hipotle (CMG CMGChipotle Mexican Grill Inc273. 53-2 12% Made with Highstock 4. 2. 6) is often a Mexican grill restaurant having a limited menu and a advanced of food customization. The restaurant was first opened in 1993 and currently has greater than 1,700 stores in U. S. and abroad. McDonald's (MCD MCDMdDonald's Corp. 168.65 + 0.33% Made with main stock 4. 2. 6) had controlling desire for restaurants in the early 2000s but divested after Fast Food Places That Deliver In My Area IPO in 2006. Since the IPO, Chipotle's share has increased from $ 42 to around $ 650 but still certainly be a long-term investment opportunity.
Motto Chipotle "food with integrity" was inspired by founder Steve Ells who learned about American food production. Ells is committed to serving ethically and naturally produced foods, which Chipotle claims produces more delicious meat than another restaurant. In 2013, Chipotle implemented a no-GMO policy for its materials.
Consumers agree Although higher food costs cause Chipotle to boost prices by 2014, the identical store sales grew by 16. 8 percent, store margins rose to 27.2 percent and net profit increased by 36 percent. Chipotle opens 192 new stores in 2014 and hopes to spread out another 200 by 2015.
Why? Because books and documentaries showing the negative side of the junk food industry have become popular, Fast Food Places That Deliver In My Area profits are increasing. Consumers who want healthy food choices tend not to order salad at McDonald's and
Wendy's (WEN WENTY Wendy's Co15 02-1 44% Made with Highstock 4. 2. 6), looking for natural foods that are raised or produced organically. (For more, see: Feed Your Appetite For Chipotle Stock with Options.)
One of the secrets of Chipotle's success is its small menu. The smaller menu has three benefits. First, because Chipotle only stores fresh ingredients, there is always the potential of food spoilage. The small menu cuts down on the quantity of material required in the hand, thereby lowering the possibility of waste.
Secondly, small menu means fast service. In other junk food restaurants, the kitchen may be overwhelmed with orders and will make mistakes. At Chipotle, the error is nearly impossible: order a soft taco, pick a patch and pay. If employees forget to add nuts, consumers watch and will show negligence. Easy and fast and consumers like it.
Finally, small menu entails customers understand specifically what's sold if he or she look at the restaurant. Chipotle need not develop new products or make striking to share with consumers about its offerings, and consumers are not disappointed with product loss from a trial or promotion period.
It may be thought that the miscroscopic menu is detrimental: exactly why do consumers want to limit their choices? Chipotle has thought over it, and the policy would be to result in the goods consumers want in the event the ingredients can be obtained. This policy has resulted in the creation of Quesarito, Chipotle Nachos and more secret menu items.
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