Chipotle Could Try A Breakfast Menu But It Might Be A Cooked Strategy

by Trefis Team
+0.83%
Upside
721
Market
727
Trefis
CMG
Chipotle
Rate   |   votes   |   Share

Chipotle Mexican Grill (NYSE:CMG) has started selling coffee in some of its restaurants, a sign that the restaurant chain might eventually move into the breakfast segment. [1] Furthermore, the restaurant chain is also testing a breakfast menu at its outlet in the Baltimore-Washington International Airport. Chipotle does not offer breakfast presently, but the management admitted last year that the company could foray into this segment in if sales start to slow.

The move highlights how the restaurant chains move to newer dayparts as they struggle to generate the optimal sales growth. Dunkin’ Donut, for example, has been trying to boost its afternoon sales for quite some time now since the Canton based restaurant chain gets most of its sales in the morning.

See full analysis for Chipotle Mexican Grill

Although breakfast represents a sizable opportunity for Chipotle, it will not be easy for the chain to grab a market share in this segment. Not everyone who has entered this segment in the past has been successful. For example, Wendy’s introduced a number of breakfast sandwiches but could not lure enough customers.

Not So Easy

To get the customers to change their morning routines could be a big challenge. A lot of morning diners are office goers who are usually time constrained and do not want to waste time trying new options.

Currently the breakfast segment is dominated by McDonald’s which gets as much as 25% of its sales from the daypart. [2] It has a strong coffee line up through its McCafe brand, has added oatmeal in recent years and introduced a new 250-calorie Egg White Delight this year for the more health conscious customers. Moreover, the fast food giant has a ubiquitous presence making it easier for the diners to access its stores and form a ‘habit’ of having breakfast at McDonald’s.

Chipotle also faces competition from Taco Bell which started tweaking its menu last year to take on Chipotle directly. Last year, it introduced the Cantina Bell menu created with the help of celebrity chef Lorena Garcia, which was a pretty big success. Similarly, after the successful introduction of the Doritos Locos Tacos line-up in 2012, Taco Bell added Fiery Doritos Locos Tacos recently.

Taco Bell itself is testing the waffle tacos which will see the restaurant chain eventually expand its breakfast menu to about 6,000 restaurants by 2014. Items such as crunchy breakfast wrap, bite-size Cinnabon-branded cinnamon rolls, oatmeal and coffee will be offered as part of their breakfast lineup.

Similarly, Subway and Burger King have also upped their breakfast game in  recent years. It certainly won’t be an easy ride for Chipotle from here on.

We have a $394 price estimate for Chipotle, which is about 5% lower than the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

Notes:
  1. Report: Chipotle tests coffee, September 19, 2013, nrn.com []
  2. Egg McMuffin for Dinner? Restaurant Marketers Wake Up to $50B Breakfast Opportunity, May 13, 2013, adage.com []
Rate   |   votes   |   Share

Comments

Name (Required)
Email (Required, but never displayed)
Chipotle Logo
  • commented 3 weeks ago
  • tags: SBUX DNKN CMG MCD
  • babyliss pro,http://www.babyliss.us.org/

