Chipotle Mexican Grill

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Chipotle Mexican Grill (NYSE: [CMG]) is a Colorado-based chain of restaurants specializing in gourmet San Francisco burritos and tacos. Founded by Steve Ells in 1993, the restaurant is famous for its chunky guacamole, large burritos, and for being one of the first successful chains in the newer category of fast-casual dining establishment. Chipotle has an emphasis on quality, which results in slightly higher prices than other traditional fast food chains. Since 1997, the McDonald's Corporation has owned a majority interest in Chipotle, but on April 26, 2006, McDonald's, which at that time owned a 69% interest in the company, announced that it would be divesting its remaining interest by the end of the year.

Contents

1 History
2 Menu
3 Free Burrito Days
4 Music
5 External links
6 References

History

The first restaurant started in Colorado, near the University of Denver, and over 500 restaurants have since opened throughout the U.S.. Chipotle maintains strict control over its restaurants by not franchising any out; they are all owned by the corporation. This as seen with other chain restaurants, such as In-N-Out Burger, tends to translate into better service and higher quality of product. In 1997 McDonald's made an initial minority investment in the franchise. By 1999 it had grown to a controlling interest, and by 2005 it was 92%. The McDonald's connection allowed the firm to quickly expand, from 14 restaurants in 1998 to 480 at the end of 2005.

On October 25, 2005 Chipotle initially filed for its IPO. On December 23, 2005 in an updated filing Chipotle indicated the size of the offering would be approximately 6.3 million shares with a price of $15.50 to $17.50 per share. The price range was increased to $18.00 to $20.00 per share on January 23, 2006, an indication that the demand for the offering was strong. Morgan Stanley and SG Cowen led the offering. The public offering priced on January 25, 2006 at a price of $22 per share. The offering raised approximately $133MM in primary capital to fund new store growth. McDonald's sold $66MM, including the 15% greenshoe, which was exercised in full. On its first day as a public company, Chipotle stock rose exactly 100%, closing at $44.00/share

Burrito (filled with rice and either black beans or pinto beans)
Fajita burrito (a burrito with onions and green peppers grilled in soy oil instead of beans)
Burrito bol (no tortilla; suggested for people following low-carbohydrate diets)
Hard or soft tacos (no rice or beans)
Salad (served with a container of chipotle-honey vinaigrette)

and one of five fillings:

Chicken thighs marinated in a semi-spicy chipotle pepper adobo and grilled
Carnitas (shredded pork) seasoned with thyme, bay leaves, juniper berries, and cracked pepper; seared and then braised; virtually no spice
Barbacoa (shredded beef) seared and then braised in chipotle pepper adobo with cumin, garlic, and other spices; very spicy
Steak marinated in a spicy chipotle pepper adobo and then grilled; lean, medium-rare, and spicy
Vegetarian (guacamole – free on vegetarian, extra cost option otherwise)

There are various additional toppings. In addition, four salsa are available: a mild pico de gallo, medium corn, green-chile-based, and hot red-chile-based salsas. Shredded cheese, shredded romaine lettuce and sour cream (actually more similar in consistency to crème fraîche) can also be added at no extra cost. The price depends only on the filling ordered. Additionally, there are several so-called "secret items" not listed on the regular menu but available by request, such as quesadillas. Tacos can also be ordered individually.

Chipotle is also noted for its ability to handle fax orders, making it popular among office workers picking up lunch. In late 2005 Chipotle added the ability to order online using the moniker "DSL" or "Don't Stand in Line". As with faxed-in orders, those who have placed their orders online may skip to the front of the line to pay for their already-prepared food.

Latching on to the health food craze that gripped the nation, and keeping in line with their "Food With Integrity" mission statement, Chipotle is moving towards all natural ingredients. To date, Chipotle has all natural chicken raised without antibiotics on a vegetable diet, free range pork and beef as well as organic dairy products such as cheese and sour cream. Chipotle advertises its support of family farms, such as Niman Ranch (a co-op of family farms in the Midwest that raises free range pork and other livestock). Chipotle also keeps vegetarians and vegans in mind. Everything other than the meats, pinto beans (with bacon), cheese, sour cream, and honey vinaigrette for salads is vegan. The cheese is even made from vegetable based rennet to be suitable for vegetarians.

Despite the healthy image, the average Chipotle burrito weighs around one pound and can contain over 1,000 calories . Since McDonald's invested in Chipotle, it has become the fastest-growing chain of mexican-fare restaurants. However, the average meal from Chipotle has much less saturated fat compared to McDonald's, and it is easy to get a meal which has less than 20% of the daily saturated fat recommendation.

Many Chipotle locations also sell alcoholic beverages, such as Margaritas and Mexican & domestic beer, which is unusual among national chains in the fast-casual niche.

Free Burrito Days

One free burrito per customer may be redeemed annually at participating Chipotle locations on select days:

Tax Day April 15. Pick up the mock tax form BurritoEZ from your local participating Chipotle restaurant before or on Tax Day. Bring in the completed form on Tax Day for your free burrito. Not every location participated in this promotion in 2006.

Halloween October 31. Come dressed as a burrito. A typical response to this requirement is to dress up in aluminum foil, creating the appearance of a burrito still in the wrapper.

February 29. Occurs only on leap years. Buy a burrito on this day, and at the bottom of your receipt it will say you can redeem your receipt for a free burrito, valid for 2 weeks.

On Homecoming and Prom nights, young women receive a free burrito if they come wearing their dresses.

Music

All music played at Chipotle establishments is sent to the store from upper offices of Chipotle. This music can be found and sampled under the "Feel" section of their website. Also, they use Public Radio MusicSource, allowing anyone to purchase any music they list in their effort to support Public Radio and the Public Broadcasting Service.

External links

References