Chipotle's Performance Targets

Company’s Current Performance, Strategic Vision & 2-year Performance Targets

Over the years more individuals have become concerned about the health risk associated with conventional food products. This concern can be associated with the growth experienced by Chipotle. Davis et al (2006) identified animals raised free of antibiotics, genetically modified (GMO) feed, and additional hormones as being organic. Chipotle entered the fast food industry as a member of the organic food industry. Restaurants who have embraced the use of organic ingredients have seen an increase in support from consumers. According to Leahy (2006) the need for organic food is well documented, and has thus seen a growth in grocery stores, and independent restaurants on

Chipotle’s competition includes a variety of restaurants, including locally owned restaurants, national and regional chains. Many of Chipotle’s competitors carry-out, offer dine-in and delivery services. Unlike Chipotle, a number of their competitors expanded through franchising. Their competitors compete by offering menu items that are specifically identified as low in carbohydrates. Competitors in the fast-casual and quick-service section of the restaurant industry also emphasize their lower-cost, “value meal” menu options, a strategy not employed by Chipotle Competition for Chipotle also comes from the deli sections and in-store cafés of several major grocery store chains, These competitors may have, among other things, a more diverse menu, lower operating costs, better locations, better facilities, better management, more effective marketing and more efficient operations than

However, the events of 2015 has sent their stocks on a downward spiral, which has affected their overall outlook. The strategic move of focusing more on their global market at this point could prove more beneficial. According to the Unites States Securities and Exchange Commission. (2014), Chipotle began their expansion to global markets. Chipotle has approximately 16 restaurants located outside of the United States. As a strategic move to combat their current issues in the United States it would be ideal to strengthen their overseas locations. The biggest hurdle faced by Chipotle in their overseas expansion would be a lack of brand recognition. Chipotle has recognized this need to build brand awareness in the international market. They have also identified the ways in which they would be able to achieve this goal. “We may need to make greater investments in advertising and promotional activity than we originally planned”, Unites States Securities and Exchange Commission. (2014). Chipotle has identified areas of concerns which they would need to improve on to maintain or gain market