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Chipotle Mexican Grill SWOT Analysis 2013

Table of Contents

About Chipotle .. 3

Financial Highlights 4

Chipotle SWOT 2013...5

Works Cited.....6

About Us
When Chipotle (pronounced chi-POAT-lay) opened its first store in 1993, the idea was simple: demonstrate that food served fast didn't have to be a "fast-food" experience. We use high-quality raw ingredients, classic cooking methods and distinctive interior design--features that are more

frequently found in the world of fine dining. When we opened, there wasn't an industry category to describe what we were doing. Some 16 years and more than 900 restaurants later, we compete in a category of dining now called "fast-casual," the fastest growing segment of the restaurant industry, where customers expect food quality that's more in line with full-service restaurants, coupled with the speed and convenience of fast food. We try to do a few things really well. We elevate basic raw ingredients into food that's richer and more sophisticated through our recipes and cooking techniques. Similarly, our restaurant design transforms simple materials in distinctive ways, giving our restaurants a style that's more architectural in nature and less dependent on standardized design elements. Our focus has always been on using higher-quality ingredients and cooking techniques to make great food accessible to all people at reasonable prices. But our vision has evolved. While using a variety of fresh ingredients remains the foundation of our menu, we believe that "fresh is not enough, anymore." Now we want to know the sources for all of our ingredients, so that we can be sure they are as flavorful as possible while we are mindful of the environmental and societal impact of our business. We call this idea, Food With Integrity, and it guides how we run our business. 1

Financial Highlights

*In thousands except for Stock prices

Years
Net Sales Total Operating Expenses Net Income(loss) Stock Price (Dec , 31)

2012
$2,731,224 2 $2,275,359 2

2011
$2,269,548 2 $1,918,986 2

2010
$1,835,922 2 $1,548,0912

$278,000 2 $290.53 3

$214,945 2 $337.74 3

$178,981 2 $212.66 3

Strengths
Comps increased 6.2%, a huge increase by anyone's standards.4 Animated commercial with a pointed message about sustainable farming.5 Innovative and amazing public relations.6 socially responsible7

Weaknesses
Chipotle plans to raise prices anywhere from 3% to 5%7 Newly-opened stores are in second-tier locations9 Profit margin isnt what was expected

Opportunities
Including European expansion, the launch of a new concept and the possible addition of breakfast.8 Menu Expansion Expansion through America Become completely GMO free

Threats
Food cost issue has hit the whole industry, but it's a particularly complicated issue for Chipotle since it's trying to provide 100% GMO and hormone-free food. 4 New GMO restaurants becoming popular Rivals copying traits that chipotle offers. 9 Extreme weather might increase food costs this year and next.10

Work Cited
1) ABOUT US, CMG, Chipotle.com , 2013

CMG Annual Report and proxy statement , CMG , 2012, P.g41 Historical Price Lookup, CMG, ir.chipotle.com, 2013 3 Huge Takeaways from chipotles killer Quarter , Jon Quest , Fool.com, October 20, 2013 Chipotle Returns to Animation to Support Sustainable Farming, Stuart Elliott, New York Times, September 16 , 2013 6) Test Run: What mobile payments companies can learn from chipotle, Jenna Wrotham, New York Times , April 12, 2013 7) Chipotles Stock Just keeps soaring , Daniel Sparks , Fool.com, October 20, 2013 8) Chipotle eyes growth opportunities , Lisa Jennings, Nations Restaurant News, July 21,2011 9) Why Chipotle Mexican Grill is Poised for Another Fall , Street Authority , Jutia Group, September 20, 2012 10) Restaurants stocks take a hit after weak Chipotle report , Andrew Robinson , Business First , Jul 20, 2012 2) 3) 4) 5)