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Chipotle Financial Analysis Essay

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customers. The final value is added with good employees, great customer service and environment friendly practices and locations. According to the financial analysis Chipotle has a good performance. Asset turnover ratio of 1.592 in 2011 has decreased from 2010 but it still shows that Chipotle is able to convert its assets into sales very quickly. Inventory turnover ratio has decreased from 189.7 in 2010 to 188.6 in 2011 which shows that they have more inventories now but are still able to turn it over very efficiently. Liquidity ratios, Quick ratio and current ratio are well above 1 which signifies good financial performance. Current ratio of 2.75 in 2007 improved to 3.183 in 2011 but decreased from 3.301 in 2010 to 3.183 in 2011 which could be a problem in a long-run but now it’s still good compared to the industry levels. There is an upward trend when it comes to earnings per share which makes it more favorable for the investors and shareholders to invest in the company and get a good return on the investment. The profitability margins show that Chipotle is very profitable. Operating margin …show more content…

Chipotle’s operating income increased from $108.2 million in 2007 to $350.6 million in 2011 equal to CARG of 34.2%. Chipotle’s operating profit margin was 15.4% in 2011, 15.7% in 2010, 13.4% in 2009, 10% in 2007. Net income increased from $70.6million in 2007 to $214.9 million in 2011 a CAGR of 32.1%. EPS was $2.13per diluted share in 2007 and in 2011 was $6.76 per diluted share in 2011, a CAGR of 33.5%. Net cash provided by operating activities has been increasing from $146.9million in 2007 to $411.1 million in 2011, a CAGR of 29.3%. Average annual sales for the restaurants that have been opened at least 12months have increased from 1.085million in 2007 to 2.013million in 2011 which has a CAGR of 16.1%. The comparable restaurant sales increases of 11.2%, 9.4%, 2.2%, 5.8% and 10.8% are very

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Chipotle’s founder, co-CEO, and Chairman Steve Ells opened the restaurant Chipotle with a belief that “food served fast did not have to be low quality and that delicious food did not have to be expensive” (Thompson p.300). Since the opening of Chipotle Mexican Grill, the founder Steve Ells, has not looked back and has expanded Chipotle from a 1-unit operation in Denver into 1,458-unit operation in 43 states, the District of Columbia, Canada, the UK and France serving more than 900,000 customers a day. It comes as no surprise that a Wall Street analyst termed Chipotle Mexican Grill as “the perfect stock”, while another analyst stated that “Chipotle could well prove to be the next McDonald’s” (Thompson p.300). Chipotle has become one of the

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Chipotle is one of the most successful restaurant in the U.S. but every organization got some weakness and problems, today I would like to share with you what is the biggest chipotle’s problem ever that cost this restaurant a lot of money and lose trust from costumers and bad image in the media which is POISONING !! :- The fifth-biggest multistate sustenance harming flare-up of 2015 was the E. coli episode connected to nourishment served at Chipotle eateries in nine states. No less than 52 people were sickened, 20 of them were hospitalized. The episode was one of a few nourishment harming flare-ups connected to Chipotle this year including a Salmonella flare-up that sickened more than 60 individuals in Minnesota.

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