Chipotle Mexican Grill is a popular chain of restaurants functioning in the United States, United Kingdom, France, Germany, and Canada that specializes in tacos and mission burritos. Steve Ells founded the establishment in 1993 in Denver, Colorado with an investment of $85,000 and now the restaurant operates in more than 2000 locations generating revenue in millions. Let us have a brief look at the net worth of Chipotle in 2018 and its progress over the years.
Steve Ells was working as a line cook for Jeremiah Tower in San Francisco at the Stars. He was fascinated by the popularity of burritos and taquerias in the mission district and decided to open a restaurant in Denver specializing in burritos and tacos. He borrowed $85,000 from his family and friends and opened the Chipotle Mexican Grill at 1644 East Evans Avenue, Denver, Colorado on July 13, 1993. Ells intended to sell 107 burritos a day to see the profit, but to his surprise, the restaurant sold 1000 burritos a day within a month which made him open the second store in 1995. The restaurant stepped outside Colorado for the first time in 1998 and had a branch in Kansas City, Missouri.
McDonald’s invested in the company in 1998, and by 2001 McDonald’s became the largest investor in Chipotle which helped in its quick expansion with 500 outlets by 2005. McDonald’s divested from Chipotle in 2006 with $1.5 billion investing $360 million citing that it wanted to concentrate on its own chain of restaurants. In 2008, Chipotle stepped outside of the US for the first time with a branch in Toronto.
Chipotle hired chef Nate Appleman in 2010 and in 2016 co-CEO Monty Morgan resigned from his post making Steve the sole CEO once again. In 2017 December, the company announced that it had signed a 15-year lease deal and in February 2018, Brian Niccol replaced Ells as the CEO while the latter will still retain his Chairman position.
Awards & Achievements
In 2007, Steve Ells was honored with the CEO of the year award by ColoradoBiz magazine. The company went public on January 26, 2006, and its stocks rose to 100% which was the best US-IPO and the second-best IPO for a restaurant. CMG was ranked 8th in the 2009 list of fastest-growing restaurant chains and moved to the 3rd position in 2010. It was named the best Mexican fast-food chain in 2011 by the Consumer Reports.
Net Worth & Earnings
The company had assets worth $2.026 billion in 2016 with total equity of $1.4 billion. It generated revenue of $3.9 billion in 2016 and its net income for the year was $22.94 million which was very much lower than its net income of $475.6 million in 2015. The net income rose to $176.25 million in 2017 and the first and second quarter net income of the company in 2018 was $59 million and $47 million respectively. The estimated net worth of the Chipotle is $12 billion.
The company’s headquarters was changed to Newport Beach, California in May 2018 and right it operates in more than 2,250 locations with over 65,000 employees.