Chipotle Mexican Grill, Inc. and its subsidiaries (‘Chipotle’) own and operate Chipotle Mexican Grill restaurants, which feature a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads.
The company strives to cultivate a better world by serving responsibly sourced, classically cooked, real food with wholesome ingredients and without artificial colors, flavors or preservatives. The company is passionate about providing a great guest experience...
Chipotle Mexican Grill, Inc. and its subsidiaries (‘Chipotle’) own and operate Chipotle Mexican Grill restaurants, which feature a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads.
The company strives to cultivate a better world by serving responsibly sourced, classically cooked, real food with wholesome ingredients and without artificial colors, flavors or preservatives. The company is passionate about providing a great guest experience and making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose.
The company owns and operates various Chipotle restaurants throughout the United States (U.S.) and international Chipotle restaurants. Additionally, the company has some international licensed restaurants. The company manages its U.S. operations based on ten regions and aggregates its operations to one reportable segment. The company’s revenue is derived from sales by its restaurants.
Business Strategy
The key elements of the company’s strategy include running successful restaurants with a people accountable culture that provides great Food with Integrity while delivering exceptional in-restaurant and digital experiences; amplifying technology and innovation to drive growth and productivity at the company's restaurants, support centers, and in the company's supply chain; making the brand visible, relevant, and loved to acquire new guests and improve overall guest engagement; and expanding access and convenience by accelerating new restaurant openings in North America and internationally.
Digital Business
The company's digital platform continues to be a strategic driver of its growth. Digital sales represent food and beverage revenue for company-owned restaurants generated through the Chipotle website, Chipotle app, or third-party delivery aggregators, and include revenue deferrals associated with Chipotle Rewards. Digital sales represented 35.1% of food and beverage revenue in 2024. The company has made digital ordering convenient with continued enhancements to its app and by building more Chipotlanes, which is its drive-through format for guest pick-up of digital orders. The company is also investing in technology and tools to modernize the back of house of its restaurants and to improve the team member experience.
Government Regulation
The company's business is subject to extensive federal, state, local, and international laws and regulations, including those relating to preparation, sale, and labeling of food, including regulations of the Food and Drug Administration, which oversees the safety of the entire food system and covers inspections and mandatory food recalls, menu labeling, and nutritional content; privacy and data security (including regulations governing the protection of personal information, advertising and marketing, access by children, biometrics, surveillance, artificial intelligence, health-related information, and financial information), such as California Privacy Rights Act and CCPA in California, and privacy-related legislation in a growing number of other states, as well as international laws, such as GDPR in the European Union and Personal Information Protection and Electronic Documents Act in Canada; and public accommodations and safety conditions, including the Americans with Disabilities Act and similar state laws that give civil rights protections to individuals with disabilities in the context of employment, public accommodations, online resources, and other areas.
Seasonality
Seasonal factors cause the company’s profitability to fluctuate from quarter to quarter. Historically, the company’s average daily restaurant sales and net income are lower in the first and fourth quarters (year ended December 31, 2024) due, in part, to the holiday season and because fewer people eat out during periods of inclement weather (the winter months) than during periods of mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on the company’s results. For example, restaurants located near colleges and universities generally do more business during the academic year.
Intellectual Property and Trademarks
‘Chipotle,’ ‘Chipotle Mexican Grill,’ ‘Food with Integrity,’ ‘Responsibly Raised,’ ‘Chipotle Rewards,’ and a number of other marks and related designs and logos are the U.S. registered trademarks of Chipotle. The company has filed trademark applications for a number of additional marks in the U.S. as well. In addition to its U.S. registrations, the company has registered trademarks for ‘Chipotle’ and a number of other marks in Canada, the European Union, the Middle East and various other countries; and has filed trademark applications for ‘Chipotle Mexican Grill,’ ‘Chipotle’ and a number of other marks in additional countries.
History
Chipotle Mexican Grill, Inc. was founded in 1993. The company was incorporated in 1998.