RUNNING HEAD: CHIPOTLE STRATEGIC PLAN

Chipotle Strategic Plan

Edwin Nash
Hosianna Batubara
Alex Edeigba
MGT 527 01 E FALL 2015
Texas A&M University Commerce

CHIPOTLE STRATEGIC PLAN

Table of Contents
Introduction .....................................................................................................................................3
Core Values .....................................................................................................................................4
Operating Guidelines ......................................................................................................................5
SWOT Analysis ..............................................................................................................................9
Vision and Mission .......................................................................................................................10
Broad and Specific Goals ..............................................................................................................11
Strategies .......................................................................................................................................11
Critical Success Factors ................................................................................................................14
Distinctive Competencies .............................................................................................................16
Measurements ...............................................................................................................................18
Current Issues ................................................................................................................................19
Recommendation ..........................................................................................................................21
Conclusion ....................................................................................................................................22
References .....................................................................................................................................24
Appendices ....................................................................................................................................26

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Introduction
Chipotle Mexican Grill is a chain of restaurants operating in the Casual Dining Segment
that specializes in serving Mexican cookery. As at the end of June, 2015, the company owned,
controlled and operated 1,878 restaurants, with a very high percentage of the company located in
the United States. The restaurant menu combines typical and assorted Mexican cuisine,
complemented with various sauces and ingredients such as salsa, guacamole, cheese and lettuce
to make up ones own dishes.
In order to expand its market in the industry, the company opened an Asian cuisine
restaurants in Washington, called ShopHouse and South-East Asian Kitchen. As at June 2015, the
number of the restaurant had increased to 10. It also divested into another business called
"Pizzeria Locale, a fast casual pizza brand. The company also intends to open around 190 to
205 more restaurants in 2015, as well as smaller number of ShopHouse and/or Pizzeria Locale
restaurants.
Chipotle operates on the "Food with Integrity" philosophy, in which it offers naturally
raised pork, chicken, and beef. Naturally raised point toward the fact that the animals are raised
in open pastures and are nourished on a wholesome vegetarian nutrition, short of any added
hormones or antibiotics. The companys objective is to offer its customers a satisfactory dining
experience in quick time, while providing quality food and ambiance without having the
customer wait too long. Chipotle competes with other restaurants in the fast casual dining sector
that includes Applebee's, Qdoba, Taco Bells, Chili's, amongst others. It also contends with other
fast food restaurants such as Burger King, McDonald's, KFC and Subway.

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Core Value
Chipotles values is focused on using high-quality ingredients and cooking techniques to
make good food accessible to all customers at affordable prices, but this has grown over the
years since fresh is not enough anymore, (Chipotle, 2014). Moreover, Chipotle endeavors to
recognize where all of its ingredients originates from in an effort to endorse local farmers and
sustainably-grown and naturally-raised products, which goes along with their Food With
Integrity mission statement which is as follows:

Serving the best and sustainably raised food that appeals to the eye and taste buds with

healthy nutrition and great value.

Sustaining and supporting local farmers who respect and care for their profession and the

animals.
Using animal meat that are bred and fed without using antibiotics or hormones whenever
possible

Furthermore, its core values includes:

Honesty and integrity

Concern and passionate for their consumers
Open to views and opinions from its customers and are dedicated to making their

business better
Always willing to take risk and face challenges and are able to work and see through the
challenges.

Operating Guidelines
Culture of Top Performers

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Chipotle is focused on peoples culture with emphasize on identifying, hiring, and

empowering top performing employees. They are committed to creating a culture of high
performance that leads to the best restaurant experience for the employees and customers. This
principle is based on hiring the best people for the restaurants. It also makes the effort of hiring
employees that have passion for food and who will operate their restaurant consistently with high
standards.
Furthermore, Chipotle also provides greater career opportunities for employees who work
hard; provides great customer service; and have the ability to lead and empower others. It also
provides training to develop potential of the employees. They are committed to developing their
employees, by promoting exceptional individuals internally.
Nonetheless, they have leveraged their outstanding restaurateurs leadership by giving
them responsibility for mentoring one or more close restaurants. Therefore, it will provide the
opportunity for them to develop the leadership skills in the restaurant. Restaurateurs who have
shown their skills will create a high standards culture and constant improvement and
empowerment can be promoted to become the team leaders.
Importance of Methods and Culture
Although Chipotle has many restaurants, they consider that their withdrawal from the
programmed cooking techniques and microwaves used by many traditional fast-food and fastcasual restaurants benefits set them apart. They use classic cooking methods such as marinating
and grilling meats, hand-cutting produce and herbs, making fresh salsa and guacamole, and
cooking rice in small batches throughout the day. Furthermore, they work in kitchens that are
almost similar to those of high-end restaurants, than the typical fast-food place. Despite their
labor-intensive method of food preparation, they also focused on menu that creates efficiencies

