Chipotle Grill - Coming Soon To A Streetcorner Near You

[DanCole42]

Err a parent: McDonald's sold their entire stake in Chipotle several years ago.

I can see how there would be a certain level of creative dissonance...

[Arcturus]

Err a parent:

Fantastic.

I love Chipotle, and have for a long time. The value can't be beat, and it tastes fantastic, always. All of the salsas, sour cream, guacamole, cheese, pinto beans, and the slow-cooked pork. A beautiful thing indeed.

[zoramargolis]

In the Charlottesville area, the Chipotles get their pork from Joel Saletan.

[mbucher]

I can see how there would be a certain level of creative dissonance...

Not exactly correct McDonald took Chipotle public and sold.a relatively small portion of their stake to the public markets. Chipotle's distribution system is all McDonalds, and their executives are hand picked by McDonalds. You'll start to see changes, like less food cooked onsite at each location, more reheat and serve, kids portions, and less relaince on high food cost proteins.. Look closely, it's already started... For the record I happen to love Chipotle. But change is a comin!

[tentimesodds]

Not exactly correct McDonald took Chipotle public and sold.a relatively small portion of their stake to the public markets. Chipotle's distribution system is all McDonalds, and their executives are hand picked by McDonalds. You'll start to see changes, like less food cooked onsite at each location, more reheat and serve, kids portions, and less relaince on high food cost proteins.. Look closely, it's already started... For the record I happen to love Chipotle. But change is a comin!

McDonalds spun off Chipotle and divested completely in 2006. Not owned by McDonalds at all...check your facts.

[hungry prof]

A link-a-dink from July 25, 2006 on McDonald's selling off its stake in Chipotle. Fair to say that the sale of Chipotle had little to do with "creative dissonance" and everything to do with maximizing McDonald's profits (which, incidentally, is not a terrible thing for a for-profit company to do).

[KMango]

A link-a-dink from July 25, 2006 on McDonald's selling off its stake in Chipotle. Fair to say that the sale of Chipotle had little to do with "creative dissonance" and everything to do with maximizing McDonald's profits (which, incidentally, is not a terrible thing for a for-profit company to do).

Indeed. And dovetailing that with a socially conscious agenda, even better.

Profits - Conscience = Mess

[mbucher]

McDonalds spun off Chipotle and divested completely in 2006. Not owned by McDonalds at all...check your facts.

gullable, gullable gullable.......... everything done with chipoltle has been done with marketing in mind. Chipotle was getting negative PR , and angry McDonclad franchisees, because they clained micky D's was losing its core focus, with the huge McDonalds stake, so, McDonalds took it public , announcing a "divestiture."OF CLASS A SHARES". in subsequent years McDonalds held 80% of the voting "CLASS B" shares, Still holds 64% of the voting shares under seperate investment vehicles,even after the IPO. today Chipotle looks and acts like an idependant company. One trip to the R&D facility, one trip to Martin Brower (distribution) and one look at their purchasing, or except for steve ellis, executive resumes and each one of them is a hand picked McDoanaldser, oooops is that purchasing happening out of Oak Brook ,IL, yup, wonder why? Hey and why is their deliveries coming off a truck with McDonalds food on it, wait, is that a McDonalds shortening box I see in Chipotle?........... LOOK CLOSELY!

[dcs]

gullable, gullable gullable.......... everything done with chipoltle has been done with marketing in mind. Chipotle was getting negative PR , and angry McDonclad franchisees, because they clained micky D's was losing its core focus, with the huge McDonalds stake, so, McDonalds took it public , announcing a "divestiture."OF CLASS A SHARES". in subsequent years McDonalds held 80% of the voting "CLASS B" shares, Still holds 64% of the voting shares under seperate investment vehicles,even after the IPO. today Chipotle looks and acts like an idependant company. One trip to the R&D facility, one trip to Martin Brower (distribution) and one look at their purchasing, or except for steve ellis, executive resumes and each one of them is a hand picked McDoanaldser, oooops is that purchasing happening out of Oak Brook ,IL, yup, wonder why? Hey and why is their deliveries coming off a truck with McDonalds food on it, wait, is that a McDonalds shortening box I see in Chipotle?........... LOOK CLOSELY!

