PASSAGE 1----CHIPOTLE VS. MCDONALD'S: Which fast food chain is really the best?
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Ashley Lutz and Samantha Lee Aug. 12, 2015, 4:33 PM
Chipotle has been credited with reinventing restaurants and eroding McDonald's market share.
But it turns out McDonald's actually has many advantages over the Mexican food chain.
We calculated how the brands measure up when it comes to cost, locations, and more.
PASSAGE 2----Three Reasons Chipotle Is Destroying McDonald's
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Ashley Lutz
Feb. 13, 2014, 2:57 PM
Chipotle is thriving.
The fast-casual chain posted a 9.3% sales gain in 2013. Meanwhile, former parent
company McDonald's saw sales fall by 1.4%.
The companies employ completely opposite strategies, Brian Sozzi at Belus
Capital Advisors wrote in a recent note to clients.
Chipotle is still much smaller than McDonald's — revenue last year was $844
million for the burrito chain versus the fast food giant's $28.1 billion.
But fast-casual restaurants like Chipotle continue to erode McDonald's market
share.
Sozzi shares a few reasons why Chipotle is dominating McDonald's.
1. Sticking to a classic menu.While McDonald's tacks on new menu items to
entice customers, Chipotle has stuck to the same menu since it opened. The
menu at McDonald's has grown 70% since 2007, Bloomberg reported last
year. Chipotle does a few things really well, making it easier to execute and
reduce customer wait times.
2. Making lines faster. Chipotle has aggressively worked to reduce wait times
during peak periods. Meanwhile, McDonald's is struggling with the longest drivethru wait times in decades. McDonald's is attempting to fix wait times by cutting
some menu items and adding employees to assist at check-out. But the
overloaded menu makes it difficult for operations to run smoothly, Sozzi says.
3. Emphasizing an ethical menu. Chipotle is in the process of eliminating GMOs
from its menu, and has long boasted about its antibiotic-free meats. As a result,
"people feel better about eating at Chipotle and share with others, personally or
on social media, that positive experience," Sozzi writes. Meanwhile, McDonald's
has struggled to shake its reputation as an unhealthy restaurant.
PASSAGE 3---- Is Chipotle really healthier than McDonald’s?
Published: Dec 29, 2014 10:44 a.m. ET
The similarities between fast-casual and fast-food restaurants
Getty Images, Bloomberg
Which would you choose?
By Quentin Fottrell, PERSONAL FINANCE REPORTER
Fresher, healthier, made-to-order meals from upstart fast-casual chains like Chipotle
Mexican Grill Inc. are stealing diners (and profit) from legacy burger joints, namely
McDonald’s Corp.
McDonald’s healthier offerings, like salads and apple slices, don’t appear to be giving
the fast-food restaurant the same “halo effect” as Chipotle, even as hipsters and young
office workers remain willing to stand in line for organic fare – not to mention lashings of
guacamole and cheese – at the Mexican-themed chain. But those who want to have a
healthier 2015 (and are partial to both restaurants) face an important question: Is a meal
from Chipotle really all that much better for you than one from McDonald’s?
Experts point out that you can just as easily blow your diet at either establishment.
One Chipotle burrito can be twice the calories of a Big Mac and have nearly a full day’s
worth of calories. A burrito with chicken, white rice, black beans, fajita vegetables,
tomatillo-green chili salsa, guacamole and cheese with a side order of chips is 1,695
calories — and has 690 milligrams of sodium. (Chipotle states 2,300 milligrams of
sodium are the recommended limits for a 2,000 calorie daily diet.) A Big Mac — with two
beef patties, cheese, onions, lettuce, pickles, “special” sauce, and buns made with high
fructose corn syrup — has 530 calories, and 960 milligrams of sodium. A large order of
French Fries adds another 510 calories.
Of course, there are more healthful menu choices at both Chipotle and McDonald’s, and
more information is available online for those so inclined.
And to wash it all down? “Both Chipotle and McDonald’s have soda fountains with the
usual junk,” says Mike Jacobsen, executive director for the Center for Science in the
Public Interest, a Washington, D.C.-based think tank. He is referring to sugary drinks. A
large 32-ounce cup in Chipotle may sometimes come with inspirational stories by
Jonathan Safran Foer, Toni Morrison and Malcolm Gladwell, but that size still has
around 248 calories for a regular Coca-Cola, he adds. “One good thing about Chipotle
is that burritos generally have beans, which are a great source of dietary fiber and a
substitute for meat,” Jacobsen says.
“Chipotle does have that healthy halo,” says Julia Gallo-Torres, U.S. food service
category manager at research firm Mintel. “They’re perceived to have better quality
food, which comes from being freshly prepared in front of customers.” (McDonald’s was
actually an investor in Chipotle, but divested in 2006 before the Mexican chain went
public.) The customization trend — when people get to choose their ingredients — is
also a factor, she adds. Chipotle says it’s seeking ingredients that are not only fresh, but
“where possible” are sustainably grown and raised responsibly. When it can’t do this, it
tells people. “Customers are looking for communications from brands and a sense of
transparency,” she says.