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that allow them to serve high quality food, made from ingredients typically found in fine dining
restaurants.
In addition, the firm strives to make their work environment, attracts skilled and talented
workers. This includes ensuring that employees act responsibly, while they are being empowered
to make their own decisions for their consumers. They are also taught to treat their customers
with respect. They also ensure that the work place encourages people from all backgrounds, are
able to work, succeed and realize their full potential.
The Front Line is Key
Chipotle has designed their restaurant and kitchen intentionally to place their employee
up front with customers to reinforce their focus on service. Likewise, their open kitchen also
allows consumer to see that they are actually preparing fresh food every day. All of their
restaurant employees are encourage to interact with consumer when they are preparing the food.
Chipotle is also focused on attracting and retaining people who can deliver their good
experience promise to every customer. This has been possible so far, because it provides each
customer with individualized attention that eventually creates an avenue to respond to customer
suggestions in hospitable and personalized manner. Therefore, they believe that their focus is to
create a positive and interactive experience to build loyalty and enthusiasm for the brand among
the stakeholders.
Restaurant Team
Every Chipotle restaurant has a general manager, an apprentice manager, service
managers, kitchen managers, and 24 full and part time crew members. They usually have two
shifts at the restaurant that make the schedule system simple as well as stabile. Also, they tend to
have more employees in busy restaurants. Training is also one important part of the system hence
the employees can work in a variety of stations therefore making the outlet more efficient during
the busy times.

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By emphasizing on the customer service sector, Chipotle encourages its General

Managers and employees to welcome and interact with customers during the day. Additionally,
they also have a field support system that comprises of apprentice team leaders, area managers,
team directors, executive team director, and restaurant support officers.
Risk Management
Chipotle has been strong in managing its risk effectively. It achieves this by keeping its
customers satisfied, earning high returns on investments, and giving back stable returns for its
shareholders. Chipotle has been consistent and stable in managing risk and every worker is held
responsible.
Managing Efficiency
Chipotle is focused more on their food and business which matter most to their
consumers. They reduce their expenses in activities that dont contribute to the revenue of the
firm and instead invest in growth opportunities like expansion into international markets and
opening up more stores.
Corporate Governance
Chipotle is constantly seeking ways of balancing the interests of the many stakeholders of
the company - these include its shareholders, management, customers, suppliers, financiers,
government and the community. The boards of directors are elected by shareholders and they are
saddled with the ultimate responsibility of decision making. The head of the management team,
which is the CEO, is in charge of the overall responsibility in managing and making the business
profitable. The main focus function of the board of directors is to oversee or have oversight
which means to define and enforce accountability standards that will act as a guide and help the
senior management to fully execute the responsibilities they have for the interest of its

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shareholders. Apart from that the following are the main responsibilities of the board of
directors:

Evaluating the performance of the senior management team and the firm by
overseeing the firms conduct of business and evaluate it to see if its being effectively
and efficiently managed. They do it through meetings that are held with the outside

directors with the absence of the management.

Another process is selecting, evaluating and planning regularly for the success of the
CEO and members of the senior management as the board of directors consider

appropriate like fixing the compensation.

Reviewing the firms strategic objectives and plans.
Advising and counseling to the CEO and the top management.
Assisting top management in the oversight of compliance by the firm with applicable

laws and regulations, including the public reporting obligations of the firm
Establishing the amount of compensation for the top management members
Overseeing management with a goal of ensuring that the firms assets are safeguarded

through the maintenance of appropriate accounting, financial and other controls

Annually evaluating the overall effectiveness of the Board and also selecting and
recommending to shareholders for election an appropriate slate of candidates for the
Board.

SWOT Analysis
Strengths

Offers healthy and quality food

Brand recognition
No franchising, all restaurants are owned by the company
Globalization
Supplier relationships
Advertising costs minimal
Financial background is strong with high assets

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Located in heavy traffic areas, urban areas and big cities

Compensation and salary is higher than average wages to employees and management

incentives.
Online order and delivery in certain areas

Weaknesses

Expensive menu
Limited options for food
Limited marketing, uses word of mouth
Location is limited
Local farms are not available in proximity

Opportunities

Enter and capture international markets

Expand menu choices
Increase in the number of health conscience consumers
Open more restaurants
Transparency and proximity in getting natural food sources

Threats

Competition from Qdoba, Moes Southwest Grill and Panera Bread.

