How Chipotle’s Stock Exploded About 400% in Five Years | WSJ The Economics Of
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- čas přidán 12. 07. 2024
- Chipotle has faced food safety scandals, the coronavirus pandemic and the effects of inflation in the past decade-yet its revenue has more than tripled. How has the business model of the fast-casual restaurant chain helped it to thrive?
0:00 Chipotle’s revenue has more than tripled over the past decade
0:51 What makes Chipotle’s business model so successful?
3:03 How Chipotle’s online ordering gives it an even bigger boost
5:37 How Chipotle uses social media to retain and gain new customers
6:33 What's next for Chipotle?
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
#Chipotle #Economics #WSJ
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Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
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I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
Just research the name Angela Lynn Shilling. You’d find necessary details to work with a correspondence to set up an appointment.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
Chipotle is literally the only fast food restaurant that fulfills my three requirements when going out:
- Affordable
- Healthy
- Filling.
Same, plus vegetarian to boot
in cali it does not fill any of the above, maybe healthy? but if i wanted healthy i would have choose something else
i guess you ain’t watching your salt intake
Same. And so much better than Taco Bell.
I would question affordable issue here, it’s definitely more expensive than others
Hi , I enjoy your videos as I’m trying to learn about stocks. My husband and I had mutual funds years ago, but he didn’t like the returns and got out. Since then, we’ve made some profits through land sales. Even though I’m 66 and have never invested in stocks, I’d like to try with a small amount of money and see what happens. Any thoughts for me?
Personally, I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.
Well I recommend you make a diversification plan because it's been harder to build a good financial portfolio since COVID. My colleague suggested I hire an advisor, and I've actually made over $120K with their help during this market crash. They used defensive strategies to protect my portfolio and make profits despite the ups and downs.
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Thank goodness they introduced that separate processing line. I used to be so annoyed waiting while a 5 burrito order came in before me while it gets done and sits there.
I thought I was the only one...
Online was worse. I would have had order 20 mins ago and the would make like 5 ppl's order before me who just walked in.
Remember when a bowl was $6.50 and tortillas were free?
God bless you for speaking facts
I remember when gas was $1.25, too.
6.25 for chicken. Now $10. Ill pass
Sigh those were the days.
@@jackuzi8252 thank god gas is more expensive, carbrains need to be brought back to reality
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
*ROCHELLE DUNGCA-SCHREIBER* is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
build?
The Chipotle in my area has gone downhill dramatically in the last couple years. Tiny portions, cold food, dirty store, backed up online ordering, horrible attitudes. Last time I went I paid $13 for a cold burrito that was half the size of what you’re supposed to get.
Must be the one near me in Oak Cliff,Tx
This is a sole problem with management, some people who aren’t fit for the position get put in it and can’t run a store
Pretty much the same for me in IL. The food doesn't taste fresh like it used to and portions are meh. Prices are high like everywhere else.
I haven't experienced all of the things you mention, but smaller portions and longer lines are now the standard.
Exactly the same for me here in Nashua, NH
I have massive amounts of respect for Chipoltle's founder. That is a class act and well run business. Major kudos to him and his employees. Hats off. And the food's darn good too. :)
Chipotle may have never gave the guac for free... But those free sides of Norovirus (and Salmonella) back in the day, was to die for!
Yeah, i missed the wild west times of Chipotle back before the Founder got sacked... We called it Mexican Roulette, you never knew which burrito would infect you!
Lies again? Google Play Premier League
It's not a well run business if it continually has ecoli issues.
@@kvin9210does it? Is it so bad... I am curious
I’ve found that service and quality in the suburb locations are top notch and provides a great meal, but the opposite is true for the city locations. Messy restaurants, horrible staff attitude, poor food portions and quality are rampant at every city Chipotle I go to. I’ve also never seen a separate line for online orders, which leaves both types of customers frustrated as they wait for their food well past the pick up time.
We've gotten the seperate line for onlines. I worked for several in different cities.
Unfortunately the workplace culture is trash.
Still loved the food tho, holy moly, 5-6 meals per week for 16 months and never got old 😅❤️
City ones have black people working in there, and we all know how “hardworking” black people are….they fit the stereotype themselves, I’d rather have Mexicans people working there, no attitude, they just do their jobs and don’t complain
suburbs and campus yessssir
@@101stairborne6Nice generalisation.
@@101stairborne6i am a delivery driver and u are so right about black employees in all restaurants
I'm going to need that CFO to visit any Chipotle during any rush. 100 customers in 15 mins? Seamless experience between the in-store customers vs. online? What a joke lol
We stopped going to chipotle :
1. Price hikes
2. Terrible Customer Service
3. Taste has not improved but instead downgraded.
4. Terrible rewards program
They don’t care. 😂
@@aterventypityp just give it time - poor product is gonna catch up with them
Food quality has gone down A LOT!
