Chipotle has been an established player in the Mexican casual fast food industry since 1993. They are currently the 2nd largest Mexican fast food restaurant, only behind Taco Bell in terms of sales.1 Chipotle sells its product as one of the freshest, highest quality Mexican establishments with the convenience of ordinary fast-food. They offer premium ingredients all sustainably sourced. Despite being the second largest Mexican fast-casual restaurant, Chipotle’s revenue reached $3,904,384 in 2016 growing 42.95% since 2012, gaining a huge portion of market share in the process.2 While EPS may have dipped from $8.82 in 2012 to $.78 in 2016, it quickly recovered to $6.19 in 2017 and revenue reached 2015 levels again at $4,476 million.3 Chipotle’s promise of fast food with high quality ingredients has helped it gain massive popularity and, as a result, revenue in recent years.
Chipotle’s Business
2012
2013
2014
2015
2016
Revenue
$2,731,224
$3,214,591
$4,108,269
$4,501,223
$3,904,384
EPS
$8.82
$10.58
$14.35
$15.30
$.78
Qdoba’s Business Past and Current
Qdoba is another casual Mexican fast food establishment, it was recently acquired by Apollo, from Jack in the Box, at the end of 2017. By following sustainability standards set by the fast-food industry, instead of aiming to be
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Supply chain oversight led to a past E Coli outbreak at some Chipotle stores, leading to a formal investigation by the FDA and plenty of negative press.7 Chipotle was never able to fully identify the cause of the outbreak, meaning outbreaks like this in the future are possible. Chipotle suffered greatly from its first outbreak, seeing a revenue decrease of 13.26% during the height of the outbreak, from 2015-2016. If Chipotle is unable to strengthen its supply chain, future outbreaks will likely cause crippling revenue (and customer)