Chipotle Swot Analysis Essay

I think Chipotle initially thought the food poisoning was restricted to one restaurant. Unfortunately it was not. After the second incident, testing should have immediately been implemented in all stores. It was positive Chipotle worked with state and federal health officials and conducted the deep cleaning in all restaurants.

Other core competencies are being able to shift to healthier food choices that were of value to its customers. Chipotle also was able to create a brand awareness and at the same time educating customers on choosing healthy food.

SWOT is strengths, weaknesses, opportunities, and threats.
S- Strength for Chipotle is the fast food/fine-dining experience
W – Weakness for Chipotle is the fact that very little advertising/marketing

An innovative product can increase product differentiation and value (V); can strengthen buyer demands – boosting sales. Another strategy is Chipotles ability to offer organic ingredients at an appealing price point.

Moe’s Southwest Grill has franchised restaurants and Chipotle has company owned restaurants.

Chipotle’s financial and operating performance:
• Chipotle was able to increase their profit margin from 2007 at 10% to 2010 at 15.7%. However there was a slight decrease to 15.4% in 2011
• CAGR – from 2007 – 2011 Chipotle’s total revenue increase at a compound annual growth rate by 20.2%
• Net income increased from $70.6 million in 2007 to a high of $214.9 million by 2011 – CAGR (32.1%)
• Net cash from operations rose from 2007 at $146.9 million to 2011 at $411.1 million
• Ratio improved to 3.18 in 2011 from 2.75 in 2007
• CAGR – 16.1% (average annual sales rising from 1.085 million to 2.013 million

Chipotle is in a strong competitive position. Taco Bell is the strongest and has the highest name recognition. Qdoba and Moe’s are the