Taco Bell adding natural products and trying to be healthy
Expensive pricing
Slow growth in economy
Ease of entry into the natural markets
Supply restraints of naturally raised meats

Vision and Mission

As stated in their Chipotle 2014 Annual Statement, their vision is to change the way
people think about and eat fast food. Therefore its important for the business to show that food
which served fast does not mean that it has to be fast-food. The company actually
accomplished this by using high-quality raw ingredients, classic cooking techniques, distinctive
interior design to create an incredible eating experience at rational prices, and friendly people to

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take care of each customer (www.chipotle.com). They also avoid a standard approach, when
creating the restaurant experience. Hence the design is done to make it look more like a finedining restaurant.
Furthermore, to accomplish the vision and mission, Chipotle has been trying to
implement a food culture and a people culture which would allow the company to create a
new fast food model and unit economics that will provide outstanding returns to the
stakeholders.
Moreover, the mission of the company is Food with Integrity, which means that
Chipotle is looking for better quality of food by utilizing ingredients which are not only fresh,
but are also sustainably developed and responsibly raised with respect for the animals, the land,
and the farmers who produce the food.
Broad and Specific Goals
To achieve its vision and mission, Chipotle has some strategic goals which are related to
Food with Integrity philosophy. However, Food with Integrity defines on how the business is
committed to:

Sourcing the very best ingredients that can found and prepared by hand
Supporting and sustaining family farmers who respect the land and the animals in

their care.
Using meat from animals raised without the use of antibiotics or added hormones,
whenever possible. (Chipotle, 2014)

They are actually committed because they understand the connection between how food
is raised and prepared as well as how it should taste. This takes employees that are dedicated to
the high standards of the organization. Chipotle raises a culture of uppermost performers that

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have been refined from within to sustain growth. These characteristics defines Chipotle and set
them apart from other restaurants.
Strategies
Business Level Strategy
Who: Customers who want a fast-casual dining experience at reasonable and competitive
prices. It does not target a definite demographic but provides to individuals who desire timely
service and great-tasting food produced from all-natural ingredients
What: The Company caters to the ever-growing, health-conscious community that craves
all-natural and locally raised ingredients in their meals. Chipotle also provides an expedited
dining experience while providing higher quality options than the typical fast-food restaurant
Why: There existed a void in the fast-casual dining space that Chipotle looked to fill in a
unique manner. The strategy of creating a hybrid between fast-food and dine-in option, and this
has attracted a larger consumer base and caters to the hectic schedules of most individuals in
today's society. Additionally, the absence of healthier, expedited dining options presented an
unparalleled opportunity for Chipotle to take advantage of.
How: Chipotle provides great-tasting food at competitive prices while catering to
consumer's desire for all-natural ingredients. The customization options at the restaurant also
allow customers to create a meal unique to their tastes and preferences, while allowing Chipotle
to demonstrate its versatility and customer-driven mission
Also by using a Differentiation Strategy of providing premium priced organic
ingredients, has placed Chipotle in the competition with other fast casual competitors. Moreover,
its products are competitively priced and they strive with other fast food competitors such as

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Qdoba and Panera Bread and different to compete against cost leaders such as McDonalds and
Taco Bell (Appendix A).
Chipotle can be considered as a company that uses its differentiation strategy to actualize
the following:

Focus on high-quality product with rapid service

Emphasizes on positioning as a means of differentiation
Uses its competitive advantage to fuel growth

Chipotle believes that even though the cost of using organic ingredients is higher,
customers are willing to pay extra for healthier food. Chipotles Food with integrity mission
positions itself as a provider of higher quality food by using fresh, gourmet and increasing
organic ingredients successfully differentiates their products from competitors and meets the
consumer demand for healthier food.
Moreover, to control their quality for the food and service, Chipotle owns and controls
their entire restaurants. Though this is considered costly, it however allows them to ensure the
high qualities of the products. Furthermore, Chipotle also implemented a vertical complementary
alliance with its suppliers. Since they actually depend on their close relationship to obtain fresh
ingredients.
Corporate Level Strategies
Chipotle is a solitary business succeeding through market development and penetration
strategy. It has a very low level of diversification, because 95% of its revenues is mostly
generated through Chipotle Mexican Grill, with investment in ShopHouse Asian Kitchen and
Pizzeria Locale contributing the rest. Both new restaurants are still young and have not
contributed ominously to Chipotles revenues. In trying to expand the Chipotle Mexican Grill

