Chipotle vs. McDonald’s – Chipotle puts the “fast” in fast-casual, McDonald’s flounders

A November 2014 press releases revealed an erosion of McDonald's' results across most of its divisions, a stark contrast with one of its former companies, Chipotle. Chipotle has outperformed not only McDonald's in recent years, but also the economy. This case study analyzes the two company's financial performances and business practices, as well as the fast casual restaurant sector.

Scope

Provides an analysis and assessment of McDonald's' and Chipotle's financial results, comparing how the two have performed in recent years.

Looks at the differing business practices of McDonald's and Chipotle and how they impact their profit margins.

Provides insight into the difference between the quick service and fast casual restaurant sectors.

Reasons to buy

How is McDonald's performing in the wake of competition from the fast casual restaurant sector?

How has Chipotle achieved its success?

How is Chipotle consolidating its success?

What are fast casual restaurants?

Companies mentioned

None

Table of Contents

OVERVIEW

Catalyst

Summary

CHIPOTLE'S RISE AND THE MCDONALD'S EFFECT

Chipotle's humble beginnings

The McDonald's and Chipotle relationship

McDonald's cashes in

WHAT IS CHIPOTLE AND WHY CAN FAST FOOD CHAINS NOT IMITATE IT?

The difference between fast casual and fast food

The Chipotle aesthetic, and the McDonald's imitation

The healthy fast food dilemma

FAST GROWTH FOR CHIPOTLE, MCDONALD'S BEING LEFT BEHIND?

Financials reveal McDonald's' and Chipotle's places in the business life cycle

Chipotle's growth not restricted to physical locations

McDonald's' profit margins reign supreme, Chipotle's continue to grow

Is Chipotle disenfranchised with franchising?

CHIPOTLE FOCUSES ON SPEED, MCDONALD'S STRIVES TO REMAIN RELEVANT

Chipotle strives to become the fastest of the fast

McDonald's continues to struggle

CONCLUSIONS

Chipotle's performance suggests that McDonald's made a major mistake

APPENDIX

Sources

Further Reading

Ask the analyst

About MarketLine

Disclaimer

List of Tables

NA

List of Figures

NA

    Pricing

Discounts available for multiple purchases.

reportstore@marketline.com
+44 20 7947 2960

Saved reports