Chipotle Mexican Grill’s “food with integrity” message is hitting home with consumers, who helped drive up the company’s revenue’s 20% and its net income 31% during second quarter 2010. The popular “fast casual” burrito joint opened 25 new stores during the quarter, while winning over new customers at its established restaurants as evidenced by its same-store 2Q sales growth of nearly 9%.
As TheStreet reported July 27, Chipotle’s return on equity, a key measure of profitability for investors, expanded from 15% to 20% during the second quarter, beating the industry average of 10% and the S&P 500 average of 12%.
NBJ Bottom Line
As Nutrition Business Journal reports in our 2010 Nutrition Industry Overview issue, Chipotle is the big burrito in the healthy fast food market and is helping to inspire other food service companies to embrace high-quality, sustainable ingredients. Chipotle—which now operates 1,001 locations and rang up more than $1.5 billion in sales in 2009—sells more naturally raised meat and poultry than any other restaurant in the United States.
NBJ’s 2010 Overview issue discusses how suppliers can best take advantage of the opportunities opening up in the food service industry and how fast food restaurants can develop a natural, organic or functional brand that consumers won’t cast off as unaffordable or unconvincing. Our 2010 Healthy Foods Report provides a detailed overview of the overall $143 billion U.S. healthy foods market, which includes natural, organic, functional and lesser-evil offerings.
Related NBJ links:
2010 Healthy Foods Report
Chipotle, Naked Pizza and Others Usher In New Era for Fast Food
2010 Nutrition Industry Overview Web Seminar