Chipotle will rework cost structure

Chipotle will rework cost structure
Tags: Fresh Mex, Legal Issues, Marketing, Operations Management
April 30, 2006

MarketWatch: Chipotle Mexican Grill, for eight years under the auspices and guiding arches of McDonald's Corp., is bracing itself for life alone. Oak Brook, Ill.-based McDonald's said it is cutting the apron strings of its ownership interest in Chipotle by the end of the year -- much sooner than investors had expected -- because it wants to focus all of its resources on itself.

That bodes well for McDonald's. But for Chipotle, which has grown from a regionally based chain of 18 stores when McDonald's swept in 1998 to nearly 500 today, it could mean a stack of new and higher costs on everything from beef to beverages.