Chipotle Franchise

Is Chipotle A Good Investment?

Chipotle could well be the next Starbucks in the making! Investors of Starbucks have had a tough time of late. Their, stock price has come nearly one-third from its high last November of $40. Nevertheless, the Starbucks' investor groups are still enjoying an 8-figure pay packet, even after the substantial drop in their finances. Starbucks has been sharply focusing on one single product line - coffee and burritos - with appropriate variants namely raspberry, mocha frap and tacos, user-specific ordering according to a huge, impressive menu, all this, added to the rich addictive taste of their fare!

Chipotle's present business model is praiseworthy as well. The Chipotle costs are optimized, much like the Subway products, except that they are a lot simpler. The products are made fresh, then and there, so that the customer can really get to relish the superb taste and aroma.

The greatest advantage of the Chipotle franchise business is that the amount of investment a franchisee has to make to start the business is quite reasonable. Further, there are various price packages available for those interested in investing on a Chipotle franchise. You can choose the Chipotle franchise investment package that best suits your budget and lifestyle. The cost of a new Chipotle franchise comes to a mere 50% of the franchise investment made for its closest and biggest competitor. Further, the break-even period for Chipotle franchises is only 18 months, which is impressive when compared to normal industry standards. Besides, Chipotle handles all the franchisee's other expenses, like buying the restaurant, setting it up and taking on a few payments as well.

In 1998, McDonalds first decided to place a tiny stake in the Chipotle Mexican Grill [CMG], a restaurant chain based just out of Denver. This was the first stride for Chipotle. Ever since the first stake holding, McDonalds has gradually increased its stakeholding to nearly 90%, and Chipotle's growth has been better than ever. This has also reflected on all the other stakeholders as well, who have immensely benefited from investing in Chipotle.

In case you are wondering whether it would be wise to invest all that money in a Chipotle franchise, understand the huge advantages you stand to get from the business. Chipotle is one of the most popular Mexican fast food joints in the United States. Americans who have sampled Chipotle's fare really rave about the chain. Especially, the Chipotle Mexican Grill has over 450 restaurants spread across the 22 states. This means that you will get tremendous returns from your Chipotle franchise business, which will more than cover the initial investment.

Chipotle Mexican Grill had its first public offering in 2006. Till the end of last year, the majority of its shares were owned by McDonalds. Its 'B' shares have ten times voting power as that of A shares but otherwise identical, but in 2006, its 'B' shares were distributed to McDonalds to add to the float. Currently, the class 'A' shares is trading around $64, while the B shares are trading around $60. Chipotle has not revealed its same-store sales, except to state that it has seen more than double-digit growth for each of the past eight years.