Chipotle Mexican Grill Essay

Chipotle Mexican Grill, Inc. is a chain of restaurants located in the linked States, United Kingdom, Canada, and France, specializing in burritos and tacos. Its figure of speech derives from chipotle, the Mexican Spanish name for a smoked and dried jalapeno chili pepper. The restaurant is cognize for its large burritos, assembly-line production and use of natural ingredients. The company has released a complaint statement called Food with Integrity, which highlights its efforts in using organic ingredients,3 and serves more course raised meat than any other restaurant chain.Chipotle is one of the world-class chains of fast casual dining establishments. Founded by Steve Ells in 1993, Chipotle had 16 restaurants (all in Colorado) when McDonalds Corporation became a major investor in 1998. By the time McDonalds fully divested itself from Chipotle in 2006, the chain had kindlen to over 500 locations. With more than 1400 locations in 43 U. S. states, Washington, D. C. , two Canadia n provinces, the United Kingdom, and France, Chipotle had a net income in 2012 of US$278 million and a stave of 37,310 employees.Chipotle Mexican Grill in 2012 2012 has been the year of Chipotle Mexican Grill (CMG -0. 92%). The communication channel is an absolute superstar, hitting 37 new record highs so far, according to CNBC. -When the company went public in January 2006, the stock doubled on its first day from $22 per share to close at $44 per share. At late of Febuary 2012, Chipotles stock price had climbed to $380-$385,up more than 80% since january 1,2011 and up 334% since january. Chipotle shares traded at $421. 37 Mar 27, and are up just round 26% this year. Over the last 12 months, the stock has gained 65%.Chipotles run has obviously been the subject of much chatter among investors. Why is this stock so high, and how much further can it go? Many investors speak up that Chipotles numbers are just headed up, and the stock has room to grow as well. Chipotles growth is m entioned with the launch of ShopHouse, the Asian-themed restaurant the company has open up in Washington D. C. ShopHouse has been wildly popular with little to no advertising. The winner had opened up the possibility that Chipotle could very well strike coin a second time.The company isnt saying much about whether it will expand ShopHouse, just investors are certainly pricing the view into Chipotle shares. Chipotle has no debt and about $400 million in cash, according to seek Alpha. And Chipotle is in that best-of-both worlds position because it can compete directly with fast food, but also stand up against more upscale restaurants, such as Panera Bread (PNRA -1. 01%). Finally, Chipotle is gunning for international expansion, recently opening new locations in capital of the United Kingdom and planning one for Paris.