Industry Analysis- Chipotle Mexican Grill

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Industry Analysis Paper Chipotle Mexican Grill David Fisher California State University, Monterey Bay May 20, 2012 Abstract This paper will be divided into several parts and will look at the company I have selected as well as the industry the company operates in. The purpose of this paper is analyze the company history, financial performance, the industry competitive environment, the importance of the industry and economic relevance to the overall US economy, and how US Government policy is applied and should be applied to the industry I have chosen. I have selected Chipotle Mexican Grill as the company that I will analyze on its economic performance and its relevance in the industry that Chipotle competes in. The industry that Chipotle competes in is the restaurant industry and more specifically the fast food segment of the restaurant industry. Chipotle has enjoyed much success since its inception in 1993 due mainly to sticking to a simple concept and evaluating market data and store location data in an effective manner. Chipotle is faced with increased competition, rising food costs, and possible expanded international expansion. History of Chipotle Mexican Grill The company that I chose to analyze is Chipotle Mexican Grill, Inc. The restaurant was founded by Steve Ells in 1993 when Ells opened the first Chipotle Restaurant in Denver, Colorado. The restaurant was opened as a means to raise funds to open a gourmet restaurant. Based on the success of the first restaurant, Ells opened 8 more Denver area Chipotle Restaurants by 1996. Mc Donald’s Inc. became a major investor in 1998. In 1999, Chipotle opened its first two restaurants outside of Colorado in Minneapolis, Minnesota and Columbus, Ohio. Mc Donald’s became the largest investor in Chipotle and when the company decided to concentrate on its core business, Mc Donald’s divested all
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