Chapter 11 talks about developing and managing a new product. Chipotle hasn’t had any major changes on the menu in almost 20 years. The fast-casual chain announced the first-ever min the beginning of the year, a major addition to its menu: Sofritas, a meatless protein, that will be used to make vegan and veggie burritos and tacos. Chipotle describes the meal base as organic tofu that’s shredded and braised with chipotle chilis, roasted poblanos and spices.
As we analyzed on the previous chapter, the add of Sofritas on the menu gives a prime example of a product idem added to the existing product line, which are the other types of protein available to complement the burritos and tacos. It can also be analyzed as a simultaneous product development, which is a different product with the same assets.
Many investors see Chipotle Mexican Grill as one of the more-successful growth stories in recent memory. The company's stock performance confirms as much; the shares have risen approximately 1,300% since Chipotle's IPO in 2006, over 1,000% in the last five years, and over 80% in the last year alone.
However, investors would make a huge mistake to write off Chipotle as merely a once-great investment. In reality and despite its formidable size, Chipotle remains in a high-growth phase. This becomes most evident when viewed in combination with the company's store expansion, which investors should best consider alongside the company's two new restaurant brands.
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