Steve Ells attended
the Culinary Institute of America in
Hyde Park, New York. Afterward, he became a line cook for
Jeremiah Tower at
Stars in
San Francisco. There, Ells observed the popularity of the
taquerías and
San Francisco burritos in the
Mission District. In 1993, Ells took what he learned in San Francisco and opened the first Chipotle Mexican Grill in
Denver,
Colorado, in a former
Dolly Madison Ice Cream store at 1644 East Evans Avenue, near the
University of Denver campus, using an $85,000 loan from his father. Ells had originally planned to use funds from the first Chipotle to open a fine-dining restaurant, but instead focused on Chipotle Mexican Grill when the restaurants saw success. In 1998, the first restaurant outside of Colorado opened in
Kansas City, Missouri. In 1998,
McDonald's made an initial minority investment in the company. By 2001, McDonald's had grown to be Chipotle's largest investor. On January 26, 2006, Chipotle made its
initial public offering (IPO) after increasing the share price twice due to high pre-IPO demand. At the time Chipotle had 500 stores. In its first day as a public company, the stock rose exactly 100%, resulting in the best U.S.-based IPO in six years, and the second-best IPO for a restaurant after
Boston Market. The money from the offering was then used to fund new store growth. In March 2005, Monty Moran was appointed president and chief operating officer of Chipotle while Ells remained chairman and CEO. In October 2006, McDonald's fully divested from Chipotle. This was part of a larger initiative for McDonald's to divest all of its non-core business restaurants—Chipotle,
Donatos Pizza, and Boston Market—so that it could focus on the main McDonald's chain. McDonald's had invested approximately $360
million into Chipotle, and took out $1.5
billion. In 2008, Chipotle opened its first location outside of the United States in
Toronto. In January 2009, president and chief operating officer Monty Moran was promoted to co-CEO, a position that he would share with Ells, while Moran retained his president position. In a list of fastest-growing
restaurant chains in 2009, Chipotle was ranked eighth, based on increases in U.S. sales over the past year, and in 2010 Chipotle was ranked third.
Consumer Reports ranked Chipotle as the best Mexican fast-food chain in 2011. The company serves approximately 750,000 customers per day. In December 2010, Chipotle hired chef Nate Appleman to develop new cuisine. Appleman has won
Rising Star Chef from the
James Beard Foundation, was named "Best New Chef" by the
Food & Wine magazine, and competed on
The Next Iron Chef. In 2010,
U.S. Immigration and Customs Enforcement (ICE) audited Chipotle's Minneapolis restaurants, and found that some employees had been hired using fraudulent documents. In December, Chipotle fired 450 employees from its Minneapolis restaurants as a result of the audit, resulting in protests by local groups. In February 2011, ICE expanded the audit to include 60 restaurants in
Virginia and
Washington, D.C. which resulted in 40 workers being fired. In April 2011, the criminal division of the
attorney general's office in Washington, D.C., joined the case, and ICE agents began interviewing employees at 20 to 25 restaurants in other locations, such as
Los Angeles and
Atlanta. In response to the government investigations, Chipotle hired former director of ICE
Julie Myers Wood and high-profile attorneys
Robert Luskin and
Gregory B. Craig. In April 2014, Chipotle announced an increase in menu prices for the first time in nearly three years, due to increasing costs for steak, avocados, and cheese. The price increase was expected to be rolled out from the end of second quarter of 2014 through the end of the third quarter. In late 2015, Chipotle expanded its mobile strategy through delivery partnerships with tech startups like
Tapingo, a delivery service that targets college campuses. In December 2016, Chipotle announced that co-CEO Monty Moran has stepped down from his role effective immediately with Ells becoming the sole CEO. Eleven months later, Ells announced in November 2017 that he would be stepping down as CEO. In December 2017, Chipotle announced it signed a 15-year lease and in late 2018 will move around 450 corporate employees—currently housed in multiple buildings around downtown Denver—into the new 1144 Fifteenth Tower and occupy around 126,000 square feet or 5 floors of the 40-story tower. In February 2018, Chipotle announced that Taco Bell CEO
Brian Niccol would replace Ells as CEO starting on March 5 while Ells would retain his chairman position. Many industry analysts praised Niccol's appointment saying that Chipotle "needed new blood". Chipotle stock went up $30.27, or 12.04%, as a result of the announcement. However, other analysts criticized the announcement by saying that "the move goes against everything the burrito chain stands for". In May 2018, Chipotle announced that it would relocate headquarters from Denver to
