consisted of the chief executive officer, Steve Ells; the chief financial officer, Jack R. Hartung; the chief marketing and development officer, Mark Crumpacker. The current board of directors consists of: Ells, Patrick Flynn, Albert Baldocchi, Neil Flanzraich, Darlene Friedman, Stephen Gillet, Kimbal Musk and John Charlesworth. On March 14, 2018, it was reported that Mark Crumpacker, who had previously been charged in a 2016 ■■■■■■■ ring indictment, would be leaving the company.

Ells serves as chairman of the company, and served as Chief executive officer until November 2017. He has a 1.25% stake in the company. The labor-market research firm Glassdoor reported that Ells earned $29 million in 2014, versus a median of $19,000 for Chipotle’s workers, making the CEO-to-worker pay ratio 1522:1.

On February 13, 2018, Chipotle announced that Taco Bell CEO Brian Niccol would replace Ells as CEO starting on March 5 while Ells would retain his chairman position.

On March 6, 2020, Ells resigned as chairman and left the board of directors, breaking his final ties to the company. At the same time, Niccol was appointed chairman and the size of the board was reduced from 10 to 7 directors.

Operation and distribution

All of Chipotle’s restaurants are company-owned, rather than franchised. As of December 2012, 1430 restaurants have since opened throughout the United States and Canada, with locations in 43 states, Ontario, British Columbia, and the District of Columbia.

The field team are the employees who work closely with but not directly within specific restaurants. The field support system includes apprentice team leaders (step up from restaurateurs), team leaders or area managers, team directors and regional directors (not atypical for them to oversee more than fifty locations). Because Chipotle does not franchise, all restaurants are owned and operated directly by the corporation itself. Thus, whenever Chipotle is in the process of launching a new location, the field team hires a new general manager and trains them at a current location so that they will be ready for the new location when it opens for business. The corporate office takes care of finding and funding new locations as well.

Chipotle’s menu consists of five items: burritos, bowls, tacos, quesadillas, and salads. The price of each item is based on the choice of chicken, pork carnitas, barbacoa, steak, carne asada, tofu-based “sofritas”, or vegetarian (with guacamole, which would be at an extra charge otherwise). Additional optional toppings are offered free of charge, including: rice, beans, and four types of salsa, sour cream, cheese, and lettuce.

When asked in 2007 about expanding the menu, Steve Ells said, “[I]t’s important to keep the menu focused, because if you just do a few things, you can ensure that you do them better than anybody else.” Chipotle also offers a children’s menu.Most restaurants sell beer and margaritas in addition to soft drinks and fruit drinks.

The majority of food is prepared in each restaurant. Some exceptions are the beans and carnitas, which are prepared at a central kitchen in Chicago, Illinois. None of the restaurants have freezers, microwave ovens, or can openers.

The chain experimented with breakfast foods at two airports in the Washington (D.C.) metropolitan area but decided against expanding the menu in that direction. Starting in 2009, selected restaurants had offered a pozole soup, which has since been discontinued.

In June 2015, Chipotle began test marketing a pork and chicken chorizo-type sausage as a new protein option at selected locations in the Kansas City area. Some food writers have expressed their health related concerns over the protein’s relatively high sodium content since a 4-ounce serving contains 293 calories and 803 milligrams of sodium while the American Heart Association’s recommended daily amount is less than 1,500 milligrams of sodium. In contrast, the protein options with next highest sodium contents are Barbacoa with 530 milligrams and sofritas with 555 milligrams. An earlier version on the Mexican sausage was tested in Denver and New York City in 2011, but that test was terminated when that version of the sausage was perceived as looking too greasy. Chorizo was discontinued in September 2017 but was returned to the menu in the following year for a limited time.

In July 2020, Chipotle began test marketing a cauliflower rice option at 55 locations in Colorado and Wisconsin.

Chipotle accepts fax orders, and in 2005 the company added the ability to order online from their website. For both online and fax orders, customers proceed to the front of the line to pay for pre-ordered food. In 2009, Chipotle released an app for the iPhone that allows users to find nearby Chipotle locations, place an order, and prepay with a credit card. In 2013, Chipotle released an Android app that allows users to locate nearby Chipotle locations, place an order, prepay with a credit or gift card, and access favorites and recent orders.

Nutrition

In 2003, a Center for Science in the Public Interest report stated that Chipotle’s burritos contain over 1,000 calories, which is nearly equivalent to two meals’ worth of food. MSNBC Health.com placed the burritos on their list of the “20 Worst Foods in America” because of their high caloric content and high sodium. When a burrito with carnitas, rice, vegetables, cheese, guacamole, and salsa was compared with a typical Big Mac, the burrito had more fat, cholesterol, carbohydrates, and sodium than the Big Mac, but it also had more protein and fiber. The restaurant has also received praise – Health.com included the restaurant in its list of the “Healthiest Fast Food Restaurants”.

Chipotle’s vegetarian options include rice, black beans, fajita vegetables (onions and bell peppers), salsa, guacamole and cheese. All items other than the meats, cheese, sour cream, and honey vinaigrette dressing are vegan. As of late 2013, Chipotle developed a new cooking strategy for the pinto beans, eliminating the bacon and making them vegetarian and vegan-friendly. The cheese is processed with vegetable-based rennet in order to be suitable for vegetarians. In April 2010, Chipotle began testing a vegan “Garden Blend” option, which is a plant-based meat alternative marinated in chipotle adobo, at six locations in the U.S. The flour tortillas used for the burritos and soft tacos are the only items that contain gluten.

Frequently Asked Questions

1- Is Chipotle owned by Mcdonald’s?

Founded by Steve Ells on July 13, 1993, Chipotle had 16 restaurants (all in Colorado) when McDonald’s Corporation became a major investor in 1998. By the time McDonald’s fully divested itself from Chipotle in 2006, the chain had grown to over 500 locations.

2- Why is Chipotle so popular?

One of the keys to Chipotle’s success is its small menu. First, since Chipotle only stocks fresh ingredients, there is always a chance of food spoilage. The small menu reduces the number of ingredients needed on-hand, thus reducing the likelihood of waste. Second, small menus mean quick service.

3- What Is the best meat at Chipotle?

Chef Tariq Nasir prefers barbacoa burritos, since he considers the meat to be the most flavorful option at Chipotle. Barbacoa is a type of seasoned meat. Yelp/Brenda K. For Chef Tariq Nasir, blogger at ChefTariq.com, the ideal Chipotle burrito starts with barbacoa, white rice, and black beans.

4- Which Chipotle meat is not spicy?

Braised carnitas.

This is pork that is rubbed with spices, marinated overnight, and then braised for many hours until it is tender enough to be shredded by hand. It is the least spicy of all the meats.

5- Is Chipotle steak or chicken better?

Marinated in the same chipotle pepper and grilled, the steak contains just 10 more calories and milligrams of sodium, but less half a gram of fat and one gram of saturated fat. But because of its protein and sugar counts, chicken is still at a slight advantage.

6- What meat is barbacoa?

Barbacoa is an authentic Mexican dish typically made with beef, goat or lamb. It is traditionally seasoned with dried chilies and spices and slowly cooked until perfectly tender.

Conclusion:

Chipotle Mexican Grill, Inc. often known plainly as Chipotle, is an American chain of fast food restaurants in the Canada, United States, United Kingdom, Germany, and France.