Chipotle Strengths And Weaknesses

Overall, one could go into “information overloads “when analysing the Chipotle Mexican Grills business model. The company is impressive and appears to be financially stable. They are the leaders of fast casual dinning since it was first founded in 1993.The company has weaknesses, but they are not alone. What differentiates Chipotle from its rivals is how they are identifying and reacting to those weaknesses. It is clear that the company’s opportunities and strengths certainly out way its weaknesses and threats. Because there are so many new innovations within the fast food industry, and the extreme competition in the industry, I am confident that Chipotle will be able to overcome the external factors by innovating, reducing costs and expansion,

wherever necessary. They just recently introduced efforts to enter an Asian cuisine, but no details have been released about the location at this time. Undoubtly, the shareholders are pleased, as Chipotle has no long-term debt commitments; they are above the industry average in with a current average rate of 4% over the last five years. Panera falls just behind with an average current ratio of 3.25 since 2006. McDonald’s, Yum! Brands and Jack in the Box are all close to the industry average of 1.4 (Grinn, 2011).Nevertheless, Chipotle will have to continue to stay with its mission because consumers are aware that lower prices don’t always compare to first-class quality.