Allen

Name

Shyonte

Practice Set Week $1$ over Pages $1-23$ of the Chipotle $202310-$K Report $-$ Released February $2024$

Please do your own work and do not share your work with others. Please read the $10-K$ and answer the following questions $-$ thanks.

$($Two Points$)$ Financial analysis begins with an assessment of the environment within which the company operates. The first assessment should look for factors in the greater social, legal, regulatory, political, and demographic environment which influences all members of society. List and discuss the three most important areas mentioned in the first portion of the $10K$ that you believe will influence Chipotle's ability to operate and grow profitably in the future?

$($Three Points$)$ After looking at the general environment, a second assessment should be conducted on the specific strategy or strategies the company is using to differentiate it product or operate efficiently to earn a higher$-$than$-$normal return on invested capital or ROIC. Each of these strategies must be performed or implemented in an exceptional manner, relative to competitors, to earn a higher ROIC. Please pick and comment on two or the five strategies $($on page four of the $10K)$ that you believe Chipotle is performing better than competitors and pick one that you believe Chipotle is just average or will have a tough time surpassing competition. For each of your three attributes provide evidence supporting your opinion.

Does Chipotle franchise its name and processes? Just yes or no will do$.$

How many Chipotle restaurants are represented by organized labor?

Are Chipotle's points of distinction $($or attributes upon which it differentiates itself$)$ defendable against competitive forces or are they susceptible? Please explain in detail.

List and explain two threats that worry Chipotle's management in relation to technology or its digital business? Why are these even more important in Chipotle's future than in the past?

Chipotle grows its sales, by raising prices, selling more units, and by opening new restaurants? What impediments may make this more difficult in the future?