    basketball shoes,http://www.basketballshoes.com.co/

    beats by dre outlet,http://www.beatsbydrdre.co.com/

    beats by dre,http://www.beatsbydre.com.co/

    monster beats outlet,http://www.beats-by-dre.com.co/

    beats headphones,http://www.beatsheadphones.in.net/

    bottega,http://www.bottega.us/

    burberry outlet online,http://www.burberry-handbags.us.org/

    burberry,http://www.burberry--outlet.in.net/

    burberry outlet,http://www.burberryoutlet.me.uk/

    ralph lauren outlet,http://www.ralphlaurenpolo.in.net/

    ray-ban,http://www.ray-ban-outlet.us.com/

    ray ban outlet,http://www.raybans.us.org/

    ray ban,http://www.rayban-sunglasses.org.uk/

    ray ban sunglasses outlet,http://www.rayban-sunglasses.us.org/

    ray ban sunglasses,http://www.ray-ban-sunglasses-outlet.in.net/

    cheap ray ban,http://www.raybanwayfarer.in.net/

    knockoff handbags,http://www.replicahandbags.com.co/

    omega watches,http://www.replica-watches.us.com/

    jordan release dates,http://www.retro-jordans.com/

    replica watches,http://www.rolex-watches.me.uk/

    roshe run,http://www.rosherun.org.uk/

    roshe runs,http://www.rosheruns.us/

    ferragamo shoes,http://www.salvatoreferragamo.in.net/

    indoor soccer shoes,http://www.soccer-shoes.org/

    easton bats,http://www.softball-bats.us/

    supra shoes,http://www.suprashoes.in.net/

    swarovski jewelry,http://www.swarovskicrystal.com.co/

    swarovski,http://www.swarovskijewelry.com.co/

    swarovski,http://www.swarovski-uk.org.uk/

    north face jackets,http://www.the-northface.com.co/

    northface,http://www.thenorthface.in.net/

    north face,http://www.thenorth-face.org.uk/

    the north face,http://www.thenorthface.us.org/

    tory burch sandals,http://www.tory-burch-outlet.in.net/

    tory burch sandals,http://www.tory-burchoutlet.us.com/

    true religion jeans,http://www.true-religion.com.co/

    true religion,http://www.truereligionjeans.net.co/

    true religion jeans outlet,http://www.truereligion-outlet.com.co/

    ugg,http://www.ugg-australia.in.net/

    ugg australia,http://www.uggboots.net.co/

    uggs,http://www.uggbootsclearance.com.co/

    ugg boots clearance,http://www.uggsonsale.com.co/

    burberry outlet,http://burberry.outletnow.org/

    christian louboutin outlet,http://christianlouboutin.outlet-shoes.net/

    tory burch sandals,http://toryburch.salesandals.net/

    abercrombie and fitch,http://www.abercrombieand-fitch.com.co/

    abercrombie and fitch,http://www.abercrombiefitch.us.com/

    abercrombie,http://www.abercrombie-kids.us.com/

    nike huarache,http://www.air-huarache.co.uk/

    air jordan,http://www.airjordans.us/

    air jordan shoes,http://www.airjordanshoes2015.com/

    nike air max 2015,http://www.airmax-2015.org/

    air max,http://www.airmax-90.org/

    the north face,http://www.thenorthfacejackets.in.net/

    thomas sabo,http://www.thomas-sabo.me.uk/

    tiffany jewelry,http://www.tiffanyandco.net.co/

    tiffany co,http://www.tiffanyjewelry.us.org/

    timberland shoes,http://www.timberlandboots-outlet.in.net/

    timberland outlet,http://www.timberlandshoes.com.co/

    tommy hilfiger coupons,http://www.tommyhilfiger.net.co/

    tommy hilfiger,http://www.tommy-hilfigeroutlet.com/

    toms shoes,http://www.toms-shoes-outlet.net/

    tom's shoes,http://www.toms--outlet.in.net/

    toms shoes outlet,http://www.toms-shoes.com.co/

    burberry factory,http://www.burberryoutlet.club/

    burberry,http://www.burberryoutlet-online.in.net/

    cheap calvin kleins,http://www.calvinklein.co.com/

    celine bags,http://www.celinebags.org/

    chanel bags,http://www.chanelhandbags.net.in/

    softball bats,http://www.cheap-baseballbats.net/

    christian louboutin outlet,http://www.christianlouboutinshoes.ar.com/

    baseball jerseys,http://www.cheap-jerseys.us.org/

    air jordan shoes,http://www.cheap-jordans.net/

    michael kors handbags clearance,http://www.cheapmichaelkors.us.org/

    nike outlet,http://www.cheap-nikeshoes.net/

    oakley sunglasses cheap,http://www.cheapoakley.us.org/

    oakley outlet,http://www.cheapoakleysunglasses.ar.com/

    oakley sunglasses,http://www.cheap-oakleysunglasses.in.net/

    ray bans,http://www.cheaprayban.com.co/