This is a quote from the CHIPOTLE MEXICAN GRILL, INC. Form 10-K filed with the SEC on February 19, 2009:

Our predecessor corporation, World Foods, Inc., was founded in Colorado in 1993. McDonald's Corporation made an equity investment in us in February 1998, becoming our majority shareholder, and simultaneous with McDonald's initial investment in us, World Foods, Inc. merged with Chipotle Mexican Grill, Inc., a newly-formed Delaware corporation. We completed our initial public offering of class A common stock in January 2006. McDonald's sold a portion of its interest in us in the initial public offering, sold an additional portion of its interest in us in a secondary offering of class A common stock in May 2006, and disposed of its remaining interest in us in an exchange offer to its shareholders that was completed in October 2006. As a result of the completion of the McDonald's exchange offer, we now have two publicly-traded classes of common stock, class A and class B, and McDonald's no longer owns any interest in us.

Are you stating that this passage is not accurate or is misleading?

[mbucher]

focus on the word "mCdonalds" that is true, there are no owners of stock under the name McDonalds, now keep going and look up holders of more then 300 shares, note any similarity? mailing address? oak brook ,IL ? keep going magnum, you're getting closer....

[genericeric]

Obviously not as conclusive as an SEC filing, but the truck that pulls up to the Chipotle across the street from my apartment to deliver that sweet sweet love in a soft tortilla shell is emblazoned with the golden arches and a giant picture of a big mac and fries.

Having said that, McDonalds may have sold their stake and only be contracted for their supply chain at this point... who knows.

[dcs]

For whom am I looking?

MSN Money shows the following with 5% or greater ownership in Class A:

Fidelity Management & Research

Fidelity Contrafund

Capital World Investors

Barclays Global Investors, N.A.

Marsico Capital Management, L.L.C.

Hussman Econometrics Advisors, Inc.

Hussman Strategic Growth Fund

and Class B:

T. Rowe Price Associates, Inc.

Capital World Investors

T. Rowe Price Mid-Cap Growth Fund

American Funds Insurance Series Growth Fund

William Blair & Company, L.L.C.

The 5% or greater Class A shareholders own 68% of the Class A stock.

The 5% or greater Class B Shareholders own 57.9% of the Class B stock.

It does not look like anyone but these funds owns enough stock to be able to control anything.

The 10-K does indicate that Chipotle continues to share the same third party distribution network as McDonalds.

[hungry prof]

DCS just preempted me, but I was about to post the following:

Well, hate to break it to you, but I actually took the time (that I don't have) to look up their annual report from last year. 300 shares of Chipotle stock would actually be a pretty small holding. Instead, their annual report lists any person or institution holding more than 5% of their stock. Not a one has a mailing address of Oak Brook, IL. The largest holding of Class B shares is held by T. Rowe Price. See p. 67 of their annual report, available here.

[mbucher]

DCS just preempted me, but I was about to post the following:

Well, hate to break it to you, but I actually took the time (that I don't have) to look up their annual report from last year. 300 shares of Chipotle stock would actually be a pretty small holding. Instead, their annual report lists any person or institution holding more than 5% of their stock. Not a one has a mailing address of Oak Brook, IL. The largest holding of Class B shares is held by T. Rowe Price. See p. 67 of their annual report, available here.

If it were easy sleuth work, e everyone would have cracked it.but to you're getting warmer. Hint 2 of the funds listed have HUGE mcdonalds connections and who sits in the board meetings for them? And of course the voting percentages. (Another hint, its different then ownership) Oh, and if you all think for a minute McDonlads would lease out its supply chain logistics, not a chance. Its one of their main and prized competitive advantages. How about this, let's revisit this thread in 9 months. And we'll see if anythings changed at Chipotle. Wonder what the Happy Meals will be called? any suggestions ?

[dcs]

Wonder what the Happy Meals will be called? any suggestions ?

That's easy: Taconino and Burrinino for the boys and Taconina and Burrinina for the girls.

[JPW]

Dag nabbit! Don't stop now, this was just getting exciting. I was going to go microwave some popcorn.

Best tale of corporate scheming that I've read since Kurt Eichenwald's takedown of ADM.