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internationally and domestically, the company could also increase its diversification by
capitalizing in its other businesses or intensifying its concept and philosophy to other cuisines.
Marketing Strategy
For its promotional strategy, Chipotle has worked with a small budget and rarely
advertise on television, but works on its own in-house (Schoultz, 2014). They do these strategies
to win over millennial by solidifying their reputation for freshness and healthier fare than its
competitor. Moreover, Chipotle also obtained reputation by shying away from traditional media
because younger audiences feel like its less authentic and less easy to connect with.
International strategy
Chipotle has been implementing a global strategy which is centralized in the United
States. Currently, they have managed several restaurants located outside U.S. which are in
Canada, United Kingdom, Germany, and France. However, they offer products that are
standardized across markets with differences in the food variety for different market. Also, they
share their resources across the state borders. However, even though the food is prepared in the
kitchen, some of their ingredients are made in the central kitchen.
For the international market, they actually established the new owned subsidiaries even
though this thing is costly. This thing is part of their strategy because they want to ensure their
high quality of the products which differentiate their brand.
Critical success factor
The restaurant business is highly competitive and overcrowded with companies trying to
compete for consumers. Chipotle operates in the fast casual segment of the industry that
combines both speeds of fast food and higher-quality products. In the this segment of the market,

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Chipotle competes against other fast food restaurants such as Jack in the Box, Qdoba and Taco
Bell but the company has been able to stand out through its very simple strategic decisions.
Product Differentiation
The companys mission which is based on providing food with integrity has been a
consistent theme throughout the history of its rapid growth. To fulfill this mission, Chipotle
sources for food ingredients in such a way that is friendly to farmers, animals and the
environment. This has gone well with customers, as this move have shown their support for local
farmers; respect and protection of animal rights; and respect for the environment. Secondly, the
companys focus on providing fresh and naturally raised ingredients aligns well with the healthy
eating trend under way across the United States. Finally, the quality of its ingredients reflects on
the food, as they taste fresher and appetizing than any found at a competitors restaurants.
This has led to noticeable consumer traffic, which shows that the companys earnings
through the same store sale increased by 6.2% (Ruetschlin, 2014). This figure is higher than
what was reported by other competitors within the same period.
Disciplined Growth
Chipotle with over 1,700 locations has continued to be a successful business venture due
to the remarkable and sustainable growth it has experienced overtime. This continuous growth
can be linked with the companys cautious and well-ordered approach to growing the brand. The
discipline has been established by the companys unspoiled and debt-free financial condition,
which has allowed it to remain a solid investment. The fact that the company cash flow allows it
to increase its store total by more than 10% in 2013 is remarkable (Lawrence, 2013).
The company adopted a growth strategy, that allowed it to own and retain control over all
its restaurant locations has accelerated growth. Though a franchise model can fast-track growth

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and allow it to be profitable (Kaufmann, P. J., & Kim, S. H. 1995), but Chipotle decision not to
allowed management to control the quality of food and customer experience in such a way that
other competitors like Jack in the Box cannot.
Approach to Business (People-first culture)
Unlike other competitors in the market, chipotle closes for major holidays. This affords
the employees the opportunity to spend qualitative time with families and friends. The company
also has a special approach for training and developing employees (Patterson, West, Lawthom, &
Nickell, 1997). This approach has led to an impressive stats, which shows that majority of the
salaried managers have been internally promoted from hourly position, facilitated through this
unique approach to development
A Winning Recipe
The choice of providing quality ingredients, careful expansion, and highly motivated
employees has proven to be a success and a simple idea to understand. The companys dedication
to each strategy is simply unmatched by its competitors, thereby creating a very commanding
competitive advantage. This advantage so far has driven Chipotle to new heights, and the
possibility that such a growth will be troubled is seen as a dream.
Advertising and Marketing Campaigns
The companys choice of using ingredients from sustainable sources in its menu has been
a great source of success. The company is also aggressively disseminating the message through
advertising and marketing campaigns (Belch, & Belch, 2003), which has constantly led
customers into its doors. The company is succeeding by running ads and promotions campaigns
that connect with the companys philanthropic efforts. For example, it established the Chipotle

