Author Topic: CMG - Chipotle  (Read 70461 times)

johnny

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Re: CMG - Chipotle
« Reply #240 on: March 05, 2017, 11:52:59 PM »
The international expansion bull case is substantially the same today as it was three years ago, which I think should weigh heavily on how much credibility we assign to it.


TorontoRaptorsFan

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Re: CMG - Chipotle
« Reply #241 on: March 06, 2017, 08:18:32 AM »
I was told that there were another 7 locations opening up here in Ontario.

A new location opened up near my house and the manager there said he had to go on a hiring spree since they severely underestimated the foot traffic they would receive. Needless to say lunchtime there has long lineups so I only go there at night.



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johnny

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Re: CMG - Chipotle
« Reply #242 on: March 06, 2017, 12:24:43 PM »
I think Ontario has the same problem/tailwind London has, which is that there are more than enough home-sick and uncreative Americans to saturate the first few stores, especially when they first open. That said, if it was going to succeed anywhere, I'd expect Canada to work out, since there's such general cultural overlap with the USA.

But beyond that, I don't see how they achieve anything like the 2014 dreams of international store-count without seriously compromising their position on menu simplicity and ingredient sourcing. All the prior successes of brand internationalization have involved shameless and grotesque local market optimization. Will Chipotle begin cutting their guacamole with sesame oil and vinegaring their rice to make it in Japan? Are they going to build the organic, fair-trade pinto bean supply chain in Malaysia from scratch?

TorontoRaptorsFan

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Re: CMG - Chipotle
« Reply #243 on: March 06, 2017, 12:40:13 PM »
Lots of people visiting the U.S. have eaten at Chipotle. I'm sure many of them had a wonderful experience there.

There's plenty of time for Chipotle to expand their operations. They have plenty of name brand recognition that if they felt it was necessary to expand overseas they would target prestigious locations ie- a city's flagship shopping mall.

In Canada they're currently targeting Ontario and B.C. They have a long way to go to saturate the market here with locations. They're doing an excellent job of picking key locations in the GTA area. I'm curious to see how they proceed with Pizzeria Locale. They are sitting on a gold mine with that franchise.

I'm curious to see what Ackman has in mind with Chipotle. I wouldn't be surprised if Chipotle was buying back more shares.

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Vish_ram

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Re: CMG - Chipotle
« Reply #244 on: March 06, 2017, 04:20:28 PM »
I'm seeing some subtle changes.

The places that i go to aren't crowded anymore. They removed fresh lemons. The bell pepper/onion is no longer fresh, looks old stuff. They removed knife & spoon, just only fork.

TorontoRaptorsFan

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Re: CMG - Chipotle
« Reply #245 on: April 21, 2017, 07:55:03 AM »
Looks like things have done well this year. I'm up well over 20% and climbing.
Looks like a price increase is starting to get implemented in some restaurants.

http://www.barrons.com/articles/one-sign-chipotle-isnt-in-damage-control-mode-anymore-1492636031

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glorysk87

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Re: CMG - Chipotle
« Reply #246 on: April 21, 2017, 08:00:28 AM »
i've been going to my local chipotle once a month or so since the crisis just to keep tabs on traffic. during and shortly after the crisis, there would maybe be 2 or 3 people in there for lunch when i visited.

in the last month or so it has been absolutely BOOMING with people. at least 30 people in there at any time i go. and this isn't a huge unit.

just some anecdata for you all.

BRK7

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Re: CMG - Chipotle
« Reply #247 on: April 21, 2017, 09:15:18 AM »
i've been going to my local chipotle once a month or so since the crisis just to keep tabs on traffic. during and shortly after the crisis, there would maybe be 2 or 3 people in there for lunch when i visited.

in the last month or so it has been absolutely BOOMING with people. at least 30 people in there at any time i go. and this isn't a huge unit.

just some anecdata for you all.

I started using the online ordering recently.  My initial online order was mainly done to satisfy my curiosity, and I really didnít think Iíd order online again.  But it sure was nice to arrive at the restaurant, bypass about 20 people waiting in line to order, and pick up my order immediately at the cash register (having already paid online).  Literally took seconds.  Going forward, I suspect I will use online ordering more often than not.

Anyway, it will be interesting to learn on next Tuesday afternoon what been happening with comps and margins.

TorontoRaptorsFan

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Re: CMG - Chipotle
« Reply #248 on: April 21, 2017, 10:27:14 AM »
http://fortune.com/2017/02/20/chipotle-digital-orders-investment/

Curt Garner was hired as the Chief Information Officer a couple of years ago. The same position he previously held at Starbucks.

The location near my house frequently runs out of items because they have busloads of church goers or kids playing in hockey tournaments showing up en masse and ordering everything and anything.
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AzCactus

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Re: CMG - Chipotle
« Reply #249 on: July 17, 2017, 08:33:09 AM »
Is anyone thinking about this again at these prices?  I might be harnessing my inner Buffett but you have a good company going through a rough patch.  This company probably has the ability to raise prices over time (they don't claim to be the cheapest) and now have the CEO who founded the company way back when.