[dcs]

From the Chipotle web site:

Class A common stock has one vote per share and Class B common stock has 10 votes per share, except that for purposes of approving a merger or consolidation, a sale of all or substantially all of Chipotle's property or a dissolution of Chipotle, shares of Class B common stock have only one vote per share.

Even with this increase in voting power, I am not sure how a less than 5% Class B shareholder has any effective control when all of the rest of the Class B have similar leverage vis a vis the Class A shareholders.

I have no doubt that current McDonalds employees are current CMG and CMG.B shareholders, as this is not uncommon in corporate divestiture situations. It is a conspiracy theory I cannot buy, however, to imply that these folks are acting as agents of McDonalds in a secret campaign to maintain control over Chipotle. That is a legal exposure for both McDonalds and Chipotle that would dwarf whatever dubious economic benefit that would accrue from such a manipulation. That said, I am heading on over to Lyndon LaRouche's web site to see if he has anything to say on this topic.

[Anna Phor]

I don't know squat about Chipotle shareholders, but I do know that the company just came to an agreement with the Coalition of Immokalee Workers in Florida to pay more for tomatoes. The workers will now get 82 cents for each 32 pound bucket of tomatoes, up from the 50 cents they were previously getting.

[cheezepowder]

Chipotle is testing a vegan fake meat option called "garden blend." The only place it's available nationwide right now is at the DC Dupont Circle location (I'm curious why they picked DC to test it). I tried a garden blend fajita burrito (my usual order is the steak fajita burrito). I liked it for what it was. It's like fake chicken and reminded me of the Morningstar Farms fake chicken strips. Unlike the regular vegetarian burrito, guacamole's not included.

[KMango]

Chipotle is testing a vegan fake meat option called "garden blend." The only place it's available nationwide right now is at the DC Dupont Circle location (I'm curious why they picked DC to test it). I tried a garden blend fajita burrito (my usual order is the steak fajita burrito). I liked it for what it was. It's like fake chicken and reminded me of the Morningstar Farms fake chicken strips. Unlike the regular vegetarian burrito, guacamole's not included.

Were you able to tell if it was soy-based, mycoprotein, seitan, other?

[cheezepowder]

Below is a photo we took of the sign describing it.

This blog entry says they asked Chipotle for the ingredients and they are:

Ingredients: Water, Soy Protein, Canadian Wheat Protein (also called vital wheat gluten), Fresh Carrots, Natural Flavors (from plant sources), Pea Protein, Carrot Fiber, Organic Beet Root Fiber, Organic Evaporated Cane Juice, Yeast Extract, and Sea Salt.

From looking around the internet, it seems to be from the company Gardein.

[Mark Slater]

Chipotle is testing a vegan fake meat option called "garden blend." The only place it's available nationwide right now is at the DC Dupont Circle location (I'm curious why they picked DC to test it). I tried a garden blend fajita burrito (my usual order is the steak fajita burrito). I liked it for what it was. It's like fake chicken and reminded me of the Morningstar Farms fake chicken strips. Unlike the regular vegetarian burrito, guacamole's not included.

The boys at South Park are on top of this.

[KMango]

Below is a photo we took of the sign describing it.

This blog entry says they asked Chipotle for the ingredients and they are:

From looking around the internet, it seems to be from the company Gardein.

Good intel, thanks for the low-down. I'm always curious what's boppin' around in the marketplace of meat alternatives.

[dcs]

It's like fake chicken and reminded me of the Morningstar Farms fake chicken strips.

Why would vegans want to eat a meat facsimile? If you are opposed to eating your pets, would you want a sandwich with imitation dog meat in it?

[KMango]

Why would vegans want to eat a meat facsimile? If you are opposed to eating your pets, would you want a sandwich with imitation dog meat in it?

If you *had* to give a rationale, what would you say?

[sheldman]

Why would vegans want to eat a meat facsimile? If you are opposed to eating your pets, would you want a sandwich with imitation dog meat in it?

On the assumption that this question is not trolling, here's an answer from a mostly-vegetarian (noting that, because vegans and vegetarians are as unique as other people, everyone's particular reasons will vary).

