McDonald’s and Chipotle are not just two of the biggest fast-food chains in America; they also happen to be direct competitors. Both offer fast food options, serve chicken as an entree and specialize in offering healthier menu items. Despite these similarities, neither chain directly owns the other; however, McDonald’s does own a stake in Chipotle through third-party holdings. If you frequent either of these restaurants on a semi-regular basis, you’ll probably know that both companies have had their fair share of ups and downs recently. McDonald’s has had to deal with PR nightmares around its unhealthy food as well as a range of different scandals. At the same time, Chipotle has struggled to recover from an E Coli outbreak that left many customers feeling unsafe about eating there again anytime soon. So how do these two so similar yet very different fast food chains relate? Let’s look at if Mcdonald’s owns Chipotle and what that means for both brands moving forward.
Does McDonald’s Own Chipotle?
No, McDonald’s does not own Chipotle. Chipotle is a fast-casual restaurant chain that specializes in Mexican-style food. It is owned by Chipotle Mexican Grill, Inc., which is headquartered in Denver, Colorado. In 2011, McDonald’s spun off its stake in Chipotle through a divestment process known as stock selection. Chipotle has more than 2,400 restaurants worldwide as of February 2019. The company was founded in 1993 by Steve Ells in Denver, Colorado. In 1998, it was incorporated as ‘Chipotle Catering Company Inc’. In October 2016, the company began trading on the New York Stock Exchange as ‘CMG’, under the ticker symbol ‘CMG’.
Why Doesn’t McDonald’s Own Chipotle?
1. McDonald’s Has a Stake in Chipotle
McDonald’s is one of the biggest fast-food chains in America, with more than 35,000 locations around the world. In fact, they have more locations than any other restaurant chain in America. McDonald’s isn’t just a fast food chain, however; they have also expanded their menu to offer items that are higher quality and healthier. For example, they offer salads as well as sandwiches that are made with fresh ingredients and real chicken or beef. All of their burgers contain only 100% pure beef and their chicken is free of antibiotics
2. McDonald’s and Chipotle Offer Similar Items
Both restaurants specialize in offering fast food options to customers who want to eat something quick on the go. Both restaurants also serve chicken as an entree at most locations. In addition to these similarities, McDonald’s offers salads and sandwiches that are made from fresh ingredients while Chipotle offers burritos as well as tacos. So while both restaurants serve similar items and have a similar goal, they certainly aren’t direct competitors.
3. McDonald’s and Chipotle Offer Different Items
McDonald’s serves a vast range of different food items at their locations, but Chipotle offers burritos as the primary entree at most locations. Both restaurants also offer salads as an alternative to burgers or tacos but McDonald’s does not offer salads as an entree option. As well, McDonald’s offers higher quality food than Chipotle; for example, all of their beef is 100% free of antibiotics and all of their chicken is free of antibiotics, hormones, and artificial preservatives.
4. McDonald’s Has Had a Recent Setback with Healthier Options
Chipotle has struggled to get its business back on track after an E Coli outbreak that left many customers feeling unsafe about eating there again anytime soon. Both also serve a range of other options including burgers, fries, desserts, and drinks.
5. McDonald’s Has Had Issues With Food Quality
In recent years McDonald’s has had to deal with a number of different food scandals that have left many customers questioning the quality of their food. One of the most prominent scandals involved the discovery that some of their chicken was contaminated with E Coli bacteria. Many customers were concerned about eating at McDonald’s again after this scandal broke out and it hurt sales for months afterward. In addition to this, they made headlines in 2011 when they were caught using beef from cows who were treated with antibiotics as well as being fed animal byproducts such as feces and manure. This caused a huge uproar amongst consumers who felt that McDonald’s was not only promoting unhealthy food but also doing so in an unethical way.
How Is McDonald’s Connected To Chipotle?
1. McDonald’s and Chipotle Offer Different Items
As mentioned above, McDonald’s offers salads and sandwiches that are made with real chicken and fresh ingredients while Chipotle offers burritos, tacos, and takes. Both of these options are great for snacking or as an entree option but they are also very different from each other. The main difference between the two is that Chipotle has a higher quality of food at a lower cost than McDonald’s. In addition to this, Chipotle also has more vegetarian options than McDonald’s which is another great reason to consider going to Chipotle instead of McDonald’s if you’re looking for something healthy to eat.