    shoes outlet,http://www.cheapshoes.com.co/

    ugg boots,http://www.cheap-uggboots.in.net/

    flat iron,http://www.chiflatiron.net.co/

    christian louboutin shoes,http://www.christian--louboutin.in.net/

    louboutin,http://www.christianlouboutin.org.uk/

    christian louboutin outlet,http://www.christianlouboutinshoes.jp.net/

    coachoutlet.com,http://www.coachfactory-outlet.co.com/

    coach factory outlet,http://www.coachfactory-outlet-online.in.net/

    coach outlet online usa,http://www.coach-handbags.com.co/

    coach outlet online,http://www.coachoutlet-online.com.co/

    coach store outlet online,http://www.coachoutletstore.net.co/

    coach outlet online,http://www.coachoutletstore-online.com.co/

    chanel bags,http://www.coco-chanelbags.com.co/

    converse sneakers,http://www.converse.net.co/

    burberry handbags,http://www.designerhandbagsoutlet.com.co/

    eyeglasses stores,http://www.eyeglassesonline.us.org/

    eyeglasses frames,http://www.eyeglassframes.us.org/

    ralph lauren clothes,http://www.fashion-clothing.us.org/

    ferragamo shoes,http://www.ferragamo.com.co/

    salvatore ferragamo,http://www.ferragamoshoes.net/

    ghd,http://www.ghdhairstraightener.com.co/

    gucci outlet,http://www.gucci-uk.me.uk/

    gucci outlet,http://www.guccihandbags.net.co/

    gucci sale,http://www.gucci-outletsale.in.net/

    gucci belts,http://www.gucci-outlet.biz/

    gucci shoes uk,http://www.guccishoes.in.net/

    gucci handbags,http://www.guccishoes.us.org/

    hermes birkin,http://www.hermesbags.club/

    hermes,http://www.hermesbirkin.biz/

    hermes belt,http://www.hermesoutlet.top/

    hollisterco,http://www.hollister.us.org/

    hollister coupons,http://www.hollisterclothing-store.in.net/

    insanity workout calendar,http://www.insanityworkout.net.co/

    phone cases,http://www.iphone-cases.us/

    jimmy choo,http://www.jimmychoo.net.co/

    air jordan retro,http://www.jordanretro.org/

    jordan retro,http://www.jordan-shoes.com.co/

    juicy couture outlet,http://www.juicycouture.com.co/

    juicy couture handbags,http://www.juicycoutureoutlet.net.co/

    kate spade handbags,http://www.kate-spade.com.co/

    kate spade,http://www.katespade-outlet.com.co/

    kate spade,http://www.kate-spade.in.net/

    long champ,http://www.longchamp.us.org/

    longchamp handbags,http://www.longchamp.com.co/

    red bottom shoes,http://www.louboutin.jp.net/

    louis vuitton,http://www.louis-vuittoncanada.ca/

    louis vuitton outlet online,http://www.louisvuitton.jp.net/

    louis vuitton uk,http://www.louis--vuitton.org.uk/

    louis vuitton outlet,http://www.louisvuitton.so/

    louis vuitton outlet online,http://www.louisvuittonas.com/

    louis vuitton outlet,http://www.louisvuitton-outlet.com.co/

    louis vuitton handbags,http://www.louisvuitton-outlets.us/

    marc jacobs bags sale,http://www.marcjacobsonsale.com/

    mcm bags,http://www.mcmbags.in.net/

    mcm handbags,http://www.mcmhandbags.com.co/

    michael kors outlet store,http://www.michaelkors.so/

    michael kors outlet online,http://www.michael--kors.us.com/

    michael kors outlet,http://www.michaelkorsbags.us.org/

    michael kors uk,http://www.michaelkorshandbags.org.uk/

    michael kors,http://www.michael-kors-handbags.us.com/

    michael kors outlet online sale,http://www.michaelkorsoutlet.ar.com/

    michael kors purses,http://www.michael-kors-outlet.us.org/

    michael kors handbags,http://www.michaelkorsoutlet-online.ar.com/

    michael kors,http://www.michael-kors-outlet-online.us.org/

    ,http://www.michaelkorsoutletonline-sale.us.com/

    michael kors uk,http://www.michaelkors-uk.org.uk/

    mont blanc pens,http://www.montblanc-pens.in.net/

    new balance,http://www.newbalance-outlet.org/

    nike air max,http://www.nike-air-max.us/

    nike factory,http://www.nikefactory.org/

    nike free,http://www.nikefree5.net/

    nike free run,http://www.nikefree-run.net/

    nike free,http://www.nikefree-run.org.uk/

    air jordans,http://www.jordanrelease-dates.net/

    nike mercurial,http://www.nikemercurial.in.net/

    nike roshe,http://www.nikerosherun.us/

    nike outlet store,http://www.nikestore.us/

    north face,http://www.northface.us.org/