Some meat tastes good to me. I loved it and ate it as often as the next guy, before developing a set of beliefs/information that led to me eat less of it. My reasons for not eating (much of) it have nothing to do with how it tastes, and have not led me to revulsion at the taste. Also, meat in many forms is a handy delivery vehicle for protein. So when I eat a good fake meat product (Field Roast sausages, Quorn chicken patties, etc., and some fake meat strips in a burrito sound like a nice idea) I get the handy protein delivery system plus an imperfect but ok facsimile of the taste/texture that I like. And I am fully aware that I am not eating a dog or even a chicken, so I am not bothered by the association with meat.

All of the above sentences are also true of my son, who is quite strict about his own choice to be a vegetarian.

Not too complicated really.

[dcs]

On the assumption that this question is not trolling, here's an answer from a mostly-vegetarian (noting that, because vegans and vegetarians are as unique as other people, everyone's particular reasons will vary).

I'll cop to being somewhat intentionally provocative, but I did intend it as a legitimate question. It seems to me that vegans, more so than vegetarians, have an ethical/moral issue with eating animal derived products. As such, vegetable based meat "recreations" seem somewhat offensive to me in that context. You can add texture and flavorings and not have it resemble a chicken tender. It seems an unnecessary reminder of a practice they disdain.

This, spoken from a true omnivore.

[Barbara]

I'll echo what Sheldman said. Heart disease runs in both sides of my family and I started getting concerned about being disabled and having Dame Edna become my caretaker. Meat substitutes are a great help for those of us who did not grow up eating a vegetarian diet and can't quite figure out what to cook for dinner. I found a vegan "Italian Sausage" recipe that I cook up and freeze and pull out from time to time. No, it doesn't exactly duplicate the real thing but it isn't awful, either.

The industrial method of raising cattle and chicken are a real problem for me, as well. I stopped buying eggs at the supermarket a while ago and just get them from the farmers' markets. Yes, they are more expensive but are still cheap. They are just so superior in every way that I wouldn't dream of using the factory-produced ones for anything. And, I have used the bison sausages from Cibola when I have had company for dinner. The merguez is particularly good, although leaner than most sausages which is something I appreciate.

Wendy Reiger claims that the veggie burger at BGR is the best ever. I'll have to try one soon.

Last year I ate a total of three steaks--all of them at Ray's the Classics (!)--one on my birthday, one on Dame Edna's birthday and one where we just said the hell with it.

[xdcx]

I'll cop to being somewhat intentionally provocative, but I did intend it as a legitimate question. It seems to me that vegans, more so than vegetarians, have an ethical/moral issue with eating animal derived products. As such, vegetable based meat "recreations" seem somewhat offensive to me in that context. You can add texture and flavorings and not have it resemble a chicken tender. It seems an unnecessary reminder of a practice they disdain.

This, spoken from a true omnivore.

it's not the taste or the texture that vegans have an issue with, so why do you find it offense that some would want something that replicates meat but doesn't require the death of an animal?

[deangold]

I can see both sides of the argument. If one is a meat eater giving up meat for health reasons then it seems totally consistent to want something healthy that satisfies the craving for meat.

But if one is vegan for philosophical reasons, then I think there is something inconsistent with the meat substiturtes. In order for the meat substitutes to be "meat like" someone in the production process probably has tasted meat and is working to introduce the proper consistency, flavors etc. Now it is possible that the food scientist making the product is a former meat eater working strictly from memory but I somehow doubt that is the case. I recall that the folk who marketed the "fake meats" at the natural foods expo being somewhat split between being vegans or vegetarian themselves and not.

Hving asid all that, however, I also think that a lot of the "fake meats" are highly processed foods and as manufactured as anything in a conventional grocery store and I also think that some of them are probably not too good for you. On the other hand, things like bean curd skin or wheat gluten that are minimally processes as they are derived from real food are probably quite healthy and are quite tasty.

Of course selling dead pig for the last 5 years has made some of my recollections of my days in the "health food" industry a little hazy.

[stickmoon]

I'll cop to being somewhat intentionally provocative, but I did intend it as a legitimate question. It seems to me that vegans, more so than vegetarians, have an ethical/moral issue with eating animal derived products. As such, vegetable based meat "recreations" seem somewhat offensive to me in that context. You can add texture and flavorings and not have it resemble a chicken tender. It seems an unnecessary reminder of a practice they disdain.

