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How Chipotle Makes Money

Chipotle's more than 3,300 U.S. stores and soaring digital sales drive revenue

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Updated March 26, 2024

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Chipotle Mexican Grill Inc. (CMG) operates a major restaurant chain serving fast-casual Mexican food, including burritos, tacos, bowls, and similar dishes. The company operated 3,371 domestic and 66 international locations as of Dec. 31, 2023. Chipotle's primary competitors include fast food chains such as Taco Bell and other brands affiliated with Yum! Brands Inc. (YUM), fast-casual restaurants such as Qdoba Mexican Eats, and other rꦑestaurants near Chi🍰potle locations.

Key Takeaways

Chipotle Mexican Grill operates a chain of over 3,300 fast-casual Mexican restaurants in the United States.
Digital sales represented 37.4% of food and beverage revenue in 2023, compared to 39.4% in 2022.
In 2024, Chipotle approved a proposal for a 50-for-1 stock split.

Chipotle's Industry

Chipotle is part of the fast-casual, quick-service sector of the restaurant industry. The company's competition includes locally-owned restaurants, national and regional chains, and food delivery services. This industry segment includes restaurants that offer dine-in, carry-out, online, catering, and delivery services serving quality ingredients at a reasonable price.

Chipotle's Fundraising and Financials

For fiscal year (FY) 2023, Chipotle reported a total revenue of $9.9 billion, an increase of 14.3% over 2022. Food and beverages accounted for 99% of total revenue for the year. Delivery service revenue accounted for the remaining 1%. Chipotle offers opportunities for organizations to host fundraising activities and earn a 25% giveback from event sales. As of 2024, over 342,000 events have been hosted, raising $95 million.

History and Leadership

Chipotle opened in 1993 in Colorado, where founder and former CEO Steve Ells served burritos inspired by the San Francisco Mission District. The company emphasizes the connection between how food is raised and prepared and is one of the first restaurant brands to focus on local and organic produce. As of 2024, Brian Niccol is the Chairman of the Board of Directors and Chief Executive Officer for Chipotle Mexican Grill. Before his current role, Brian Niccol served as CEO of Taco Bell, a division of Yum! Brands.

Recent Developments

In March 2024, Chipotle announced that its board approved a 50-for-1 澳洲幸运5官方开奖结果体彩网:stock split, a move that would lower Chipotle's stock price and make the stock more accessible to employees and a wide range of investors. Chipotle shareholders will gain 49 additional shares for each share they own as of the 澳洲幸运5官方开奖结果体彩网:record date of June 18, 2024, if the proposal is approved by shareholders at the annual meeting on June 6.

Are Employees at Chipotle Part of a Union?

As of Dec. 2023, Chipotle had 116,068 global employees. In the United States, 112,572 employees worked in restaurants, and 1,470 in Restaurant Support Centers. There were no union petitions or campaigns in 2023.

What Are Chipotle's DEI Policies?

Chipotle strives to maintain a diverse, equitable, and inclusive work environment. As of Dec. 31, 2023, U.S. employee statistics included 49.3% male, 49.3% female, and 1.4% other. Internal promotions for 2023 included 50% of promoted employees identifying as female and 39% of promoted employees identifying as Hispanic or Latino.

How Does Digital Ordering Affect Chipotle?

Over 37% of food and beverage revenue came from digital orders in 2023. This includes third-party delivery and customer pickup.

The Bottom Line

Started in 1993, Chipotle operates over 3,300 Mexican restaurants in the United States as of Dec. 2023. The company's mission pairs sustainable policies and organic food to offer a fresh product line.

Article Sources

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