Newport Beach, California, in
Southern California. Corporate functions handled in their Denver and New York offices would move to Newport Beach or to an existing office in
Columbus, Ohio. This move would impact 400 workers, some being offered relocation and retention packages. In May 2018, Chipotle announced the "Chipotlane" and began testing it in the U.S.. The Chipotlane acts as a drive-thru, but it is for mobile order pickup only; customers are unable to order food at the handout window but are welcome to pick up their mobile orders through the Chipotlane or inside the restaurant. As of 2023, there are over 500+ locations which include the Chipotlane in order to make the restaurant run more efficiently. In June 2018, the company announced the closing of 65 under-performing restaurants. Ells broke all ties with the company in March 2020 by resigning as its chairman and departing from its board of directors. In January 2023, the company announced plans to hire 15,000 workers and expand to 7,000 locations, up from a previous goal of 6,000. This would double its footprint. At the time of the announcement, it had more than 100,000 employees. An article in
The Wall Street Journal in July noted the chain would focus on opening 700–800 new locations in small towns and cities as part of its plan to expand by nearly 3,800 locations, in territory traditionally dominated by chains like
McDonald's and
Applebee's. In 2023 Chipotle saw $9.9 billion in revenue with 14.3% growth year on year and $3 million in average unit volumes (per restaurant revenue) and 7.9% growth in comparable sales; in 2023 37.4% of their revenue came via online orders, third-party delivery services or their new Chipotlanes. on a new automated avocado processing machine, Autocado. The companies claimed that this machine could peel and cut an avocado in less than 30 seconds and operate unattended on a large batch, which could significantly reduce the time and labor required to prepare large quantities of guacamole. Chipotle's share price fell more than 9% after fiscal second quarter results showed same-store sales shrinking by 4%, compared to 0.4% in the prior quarter. In April 2025, Chipotle announced the opening of a location in
Mexico by early 2026, looking to expand into new markets in the region. In August 2025, Chipotle announced plans of delivering food via drone aircraft within the greater Dallas area through a partnership with
Zipline. By focusing on fresh, high quality ingredients, Chipotle's fast casual business model leverages green marketing to differentiate itself from traditional fast food.
Expansion attempts into other types of cuisines lunch bowl In the 2010s, Ells tried to diversify the company by creating or acquiring several subsidiaries. These subsidiaries offered very different cuisines compared to their parent company. Examples include soul food (
Soul Daddy), Asian cuisine (
ShopHouse Southeast Asian Kitchen), pizza (Pizzeria Locale), and burgers (Tasty Made). In 2023, Chipotle had also tried incorporating
California-inspired bowls into the Farmesa Fresh Eatery concept. The few test locations were not a financial success and all concepts were discontinued. In 2011, Steve Ells was a judge for the TV show ''
America's Next Great Restaurant'' and investor of
ANGR Holdings, the company that will be running the winning concept's restaurants. Chipotle has agreed to purchase Ells' investment in ANGR at his cost, provide support for ANGR operations, and invest a total of $2.3 million in cash contributions. The winning concept,
Soul Daddy, was quickly closed after operating for 8 weeks. The company has said the new restaurant "would follow the Chipotle service format and its focus on 'food with integrity' in ingredients". Chipotle's plan was to start with only one store, and see how the restaurant works out before expanding the concept. On July 29, 2016, the company announced the opening of its first
Tasty Made burger restaurant in the fall. The newer restaurant concepts did not perform as well as expected, so ShopHouse Southeast Asian Kitchen and Tasty Made were closed in March 2017 respectively, leaving only Pizzeria Locale operating besides the parent company. In February 2023, Chipotle opened their first Farmesa Fresh Eatery in Santa Monica, California, serving bowls containing customers' choice of a protein, a green or grain, two sides, a topping, and a selection of up to five sauces. Some of the choices included steak, salmon, whipped potatoes, sweet potato chips, beets, and cauliflower. In July 2023, Chipotle exited the highly competitive pizza restaurant industry by announcing that they were closing all of their remaining Pizzeria Locale locations and would "dissolve the business". Chipotle also abandoned Farmesa in April 2024. == Corporate affairs ==