Chipotle Top Line To Grow By 12% in 2019
Chipotle Mexican Grill (NYSE: CMG), whose stock is currently trading at around $809, generates its revenue from its Company operated Stores across the US with some stores (less than 2%) also present in Canada and Europe. In this note we discuss the historical performance, and expected Total Revenue for FY 2019. You can look at our interactive dashboard analysis ~ Chipotle’s Revenues: How does Chipotle make money? ~ for more details. In addition, here is more Consumer Discretionary data.
Chipotle Business Model:
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What Does CMG offer?
- Chipotle Mexican Grill features a menu of burritos, burrito bowls (a burrito without the tortilla), tacos, and salads.
- The idea was to show that food served fast didn’t have to be a typical “fast-food” experience. Using high-quality real ingredients, classic cooking techniques, and distinctive interior design, Chipotle brought features from the realm of fine dining to the world of quick-service restaurants.
- The Chipotle restaurants are primarily situated in the US and are fully company owned and thus reported under a single segment.
- Major competitors are companies like: Taco Bell, McDonald’s, Domino’s, KFC, and other fast food chains.
What Is The Basis of Competition?
- The fast-casual, quick-service, and casual dining segments of the restaurant industry are highly competitive with respect to, among other things, taste, price, food quality and presentation, service, location, brand reputation, and the ambience and condition of each restaurant.
Chipotle’s Total Revenue has grown by 24.6% between 2016 and 2018, and is expected to grow by 12.2% in 2019:
- Total Revenue has seen a steady and consistent growth over the years. It increased from $3.9 billion in 2016 to $4.9 billion in 2018. Trefis estimates it to increase to $5.5 billion in 2019.
- The restaurant growth is instrumental to the growth of revenue along with the average revenue per restaurant. Trefis estimates average number of restaurants to be more than 2,550 by the end of 2019.
- Average revenue per restaurant has seen a steady and consistent growth over the years. The metric increased from $1.8 million in 2016 to $2 million in 2018. Trefis estimates it to increase to $2.1 million in 2019.
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