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Cultivate Foundation that aims to grow food that doesnt exploit the farmers, the animals and
environment.
Distinctive Competencies
Supply Chain
The company has been able to build a regular supply of ingredients to the over 1700
outlets in the United State. This is because; it has been able to build a very close relationship
with farmers. Currently, the company works with 23 independently owned and operated a
regional distributor that works with suppliers that have been carefully selected. To become a
member of this system, the supplier must show understanding of Chipotles mission, while
seeking to develop a commonly favorable long term relationship (Chipotle Mexican Grill, 2014).
The union between chipotle and its suppliers has reduced the uncertainty in prices of ingredients,
and possibly reducing supply shortages.
Chipotle has also experienced a considerable growth over the past five years. This has
been motivated by growing revenue in existing restaurants and the opening of new restaurants in
the United States and some abroad. This has given the company an edge over its competitors,
and the company intends to carry on this trend in the future.
Distinctive Mission Food with Integrity
Chipotle core mission of Food with Integrity goes further than offering its customers
high quality ingredients. The companys focused menu also allows the firm to cautiously
examine the origin of each of its ingredients, while selecting the best suppliers for it and
customers. This contains none genetically raised meat, naturally grown farm produce, and dairy
produce from cows that are exposed to green pastures.

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Though the company has faced challenges in the past, while pursuing its Food with
Integrity initiative. It has however improved, and it is very keen on providing its customers with
high quality ingredients that are raised or grown responsibly.
Culture of Top Performer
In order to enhance its customers experience, Chipotle hires the best employees for all
positions within the company. This strategy has allowed the company to attract and retain quality
employees and potentials, by offering an attractive and long termed career opportunity. The
outcome has been impressive, as 97% of salaried managers, and over 98% of hourly managers
have emanated from internal promotions.
In the process of developing management and in-store operations, Chipotle emphasizes
on the significance of process and culture; the front line of employees that customers relate with,
and holding on to the fundamentals that have led to the companys success.

Measurements (Financial Analysis)

Chipotle Mexican Grill is a limited-service restaurant that operates in more than 1800 fast
casual locations, with the majority of the restaurants located in the United States, and with a few
in Canada, Germany, United Kingdom and France. According to Market Realist (2015) the
company has over 45,000 employees, and its customers forms about 1% of Consumer
Discretionary Select Sector.
2015 Second Quarter Earnings
The company reported earnings per share of $4.45 in July 2015 (Appendix B). This was
an increase of 27.1% compared with what it earned at the same quarter in 2014. Year-to-date

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stock is up by 2%, and the broader Consumer Discretionary Select Sector SPDR ETF
(XLY) is up 10% year-to-date.
It also reported a 2nd quarter with earnings per share of $0.45 that beat forecasters
evaluations of $0.43. Though the companys share went up by 2.2%, at $687 (Appendix C), but
the Same-Store Sales growth came in significantly lower, it was still in line with the
managements direction of low to single digits.
Same-Store Sales Growth
The companys revenue growth in 2015 impacted highly on its Same-Store Sales Growth,
as it dropped by 4.3%, compared to 17% in 2014 (Appendix D). This shows that, the inclination
for sale growth appears to be having a greater effect on traffic, which management has little
control over.
2015 Second Quarter Sales Growth
The company sales growth for the 2 ND quarter of 2015 shows a decrease in the
companys growth from 28.6% to 14.1%., which has affected the companys share price. The
chart below shows that Chipotles sales growth has impacted negatively on the companys share
price, which is coming in lower than what was projected.
Key Financial Highlights
According to Market Realist data (2015), the company experienced several positive
metrics in its 2nd quarter report for 2015 and they are detailed below.

Total sales were $1.2 billion, compared with $1.05 billion a year ago in 2014. This is a

14.1% growth in sales (Appendix E).

Restaurant level margins improved to 28%, compared with 27.3% in the matching quarter
a year ago. This improvement is driven by reduction in food costs, which was lowered by

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1.5% year-over-year, or 33.1% as a percentage of sales. The lower food costs are brought
about a lower dairy and avocado cost. According to the company, beef costs added 1% to

the food costs, but it expects the beef costs to remain elevated.
Labor costs increased by 0.8% to 22.6% as a percentage of sales, due to ineffective labor
scheduling and execution, according to the company. Hourly labor rates also saw a 4.2%

increase during the quarter.