    north face clearance,http://www.northfaceoutlet.com.co/

    oakley outlet,http://www.oakleyoutlet.us.org/

    oakley sunglasses,http://www.oakleysunglasses.gr.com/

    oakley sunglasses cheap,http://www.oakleysunglassescheap.in.net/

    oakley sunglasses,http://www.oakley-sunglasses.top/

    omega watches,http://www.omegawatches.us.com/

    pandora charms,http://www.pandora-charms.org.uk/

    pandora jewelry,http://www.pandorajewelry.top/

    polo outlet,http://www.polo-outlets.com.co/

    prada outlet,http://www.pradahandbags.net.co/

    prada handbags,http://www.pradahandbags.com.co/

    prada shoes for men,http://www.pradashoes.com.co/

    polo ralph lauren outlet,http://www.ralph-lauren.org.uk/

    ralph lauren outlet,http://www.ralphlaurenoutlet.us.com/

    ralph lauren uk,http://www.ralph-lauren-outlet.org.uk/

    ralph lauren polos,http://www.ralphlaurenoutletonline.com.co/

    ralph lauren outlet online,http://www.ralphlaurenoutletonline.in.net/

    uggs on sale,http://www.uggsoutlet.com.co/

    coach outlet store,http://www.uptocoachoutlet.com/

    vans outlet,http://www.vansshoes.us/

    wedding dress,http://www.weddingdressesuk.org.uk/

    lululemon outlet,http://www.yogapants.com.co/

    cheap ugg boots,http://www.ugg-boots.us.org/

    ralph lauren outlet online,http://www.poloralphlaurenoutlet.net.co/

    burberry handbags,http://www.burberryoutletonline.ar.com/

    toms outlet,http://www.toms-outlet.net.co/

    michael kors outlet online,http://www.michaelkors.in.net/

    christian louboutin shoes,http://www.christianlouboutinoutlet.net.co/

    tory burch handbags,http://www.toryburchsale.com.co/

    prada outlet,http://www.pradaoutlet.com.co/

    longchamp outlet,http://www.longchamp-handbags.in.net/

    longchamp,http://www.longchampoutlet.com.co/

    chanel bags,http://www.chanel-bags.com.co/

    true religion jeans outlet,http://www.truereligion-outlet.us.org/

    abercrombie fitch,http://www.abercrombie-and-fitch.us.com/

    hollister co,http://www.hollisterclothing.in.net/

    new balance store,http://www.newbalance-shoes.org/

    converse sneakers,http://www.converses-shoes.net/

    lululemon outlet,http://www.lululemonoutlet.com.co/

    cheap jerseys,http://www.nfl-jersey.in.net/

    nfl jerseys,http://www.cheapjerseys.us.org/

    rolex watches,http://www.rolex-watches.us.com/

    omega watches,http://www.rolexwatchesforsale.us.com/

    p90x,http://www.p90xworkout.in.net/

    giuseppe zanotti,http://www.giuseppezanotti.com.co/

    mac cosmetics,http://www.maccosmetics.net.co/

    instyler,http://www.instyler.in.net/

    mizuno,http://www.mizunorunning.net/

    purses and handbags,http://www.handbagsoutlet.com.co/

    hilfiger outlet,http://www.hilfigeroutlet.in.net/

    ed hardy clothing,http://www.edhardy.in.net/

    levis jeans,http://www.levisjeans.com.co/

    bcbg max azria,http://www.bcbgdresses.net/

    bebe clothing,http://www.bebeclothing.net/

    harrods london,http://www.harrods-london.co.uk/

    gucci handbags,http://www.guccishoes.com.co/

    ralph lauren outlet,http://www.ralphlaurenoutletonline.us.org/

    yoga pants,http://www.lululemoncanada.ca/

    lululemon canada,http://www.yoga-pants.ca/

    nike canada,http://www.nike-shoes-canada.ca/

    pandora,http://www.pandora-charms-canada.ca/

    watches canada,http://www.rolex-watches-canada.ca/

    michael kors canada,http://www.michael-kors-canada-outlet.ca/

    adidas shoes,http://www.adidas--canada.ca/

    tiffany,http://www.tiffanyandco-canada.ca/

    abercrombie kids,http://www.hollistercanada.ca/

    abercrombie,http://www.abercrombie-and-fitch.ca/

    oakley sunglasses,http://www.oakley-sunglasses-canada.ca/

    wedding dresses,http://www.wedding--dresses.ca/

    swarovski canada,http://www.swarovskicanada.ca/

    tommy hilfiger,http://www.tommy-hilfiger-canada.ca/

    new balance,http://www.new-balance.ca/

    burberry,http://www.burberrycanada.ca/

    north face,http://www.the-north-face.ca/

    polo ralph,http://www.ralph-lauren.ca/

    rayban outlet,http://www.ray--ban.ca/

    christian louboutin,http://www.christian-louboutin-shoes.ca/

    nike air max,http://www.nike-air-max.ca/

    bcbg max azria,http://www.bcbg-max-azria.ca/

    uggs canada,http://www.uggscanada.ca/