Chipotle Mexican Grill Profile
Chipotle Mexican Grill, Inc. owns and operates Chipotle Mexican Grill restaurants, which feature a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads.
The company strives to cultivate a better world by serving responsibly sourced, classically cooked, real food with wholesome ingredients and without artificial colors, flavors or preservatives. The company passionates about providing a great guest experience and making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose. The company’s revenue is derived from sales by its restaurants.
Strategy
The key elements of the company’s strategy include sustaining world class people leadership by developing and retaining diverse talent at every level; running successful restaurants with a people accountable culture that provides great Food with Integrity while delivering exceptional in-restaurant and digital experiences; making the brand visible, relevant, and loved to improve overall guest engagement; amplifying technology and innovation to drive growth and productivity at its restaurants, support centers and in its supply chain; and expanding access and convenience by accelerating new restaurant openings in North America and internationally.
Digital Business
The company’s digital platform continues to be a strategic driver of its growth. In recent years, the company has significantly upgraded its capabilities by digitizing its restaurant kitchens, expanding its partnerships with third-party delivery services and building more Chipotlanes, which is its drive through format for customer pick-up of digital orders. Digital sales represent food and beverage revenue generated through the Chipotle website, Chipotle app or third-party delivery aggregators and include revenue deferrals associated with Chipotle Rewards. Digital sales represented 37.4% of food and beverage revenue in 2023. The company has made digital ordering convenient with enhancements to the Chipotle app and website, such as customization, contactless delivery, and group ordering and it has improved the overall guest experience within the app with the inclusion of order readiness messaging, wrong location detection and reminders to scan for points.
Seasonality
Seasonal factors cause the company’s profitability to fluctuate from quarter to quarter (year ended December 31, 2023). Historically, the company’s average daily restaurant sales and net income are lower in the first and fourth quarters due, in part, to the holiday season and because fewer people eat out during periods of inclement weather (the winter months) than during periods of mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on the company’s results. For example, restaurants located near colleges and universities generally do more business during the academic year.
The company’s quarterly results are also affected by other factors such as the amount and timing of non-cash stock-based compensation expense and related tax rate impacts, litigation, settlement costs and related legal expenses, impairment charges and non-operating costs, timing of marketing or promotional expenses, the number and timing of new restaurants opened in a quarter, and closure of restaurants.
Trademarks
Chipotle, Chipotle Mexican Grill, Food with Integrity, Responsibly Raised, Chipotle Rewards, and a number of other marks and related designs and logos are U.S. registered trademarks of Chipotle. The company has filed trademark applications for a number of additional marks in the U.S. as well. In addition to its U.S. registrations, the company has registered trademarks for Chipotle and a number of other marks in Canada, the European Union, the Middle East and various other countries, and has filed trademark applications for Chipotle Mexican Grill, Chipotle and a number of other marks in additional countries.
History
Chipotle Mexican Grill, Inc. was founded in 1993. The company was incorporated in 1998.