2. Chipotle Has Improved Over Time While McDonald’s Has Not
While both companies have been around for over 50 years, in recent years both have had their fair share of ups and downs in terms of popularity among customers as well as negative press surrounding them.Tlaxcala-style tacos.
3. McDonald’s Has a Stake in Chipotle
McDonald’s has a stake in Chipotle through third-party holdings. This means that McDonald’s does not own the company; instead, they are a shareholder of Chipotle through an investment with private equity firm 3G Capital, which also owns Burger King and Tim Hortons. 3G Capital is an investment firm that has helped make many successful investments over the past few years. They have been known to make large purchases of companies that are struggling to stay afloat and then turn them around so that they can become profitable again. In addition to investing in Chipotle, 3G Capital also owns Burger King and Tim Hortons.
4. McDonald’s and Chipotle are Direct Competitors
These two fast-food chains compete directly with each other for the same customers, so it makes sense that they would both be direct competitors. In fact, it is estimated that each restaurant serves about the same number of customers in their respective local markets, with Chipotle being the clear winner. This means that just like pizza and tacos, if you want to eat at a restaurant that offers chicken as an entree or offers bottomless cups of soda, then McDonald’s and Chipotle are your best options for fast food restaurants in America.
5. There is a Stake in Being a Bigger Player in Fast Food
McDonald’s has been around since 1955 and has more than 35,000 locations around the world; this shows just how big they are as a brand name and company worldwide. Now let’s look at another company that has been around since 1970 and is only now beginning tater tots.
6. McDonald’s and Chipotle Offer Healthy Options
Chipotle has tried to offer healthier options in their restaurants as well as promote a healthier lifestyle for customers. In addition to offering salads and burritos, they also serve chicken that is free of antibiotics. At the same time, McDonald’s has also tried to be more health-conscious by offering salads and sandwiches made from fresh ingredients and only 100% pure beef.
Why Doesn’t McDonald’s Just Own Chipotle Already?
1. McDonald’s and Chipotle Both Offer Shakes
McDonald’s and Chipotle are also both known for offering shakes at their locations. The McDonald’s shake is made from milk, ice cream, and chocolate syrup while the Chipotle shake is made from milk, ice cream, and caramel sauce. Both shakes are available in a variety of flavors such as vanilla, chocolate, or strawberry. Both companies also serve these shakes in a cup or bowl that can be taken to-go if desired by the customer.
2. McDonald’s and Chipotle Have Similar Marketing Strategies
McDonald’s has been making headlines recently for all the wrong reasons; however, it wouldn’t be fair to say that they don’t have a good PR strategy going on. For example, they have hired new spokespeople such as Justin Timberlake who are interested in helping promote healthy eating habits among children in America.
3. McDonald’s and Chipotle Offer Healthy Options
At the same time, both restaurants offer items that are healthier options for customers who want to eat something but don’t want to go through the trouble of cooking or making their own meal. For example, Chipotle offers burritos that are made with fresh ingredients as well as a salad bar where customers can make their own salad. In contrast, McDonald’s offers salads as well as sandwiches that contain only 100% pure beef while providing customers with a healthy choice at the same time.
4. McDonald’s and Chipotle Offer Different Items
McDonald’s has expanded its menu to offer salads and sandwiches that are made from fresh ingredients while Chipotle offers burritos as well as tater tots. In addition to these differences, McDonald’s also sells burgers that contain 100% pure beef while Chipotle serves only chicken or pork.
5. McDonald’s Has a Better Brand than Chipotle
McDonald’s is the largest restaurant chain in the world with over 35,000 locations around the globe. In fact, they have more locations than any other restaurant chain in America. So how does this relate to their brand image? Well, if you were asked about McDonald’s brand image, you would probably say positive things like “fast food” and “healthy” but what about Chipotle? If someone asked you about Chipotle’s brand image, you would probably say “fast food” and “healthy
Final Words
If you are a fan of both brands, you have probably noticed that they have a lot in common. Both brands offer fast food options, serve chicken as an entree and specialize in offering healthier menu items. This is not just a coincidence. As we’ve discussed, the similarities between these two brands are a result of their connection with an investment firm. At the same time, these two brands do not necessarily need to be connected. If they work hard to overcome their past issues, both brands could thrive independently once again.