It's hard to eat somewhere where all the employees are visibly depressed
Exactly ^ spot on. Especially the shameful rewards program. National burrito day: free delivery*! *still paying higher menu prices to get it delivered. What a freaking joke.
It's not a tiny menu, it's a normal menu, other restaurants have excessively large menus for people that take too long to decide, then they want to go secret menu, or customize the long menu items, all is excessive leading to longer prep times, lower food quality, stress of employees and customers that are not "artists"....as I say, if someone wants something so detailed...they should cook for themselves at home.
Low inventory complexity is a huge plus in retail/food. It’s incredibly difficult to manage ordering for 100s of SKUs, particularly if things expire. Their store-margins in the 20%+ profit range shows how this plays out for them!
They're good, I'll give them their props. But nothing beats a real Mexican taqueria.
Easy. Simple. Easy to understand. High quality ingredients. Lots of customization.
Really like this series WSJ!
Thank you WSJ... Good insight
Simple: Americans want fast, healthy food and there aren't much options! Americans want something in the middle in terms of "healthy". It certainly isn't the healthiest, but it's a million times better than Mcdonalds
I used to work at chipotle. Reading the comments, the workers’ story isn’t really told. Yes the food is good, and you may think it isn’t consistent but it actually is. However, Chipotle does not care about its workers. This wasn’t always true. Before it became public, the company was great. Starbucks as a public company is much better. This isn’t what the chipotle founder wanted.
Yes I commented above "chipotle needs to pay its workers better"
How about you quit or get a better job? There a huge company bro
@@deez994 well yeah of course. I said I used to work there.
Yup. That's exactly my experience/understanding of the past, too.
16 months in 3 locations..
@@deez994 that's why he said he quit. And I did too.
And why Chipotle is a CONSTANT swinging door of new employees. It's a real problem, lacking that consistency.
Definitely need to treat employee culture more seriously.
I appreciate Chipotle’s plant forward options! AND I have been asking HQ to pleaaase have the peppers (the sautéed veggies) at a location where I go because they NEVER have it during dinner service and I just never hear back from anyone. I want to support them since they have healthier options but if a Chipotle exec is reading this - please make sure all of your locations don’t “run out” of items on the menu DAILY and then charge the same amount for our meals…! 🙏
Chipolte is actually the best of the fast foods but I just make a rice/bean/cheese burrito for 1$ these days instead.
i don't mind price increased but their portions have become a joke. they're good for something fast and healthy when i'm not near home- but they're the only fast food place i don't use the app for. the app portions are even worse than the in store portions.
This is why you must order in person to actually watch as they prepare the meal and can ask for more appropriately
I’ve noticed lately that customization isn’t as good as they’re usually out of some ingredients constantly such as onions and peppers - switched to Moe’s
Chipotle quality has went downhill big time during the stock climb.
It really has. Chipotle is no longer as fresh as I remember. Particularly the meat quality
Agree 100%
Qdoba is now much better both in terms of price and quality.
Definitely due to their attitude to their workers. Their store turnover rate is ridiculous. They say they’re all about people, but they traded their culture to churn numbers.
so did the portion sizes
As a worker of chipotle in the evenings, their stock went up working us to the bone
One of my all time food favs
Who knew selling rice and beans wrapped in a tortilla with a little bit of meat would be so profitable?
This video is very impressive
Was introduced to Chipotle in 2014. Every now and then I’ll order a large burrito. I really like how they have a health calculator on their site. Stores are always clean and most staff are courteous.
It’s simple, fresh, and tasty. That’s all you need. Nothing fancy, that’s why it’s my favorite.
Chipotle is amazing!!! simple, effective, quick, and the app is great
Chipotle ❤️
It’s good but it’s super expensive!
Plus they’ve added “large” bag of chips which is the same amount of chips before, but now they charge you.
Yeah most people I know that used to get it often no longer do. Food was good and def beat out eating from traditional fast food
I think it's reasonably priced given the massive inflation we've experienced. My usual chicken bowl is $10 ish, which realistically is what I would spend at a place like Mcdonald's anyway
I could turn $10 into a 3 pound chicken bowl or steak.How's that too much?
@@everythingl0udBut the other thing is that you are paying for convenience, and you are also paying for healthy fast food (sodium is only bad if you already have high blood pressure)
@@noobcraft6225 "sodium is only bad if you already have high blood pressure" is like saying: Sugar is only bad if you already have diabetes...
