Chipotle Mexican Grill INC Food With Integrity


Question: “What would you suggest the company’s options are and what do you recommend they do?”

Problem Statement

As the case states, Chipotle Mexican Grill Inc. has been competing quite efficiently in the market where it has been able to attain a lot of customers and market appreciation because it has been offering quality food, good taste by being sustainable through the mission statement of the company which is “Food with Integrity”.

Along with this, the company has basically placed itself as a differentiator where it uses both commitment and the quality of food as major factors that have isolated the competition for the company.

However in recent times with the raw material cost increasing quite rapidly, the co-CEO in 2012 had been approached by a hedge fund investor for shorting the stock of company. Therefore, the co-CEO needs to decide on the most efficient method of overcoming the current situation of the market.


Based on the current situation of the company and to overcome the issue of increased prices of raw material and other food items, the first and foremost recommendation for the company shall be to expand itself in the market and increase its customer base. As for now, Chipotle has been operating in the local market United States, United Kingdom, Germany, France and Canada.

The overall results as being sustainable food company has paid profitable returns for the company therefore, the co-CEO needs to expand the business in other parts of the world where the raw material cost shall be low and as the labor cost will also be low. This will allow the company to maintain the standards and also earn profitable return in the market.

The international markets that can be catered by Chipotle to sustain in the market with its mission statement shall be India and China. The labor cost in these parts of the world will be low and even the operating cost and raw material cost shall also be low. Based on the above stated fact, the idea of international expansion shall be a beneficial one and this will help the management to sustain the brand image and profitability in a reasonable manner.

In addition to this, to overcome the losses and to negate the idea of hedge fund investment, Chipotle Mexican Grill needs to open IPO and offer shares to the stakeholders. By doing so, the company shall be able to generate the investment and the capital that can be used for the expansion of the company in other markets globally. Therefore, the issue of hedge fund investment can be reduced and overcome with IPO offering for the company.

In the end, it can be said that Chipotle Mexican Grill needs to analyze the market and make decisions based on the above recommended solution. This way the threat of being bankrupt and acquiring hedge fund investment shall be handled in a more effective and rather organized manner.


Jiang, G. F., Holburn, G. L., & Beamish, P. W. (2016). The spatial structure of foreign subsidiaries and MNE expansion strategy. Journal of World Business, 51(3), 438-450.

Ram, Subramanian, (2013). Chipotle Mexican Grill, Inc.: Food with Integrity. Ivey Publishing, pp. 01-14.

Please place the order on the website to get your own firstly done case solution result.

Related Samples

Big D Company Case Study Solution

Wal Mart Case Study Solution

Refugees Case Study Solution

Need Help