The tax rate for the quarter was 38.8%.
The company holds about $1.5 billion in cash on its balance sheet and has zero debt.
Current Issues
Slowing sales growth and Profit - according to WSJ, the second quarter report of 2015,

showed that sales growth and profit slowed down compared to what was experienced at the same
period last year. This modest growth is expected to linger on till next year. The reason for this
slow movement can be related to activities of competitors, suspension in pork sales at most
restaurants, and difficulty in attracting workers to meet up with the growth targets.
Supply shortage of pork that has or could lead to further reduction in sales and revenue In most of its restaurants, Chipotle recently stopped serving its customers the Carnitas, which is
essentially made of pork meat. The reason for this move can be related to shortages that ensued
because of animal welfare auditors. It was discovered that, one of the suppliers violated some the
company's core animal welfare standards; hence procurement from that supplier was suspended.
The discovery made it difficult to supply more than one-third of the company's restaurants with
carnitas.
Challenges attracting and retaining employees. - The restaurant industry can be
categorized as a labor intensive market. The nature of the industry, however this does not
correspond with the strengthening economy and growing demand for restaurant meals. Hence,

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this will seriously affect the company's ability to recruit and train individuals to man the various
new locations they intend to open.
Supply chain problems - Chipotle recently stopped serving its customers pork at various
restaurants across the United States, due to its stringent standards for how the animals should be
raised and fed. This shortage started when the company cut links with one of its supplier that
desecrated its standard, on the use of hormones or antibiotics, and letting the pigs has access to
the outdoors. This action led to the company finding a replacement that could meet up with its
guidelines. Though this issue has been resolved, and supply has increased to 90%, the company
however will have problems with its planned expansion or growth, which could also affect other
menu ingredients.
Attacks from critics - In recent times, Chipotle has been experiencing negative criticisms
from the Center for Consumer Freedom. The non-profit making organization claims that,
chipotle is deceiving customers that its foods are healthy and free of added hormones. This can
be considered as a negative PR for the company, which is marketing itself to customers as a
healthy option.
The rejection of Mexican Food or other offerings abroad could limit Chipotle's
international growth. One of the method adopted by Chipotle to increase growth is through
international expansion. This strategy presents the company with higher risks, due to lower
customer responsiveness and unfamiliarity with the market.
Chipotle inability to incorporate its current business plan or model, into other newer
businesses and food. This has resulted in waste and hindered growth.
An increase in the price(s) of commodities, will affect the company's margin in the
current business model.

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Because of Chipotles high standard of ingredients, it usually buys its ingredients from
small suppliers. In the case of shortages, the suppliers will be the first to be reduced.
Recommendations
Successful restaurant launches abroad could significantly expand Chipotle's potential
market. In order to actualize this objective, the company has to invest resources in promoting and
enlightening its target audience of what they stand to gain by patronizing the company.
The company should also implement the same business model for all of its other business
(such as ShopHouse, Southeast and Asian Kitchen). As this could catalyze its growth in other
markets within the industry.
In order to reduce the effect of shortages on sales and growth, the company should seek
greater alliance with other farmers and suppliers for the supply of its ingredients. An increase in
suppliers could help increase its growth margin
The company should also increase the awareness level of conscious eating. By doing this,
Chipotle will increase and bring about more attention to its "Food with Integrity" business model
and bring in more loyal customers.
Conclusion
In the fast casual industry that Chipotle competes, the market has proven over time that
there are non-existing switching cost; there is an ever increasing competitions, and there are little
to no barrier to market entry. Chipotle has been able to compete and actually create a niche for
itself through strong brand recognition, increased effort on food with integrity program,
continued expansion effort, sales initiatives and healthy competition that has led to healthy
finances and attractive valuations.

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So far Chipotle has been able to sustain a slender economic channel given its brand
intangible assets and "food with integrity" intonation. And as such, they have succeeded in these
effort by becoming the first restaurant chain to use GMO free foods in 2013. In order to do this,
Chipotle has a solid control over their food suppliers comparative to their size, by letting them to
provide quality organic ingredients to meet the demands of the growing population of health
conscious consumers.

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from:

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http://www.demos.org/publication/fast-food-failure-how-ceo-worker-pay-disparityundermines-industry-and-overall-economy
Schoultz, M. (2014, January 22). A story about chipotles non-traditional marketing strategy.
Digital Spark Marketing. Retrieved from:
http://www.digitalsparkmarketing.com/creative-marketing/non-traditional-marketing/

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APPENDICES

APPENDIX A

Chipotles position among its competitor

APPENDIX B

Chipotle Diluted Earnings per Share

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CHIPOTLE STRATEGIC PLAN

APPENDIX C

Chipotles Price Movement

APPENDIX D

Chipotle Same-Store Sales Growth Impact

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CHIPOTLE STRATEGIC PLAN

APPENDIX E

Chipotles Stock Performance Driver

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