Will never eat at this place, thanks bro.
Chipotle has to be one of the best food success story of this decade
No major chain/franchise has had more major food violations and outbreaks (norovirus, salmonella, etc) in history, and they accomplish that feat in a 5 year span... BRAVO!
Chipotle stock is crazy!
My only problems with Chipotle are that sometimes the servers are a little stingy with rice, beans and juice from the beans. Lastly, I can not re-establish my online account no matter how many times it's been re-set.
It's been a brilliant business since day one.
Favorite place to eat when on the go specially when there is a drive thru lane for online orders!
Whoever was cooking that steak in the first second of the video, that side is for the fajitas only
Thank you
It has always puzzled me how CMG is at close to $1500 a share. What made it so highly priced? Then I looked up the outstanding shares, which is only 27M.
looking at the price per share is stupid lol. was tesla worth 5x as much before the stock split? look at market cap
HONESTLY. their chips.. are incredible. Please do not lose of the sight of cleanliness. I am a firm believer of fresh and I cannot rave more about the chips. I mean they are made daily, they taste limey , salty and they have a trace of oil that has been used on them. I mean that is super fresh. You cant make this stuff up! Edit: their tomato salsa dip, or "pico de gallo" is preobably better than the supermarket store . It is fresh. You can actually taste the cilantro and the freshness of the tomatoes . The onions are not overtly loaded. Salt to taste and a hint of lemon ? what!
Chipotle has great food and great staff................. Its a win win............ LOVE THEM
How much they paying you to say this
@@AltiMenace actually nothing and I'm actually having Chipotle again for dinner. I'm sorry you don't like them but there's no accounting for taste
I ate Chipotle for my special education program's fundraising. We gave away Chipotle tracts to people who donated funds. You wouldn't find it anywhere in MEX (the country).🌯
Kudos to these guys for not being another unhealthy burger chain
Innovation is key
Nice ad bro
Chipotle portions consistently getting smaller and more expensive as stock price soars.
Ordering online = smaller portions.
@@serbkebab2763 every time i order online I get that harsh and sad realisation. I open the bowl and and half of the bowl is entirely empty.
It's food that makes you feel good
A bowl is now $10!! I Slacked off on buying
Been a fav eatery and company since ate there for the first time 17 yrs ago!
Great business model.
Please, come to Portugal!
My favorite food
Best tasting food out of any restaurant chain
Sadly Chipotle is not what it once was.
1. Quality of ingredients is not what it used to be.
2. Promotion offers (BOGOS etc) are not what they used to be. Boorito is a good measuring stick. The "discount" they've offered has decreased substantially more than inflation (50% decrease overall). What happened to the glory days of random BOGOs? Or Chiptopia?
3. The social media gen-z fitting in is frankly just cringey and annoying. Can you focus instead of high quality product?
4. Portion sizes are not what they used to be.
5. Price increases have outpaced inflation.
6. The online ordering invasion has caused stress for workers and as a result poor customer service experiences in-person especially.
Perhaps you are lucky enough that none of the above are happening at your location. It's only a matter of time though. Chipotle's success is primarily due to the lack of a serious competitor, but that will come soon enough.
The stores has to look at what they can make during the day. Smaller size, will keep their inventory to the next day before the truck delivery. If they do not...the doors will be closed the next day and of course, the stores will get in trouble with their inventory.
@@tiffanykahn2535 they had little to no logistic problems 10 years ago. because they werent so corporatized. company is just not the same as it used to be and mark my words it can only get worse. a competitor will spring up that does things right.
I think the CEO needs to see The comments section to make this business a lot better, there are tons of things in this comment section.
Cool
I'm not a "fast food" person but they r one of my favorite "fast food" restaurant, they app is great and when u order "extra" they actually give u EXTRAAAAAA unlike other fast food restaurants
I love Chipotle
Guess I’ll have to go check it out. Never been to chipotle.
You’re not missing out
My kids love Chipotle. Their favorite "fast food"
Please don’t bring your kids to chipotle. They always hold up the line not knowing what they want. Take them to McDonald’s.
@@Jacob-nu4nd my kids are older and well trained and very smart. Worry about your own kids
oh my god I love chipotle, chipotle is my life!
as an über, door dash, grub hub delivery driver, your restaurant is the fastest. you guys are awesome !!!
i ordered online a lot before, but recently I wanted to shed weight and looked for low-carb options because I was doing keto. There wasn't any restraunt that did it. You couldn't customize a lot without losing the traits of the meal. Then yesterday I actually ordered 3 bowls of Chicken Bowls, without Rice and Beans. I think that's one of the reasons . A lot of people were trying to do low carb options and Chipotle were the only ones that offer it. All fastfood major downside, is because, Bread, Rice, Noodles, Carbs are part of their food. But You can actually still enjoy Chipotle means without rice and beans, which is 90% of their carbs and their meals are relatively cheap online.
