Chipotle Case Analysis Essay Example | Topics and Well Written Essays - 2250 words

Chipotle Case Analysis - Essay Example ii. Ensured usage of raw materials of the highest quality and application of classic methods of cooking. This was to ensure that the restaurant produces dishes that are reasonably priced and ready to serve to customers in a short while. iii. Creation of operationally efficient restaurant having a pleasing aesthetic distinctive setting in its interior. iv. Friendly customer care services. v. Increased awareness and respect for the environment. This would have entailed the use of freshly grown organic produce and meat that is humanely raised and having no hormones or antibiotics. At the point of establishing these chains of restaurants, the main idea that was in the mind of the entrepreneur Steve was that, as a place of fast foods, the restaurant needed not to be quite expensive but, more accessible and affordable to most of the consumers. As such, when Steve commissioned the opening of the first of such restaurants in Denver in the year 1993, it became a great hit in the marketplace, and the majority of consumers were pleased with the services offered. According to the report, Chipotle grew in operations from a 1-unit restaurant to a 1,230-unit chain of restaurants that served in various parts of the country (41 states), and which managed to serve a daily customer base of about 800,000 people. The reasons for this great increase in sales turnover and high profitability index was due to a combination of various factors among them, provision of better quality fast foods compared to other restaurants, up scaling of the restaurant and the ability to deliver faster services to the customers. It is as a result of this extensive expansion and tremendous increase in sales turnover of the restaurant that Steve sought to expand the base into other neighboring states. Such expansions were to areas such as the District of Columbia, the United Kingdom and Canada. For instance, according to the financial reports of the year 2011, Chipotle managed to record revenues worth $2.3 billion and a $214.9 million in net income. The diluted earnings per share (EPS) for the same year were about $6.76 million. These are clear indications to a company with a positive growth profile hence, prospectively looking forward to increased business opportunities in the near future. A SWOT analysis for Chipotle Mexican Grill will be based on the past relations for continued existence of the company. For instance, the continued increase in the stock prices for a company is a likely indication of strength in the restaurant. There are a number of reasons as to why a SWOT analysis for a company is essential, especially to stakeholders and prospective investors to the company. This is because the analysis will help in making informed decisions about investing in the company or even buy shares and stocks from the shares of the company traded in the stocks market (Paiz, Dave, Ryan, Brian, Kristina, Frank & Mark 165). Chipotle Mexican Grill is recorded to have publicly started tradin g in its shares in the year 2006, and since then, it has had impressive stock prices recordings in the market. For instance, according to this report, the stock price of Chipotle Mexican Grill in the year 2012 climbed to record high of about $380 to $385 per every traded stock as compared to the previous year; thus, a representative 80% increase. Strengths 1. The availability of a well developed marketing strategy. A critical study into the report