Chipotle Mexican Grill, Inc. and its subsidiaries (Chipotle) operate restaurants throughout the United States, as well as two restaurants in Toronto, Canada and one in London, England. As of December 31, 2010, Chipotle operated 1,084 restaurants. The Company’s restaurants serve a menu of tacos, burritos, salads and burrito bowls (a burrito without the tortilla). The Company manages its operations and restaurants based on five regions that all report into a single segment. As of December 31, 2010, the Company delivered ingredients and other supplies to its restaurants from 22 independently owned and operated regional distribution centers.
The Company’s customers can choose from four different meats, two types of beans, and a variety of extras, such as salsas, guacamole, cheese and lettuce. Ingredients used by the Company include chicken and steak that is marinated and grilled in its restaurants, carnitas (seasoned and braised pork), barbacoa (spicy shredded beef), and pinto and vegetarian black beans. Chipotle adds its rice, which is tossed with lime juice and cilantro, as well as cheese, sour cream, lettuce, peppers and onions, depending on each customer’s request. The Company uses various herbs, spices and seasonings to prepare its meats and vegetables. It also provides a variety of extras, such as tortilla chips seasoned with lime and kosher salt. In addition to sodas and fruit drinks, most of its restaurants also offer a selection of beer and margaritas. As of December 31, 2010, about 80% of its restaurants served naturally raised steak and about 86% of its restaurants served naturally raised chicken.
- Sales and profitability depends substantially on their ability to open new restaurants.
- Chipotle does not pay dividends to stockholders and uses retained earning to primarily finance operations and expanding their business.