Tacos, Burritos, Guacamole and Salsa are supposed to be street foods, cheap, unhealthy and easily obtained, a working man’s lunch in the southwestern US if there was ever one, and a nice quick meal for the rest of us if nothing else is around and we’re hungry before or after a movie.
So how do those foods propel a company to become a $3 billion a year business with nearly 50,000 employees in over 5 countries, and can that business, and could you turn the aptly named Chipotle into your next successful binary options investment?
Steve Ellis, the founder of Chipotle was a culinary student whose first place of employment after finishing school was in San Francisco, while there, he noticed the extreme popularity of street vendors and taco trucks selling quick, cheap and easy Mexican food on the streets of San Francisco, with this idea in mind, he borrowed just over $85,000 from his father (which we sincerely hope he’s repaid 10 fold by now) and opened the first ever Chipotle location in Denver, Colorado.
It quickly turned out Ellis was right on every single count imaginable, quite probably exceeding his own estimates of success – he needed to sell slightly over 100 burritos or tacos per day to achieve modest profitability, but after a month in business Chipotle was having trouble keeping up with the demand of over 1,000 units per day, within 18 months Chipotle had opened 2 additional locations in Denver, by 1998 when Chipotle expanded beyond Colorado to Kansas City Missouri, McDonald’s became interested in investing in it, at the time, the company had 16 locations, but 7 years later in 2005 it was already up to 500 and still growing.
Near the end of 2006 McDonald’s decided to divest its holdings in many companies that did not comprise its core, Chipotle was among those assets that were divested, but their situation was not greatly affected by that decision, mostly due to their extremely successful IPO a few months earlier, during which Chipotle shares doubled their worth during the first day of trading, the funds gained from that success were used to fund further growth and expansion to other areas, including Canada, UK and France.
Possibly the biggest difference between Chipotle and various other fast food chains rests with the fact that unlike most other chains, Chipotle does NOT franchise its stores to various owners, the company itself takes care of finding new locations, training new employees, and oversees startup and management of each location.
In recent years, with dietary concerns becoming an ever growing part of the public debate Chipotle has taken great measures to turn its various dishes healthier and add healthier options to its menu, most meat is naturally raised and other ingredients are fully organic and without any hormone additives, making Chipotle one of the healthier fast food chains today.
Continued expansion is really the key to Chipotle’s future growth, but its continued commitment to having healthier options are also aiding its public view as a better to place to eat outside, a far cry from its humble (and not really healthy) beginnings.
So keep your eye out for income and revenue reports, expansion is also vital to the future of the restaurant chain, but if all goes well, you can easily grab another burrito and smile as your latest Chipotle binary options investment finishes in the money.