I always buy the chips very underrated
chipotle . I saw the stock at 900$USD right after the pandemic... I would have had to wait about 3 years to get to now levels. $2400 sad sad. Still the best tex mex food eva!
I love chipotle’s food but I stopped going for a while after a giant piece of plastic ended up in my burrito that I ordered on the app. I will likely never order on the app or get delivery ever again. When I go now I go in person and order to avoid that from happening again. I still don’t go as much as I used to because biting into that plastic was so gross and it’s harder for me to enjoy going now.
🌬️💨
Exactly. I don’t buy chopped food cause there can be foreign objects in there the low wage food preparers don’t care.
A good chipotle is really good. Way better than Wendy’s or anything like that.
Chipotle-away!
The store was clean and the employees were friendly, but my almost $12 burrito didn't taste any difference ( both good) than a cheaper taco bell burrito.
Increase that pay!
02:29 typing error here:
You missed out "Media Coverage about (Chipotle Food safety may cost it up to 7% of it's clients)" in front of the title.
There are far worse food safety situations, but the media coverage is what kills the revenue of some companies and the media silence is what let's other thrive.
Chipotle was so good back in the 2000s. Now it tastes so different and bad.
I like the Quality, Quantity in Qdoba not chipotle. Also, no extra charge if you add Guac in your chicken bowl. Not sure if others feels the same or they don't have Qdoba in their state. I live in GA
Their guacamole must be premade....Chipotle one is freshly made! That is why it's extra 😮🎉
Julie Jargon - what a name.
I still wouldn't eat at Chipotle once you've met someone who worked there
Who still eats here? ALL of the chipotles near me are filthy and lack consistency. The portion sizes have gotten smaller while the price has gone up. When I crave a baby sized burrito, I just make it at home now.
nice
Love chipotle but new one by my house grill looks nastyyyyy 70% of the times i go….. like when they add another round of chicken steak they don’t clean off all the grease,burnt stuff. Problem with chipotle is some locations are really consistent while others appear to be learning as they go
I’ve been shocked to see the rise of chipotle despite the food not really being that good. I vastly prefer Qdoba, but personal preferences aside, it’s surprising to see how popular they are with a relatively plain menu.
there is no qdoba in california
@@bora--bora cannot google i see.
@@EIiteTactics My bad. When I googled it I see there are only 10 Qdoba stores in california as compared to 461 Chipotle stores.
For me personally it comes down to Chipotle having all natural ingredients, while Qdoba is more like your typical fast food chain -it might be tasty but not in a good way. Also Chipotle's menu is simple yet very customizable so you can get exactly what you want
I prefer Moes Southwest
10/10 restaurante
They have record profits because when I order online I buy guac but when I get home there’s no guac
Hmmm....M'kay. Pricing and Hygiene must be priority! Profit may rise, however, beware on the elements mentioned!
They didn’t discuss the decision to make guac extra!!
Quality has gone down a lot at Chipotle in the past few years.
They need to train their burrito rollers better, half come out so messy.
Well it’s gonna go down because quality control is gone and their food is trash now.
Chipotle order ahead is inconsistent. I make them look me in the eyes before giving a half scoop of rice 😂
… but seriously though
If they keep switching to pick up and drive through then they are no longer any different from a fast food restaurant since no one see the food anymore.
But I think the marketing is knowing what are"memories" remember the kitchen look like will probably stick with customers. People who are ordering online are probably ordering because of how they remember seeing the open design kitchen
"we have invested a lot of money into chipotle" - WSJ
Chipotles one spoon per item policy had us going to McDonald’s or Taco Bell, not to mention recent out breaks in chipotles industry, this is just bad for bussiness😌
Chipotle is my fav fast foods restaurant but expensive !that's why stock climb
Cool idea but I‘m a college student and can’t afford it
I thought the reporter looked like the company owner, maybe siblings haha.
Do economics of prime hydration aka Congo brands
I worked there & a lot of the food is contaminated. So for whoever eats there, that must suck lol
ابغى اسوي فكرة مطعم باكل سعودي بس نفس نظام شيبوتلي
الاكل العربي والسعودي تحديداً ما يناسبه الا طريقة تشيبوتلي فالمطاعم السريعة
Starbucks chock point is not the customers…it’s extremely painfully slow moving barista station(s)
the portions are too small, and the prices too high. chipotle near me is on its way to bankruptcy. don't charge me $13 for a burrito and serve me only half of it.