This, spoken from a true omnivore.

Why are you offended by people who eat plant-based proteins that have a similar texture or flavor to animal-based proteins? I have no problem when you eat a meatball, but you have a problem when I eat a vegan "meatball" with my pasta and sauce? I'm confused.

[dcs]

Why are you offended by people who eat plant-based proteins that have a similar texture or flavor to animal-based proteins? I have no problem when you eat a meatball, but you have a problem when I eat a vegan "meatball" with my pasta and sauce? I'm confused.

I perhaps did not express myself clearly, and as I sent this thread careening off topic, I'll give it one more short go and let it rest.

I was suggesting that fashioning vegetables into products to look like meat may be offensive to vegans, who have good and valid reasons for not wanting to eat meat.

I guess maybe I was wrong.

I am off to the store to buy my kids some candy cigarettes.

[LowellR]

New location in the center of Falls Church - Where the old Duron paint store was, by the Original Pancake House. Supposedly opening in June

[MsDiPesto]

New location in the center of Falls Church - Where the old Duron paint store was, by the Original Pancake House. Supposedly opening in June

Glad they're in a closer location to my place than 7 corners, but the parking there is atrocious.

[LowellR]

Glad they're in a closer location to my place than 7 corners, but the parking there is atrocious.

I agree; in fact, in my view it would have to improve considerably to be atrocious. I believe the closest descrrition of the current situation was offered in the Screwtop Wine Bar thread -

full scale Pentagon City Costco Parking lot.

[mame11]

After the brouhaha over the company's less than forthright employment practices, I vowed not to frequent Chipolte anymore. After my meal tonight I wish I had come home and cooked. I found not one but two foreign objects in my meal. The first was a dried black bean which I am lucky I noticed before I chomped down on it. A dried black bean, I can overlook. Then I found something else, probably a piece of plastic.

What really irks me is that I noticed each person behind the line at the Woodley Park Chipotle was some form of immigrant from somewhere other than South or Central America. Couldn't the company have put their money where their mouth is and helped their former workers become legal?

[goodeats]

Couldn't the company have put their money where their mouth is and helped their former workers become legal?

Based on my basic knowledge of immigration law, the answer is there is either no immigration visa type to fit minimum wage workers in or it is really hard to obtain one for.

[ktmoomau]

My big gripe is that they charge extra for guacamole on tacos. I don't eat cheese or sour cream on my tacos, but now and again as a substitute of decadence like guacamole, but it really annoys me to get charged extra.

[thetrain]

After the brouhaha over the company's less than forthright employment practices, I vowed not to frequent Chipolte anymore.

Couldn't the company have put their money where their mouth is and helped their former workers become legal?

Chipotle filled out I-9 forms, but the information didn't check out, so its not like they didn't even attempt to hire legal workers. A survey in 2008 found 20% of cooks and 28% of dishwashers nation-wide were illegal, so Chipotle is hardly the only restaurant that employees illegals. Not saying its right to employ illegals, but Chipolte was paying a legal wage to workers and attempted to verify their legal status, and that is better than other restaurants.

Goodeats is right, short of getting immigration law changed, there is really little Chipotle could do to help those workers gain legal status.

My big gripe is that they charge extra for guacamole on tacos. I don't eat cheese or sour cream on my tacos, but now and again as a substitute of decadence like guacamole, but it really annoys me to get charged extra.

Free on Vegetarian Tacos or Burritos...but don't order pinto beans if you are actually a vegetarian. Also you can order tacos ala carte, if you are only hungry for 2 instead of 3.

[ktmoomau]

Free on Vegetarian Tacos or Burritos...but don't order pinto beans if you are actually a vegetarian. Also you can order tacos ala carte, if you are only hungry for 2 instead of 3.

I didn't know you could order two, that is good to know! Sometimes I want two and some chips. Yeah, I like the meat, the dairy is the problem. I also didn't know the beans had meat in them, but figures. It's like eating vegetables down south.

[DanielK]

My big gripe is that they charge extra for guacamole on tacos. I don't eat cheese or sour cream on my tacos, but now and again as a substitute of decadence like guacamole, but it really annoys me to get charged extra.

