Chipotle Mexican Grill

Chipotle’s competitive advantages stem from brand and operating scale rather than hard switching costs. Intangible assets: 85/100. The brand stands for freshly prepared, customizable food at speed, with consistent AUVs and high unit returns; 2024 average restaurant sales reached $3.213 million and digital accounted for roughly one third of sales.

Operating disciplines around throughput and simple menus reinforce the experience. Cost advantages: 72/100. National scale in procurement, a single menu with limited SKUs, and Chipotlanes that lift volumes provide meaningful unit‑level leverage, though exposure to volatile inputs like beef and avocados caps durability.

Efficient scale: 60/100. Many trade areas can support only a few fast‑casual Mexican concepts; Chipotlane access and site selection help preempt rivals, but this is not a natural monopoly. Switching costs: 35/100. Guests can switch easily, though habit and loyalty points modestly reduce churn.

Network effects: 10/100. There is no true network effect beyond data‑driven personalization.

Weighted average (30% intangible, 30% cost, 25% efficient scale, 10% switching, 5% network) yields about 78. Key risks to the moat are commodity inflation, wage mandates, and any renewed food safety incident; management explicitly highlights these risks in filings.