Cheese and sour cream are very low cost items. Guacamole is possibly the highest cost item per ounce that they have - I might even venture more than the meat.

[ktmoomau]

Free on Vegetarian Tacos or Burritos...but don't order pinto beans if you are actually a vegetarian. Also you can order tacos ala carte, if you are only hungry for 2 instead of 3.

Maybe I will get one vegetarian and one meat that would solve the problem! I also have found I have to eat them in house because the crunchy tacos disintegrate quickly with all the juice.

[lperry]

Chipotle is going vegan out west. 

[DonRocks]

Chipotle is going vegan out west. 

I'd be in for this if they get their outrageous sodium content down.

[chefgunshow]

And there's always this. . . 

[DonRocks]

And there's always this.

Let me get this straight: this guy scarfed down *four* Chipotle burritos, and then immediately ran a 5:57 mile?

Enjoy your youth, my friend. I think it's safe to say there will come a day when you're no longer able to do this.

Pretty studly, and seems borderline impossible without a major-league hurl at some point.

I don't mean to be graphic, but have you ever wondered what the aftermath of Sonia The Black Widow's exploits are the next morning? Not something to be measured in inches, nor feet, but *yards*.

[cheezepowder]

Chipotle is going vegan out west. 

I actually tried the tofu option recently when I was out west (well, I'll admit, I got half tofu, half steak (my usual filling)).  The tofu was in little pieces and had a crumbly texture.  It was ok.  If I'm looking for a vegetarian Chipotle option, I prefer the faux chicken they had (still have?) at the Chipotle in Dupont Circle.

The all tofu burrito is the same price as the vegetarian burrito (the one with black beans), but guacamole is not included in the price of the tofu burrito.  (Guacamole is included in the price of the vegetarian burrito).

(And what's not vegan about their regular vegetarian burrito if you don't get the cheese and sour cream?)

[Barbara]

And there's always this. . . 

I believe that is irrefutable proof of the existence of naturally-occurring testosterone poisoning.

[jasonc]

I probably had Chipotle 30 times this summer.

Chipotle first popped up on my radar when one opened in a shopping center across from the Chevy Chase Bank in Rosslyn, Virginia, where I was a bank teller in 2003. Later that year I bought a bunch of burritos on my way home from work for my brother and I to eat while we watched DVDs of Fellowship of the Ring and Two Towers right before seeing a midnight showing of Return of the King. I guess I was 22 at the time. My brother was still in high school.

Cut to May 2013.

My work has a policy of paying for our meals if we stay past nine. Early in the summer, during my rotation in litigation, I usually stayed until eleven or midnight. Hence, I went to Chipotle a lot.

Those were days when I was still getting used to the new job. I was still getting used to a lot of new things. I was tender.

The walk over to Chipotle at around seven or eight always marked the beginning of the night. Many of the lawyers had gone home by that point, and I could actually start to focus on work.  I'd walk the two blocks over to Front Street, letting my mind clear and wander in a way it just couldn't during the day.  Then I'd enter the friendly and familiar confines of  Chipotle.  (I'm aware of how absurd this sounds)

I got to know most of the staff there, and was often comped chips and guacamole or a drink.  I tried to explain that I wasn't really paying for it, and it was really just a transfer of wealth from Chipotle to my law firm, but it didn't really stick.  I had a month-long flirtation with one of the employees.

My order was almost always a burrito, chips and guacamole and a small drink (coke zero with lots of lemon).

Listen, Chipotle isn't fine dining by any stretch.  And the salt levels are definitely too high.  But everything is freshly made, the staff is  friendly, and it's enough food to get you through the night.  I'd usually eat the chips and guac early in the evening and eat the burrito around nine or ten.

I had some truly incredible meals this summer: Mas (la grillade), Wallflower, Pizza Libretto, and on and on.  But Chipotle was the taste of the summer for me.  Sometime during this seemingly endless stream of burritos the summer wore on, I learned a new trade, met new friends, kissed a girl who thinks I'm wonderful, and finally I surprised myself.  Chipotle was a constant during this.

The thing I love about Lord of the Rings is how, as the journey goes on, you lose track of how things began and when you get to the end you feel like you've changed along the characters.

[lperry]

An excellent ad from Chipotle.