McDonald’s is playing catch-up with Chipotle’s apple cart. Earlier this year, it pledged to
use “verified sustainable beef” by 2016. “This sounds simple, but it’s actually a big
challenge because there hasn’t been a universal definition of sustainable beef,”
according to the company’s policy statement. “Chipotle is already there,” Gallo-Torres
says. McDonald’s has also been hurt by questions about the contents of its burgers and
McRibs. Last year, it banned the use of “pink slime” – beef trimmings that have been
treated with ammonia. “Some consumers are afraid of McDonald’s,” she adds, “so the
company has a lot of work to do.”
PASSAGE 4 11 Unsettling Facts You Should Know About McDonald's Happy Meals
The Huffington Post | By Renee Jacques
Posted: 03/13/2014 8:26 am EDT Updated: 03/14/2014 12:59 pm EDT
If you're like many Americans, the thought of the McDonald's Happy Meal evokes, well, happiness. It was a
wonderful treat as a kid to go to Mickey D's and get the iconic package that held goodies beyond your wildest
imagination. Inside that red box was not only delicious and greasy fried food, but also a toy. What you really
wanted wasn't a burger, but that "101 Dalmatians" figurine (to complete your collection) or thoseBeanie
Babies (even if they were miniature versions).
And that little figurine made all the difference. The McDonald's staple seems to be one of the best ways to hook
kids on fast food at a seriously young age: Forty percent of children ages 2 to 11 ask their parents to take them to
McDonald's at least once a week, and 15 percent of preschoolers ask to go every single day. How has McDonald's
managed to win over Americans kids so thoroughly? Here are 11 facts about the Happy Meal that could help
explain.
1. McDonald's starts aggressive marketing to children at a very young age to develop trust and reliance.
In his book "Fast Food Nation: The Dark Side of the All-American Meal," Eric Schlosser explains the mentality
behind fast food establishments' aggressive marketing towards children. According to Schlosser, they try to
immediately seek dependence from kids at an extremely young age. Schlosser references another book written by
James U. McNeal, called "Kids As Customers," in which McNeal explains that fast food companies want children to
see them as a "mom or dad, grandma or grandpa." If companies find a way to foster this relationship with a child
at a young age, it is more likely that the child will establish belief and trust in the company.
McDonald's understands this, which is why, at one time on their website, the company asked kids to send Ronald
McDonald an email telling him their favorite menu item, favorite book and favorite sports team and even asked
them for their names. The site told kids that Ronald McDonald was "the ultimate authority in everything." A
McDonald's representative told the Huffington Post that it believes Ronald McDonald "helps deliver messages to
families on many important subjects such as safety, literacy, and the importance of physical activity and making
balanced food choices."
2. McDonald's is the largest distributor of toys in the world.
The chain understands that kids love toys, and includes one in 20 percent of all sales. Each year, McDonald's
distributes 1.5 billion toys worldwide. That's more than Hasbro and Mattel.
3. Because of the toys, McDonald's is most American kids' favorite restaurant.
In Technomic's 2009 Kids And Moms Consumer Trend report, children "overwhelmingly chose McDonald's as their
favorite fast-food restaurant." In total, 37 percent of kids said it was their first choice. Other surveys hint that
McDonald's toy-toting Happy Meal is the reason for this trend. Eighty-seven percent of six and seven-year-olds and
80 percent of eight and nine-year-olds said they "enjoyed getting a toy with their kids' meals."
4. Happy Meals are so enticing that adults sometimes buy them for themselves.
In 1997, McDonald's introduced the "Teenie Beanie Baby" toy in Happy Meals. During that time, McDonald's sold
about 100 million Happy Meals in one week. In that week, four Teenie Beanie Baby Happy Meals, which are
marketed toward children between the ages of three and nine, were sold for every American child in that age
group. Even more interesting, many adult Beanie Baby collectors reported buying the meals and keeping the dolls
while (maybe) throwing the food away.
5. McDonald's partners up with almost every entertainment company in a child's life.
Here are just some of the companies and brands McDonald's has partnered with for its Happy Meals (some might
surprise you): the NBA, the Olympics, Nickelodeon, Barbie, Teletubbies, Transformers, Hello Kitty, Lego and, of
course, Disney.
6. But after ten years of working with them, Disney decided partnering with McDonald's was a pretty bad idea.
As of 2006, Happy Meals no longer feature children's favorite Disney characters. In explaining its change of heart,
Disney said that it was a company "that prides itself on being family friendly" and wanted to "distance itself from
fast food," especially given the food's links to childhood obesity.
7. San Francisco banned Happy Meals... but McDonald's found a way around that.
In December 2011, in an effort to stop incessant junk food marketing to children, San Francisco made the bold
move to ban the sale of Happy Meals. People could still purchase a "Happy Meal," but in order for the meal to
include a toy, it had to comply with the city's nutritional standards. The standards required that such Happy Meals
contain "less than 640 milligrams of sodium" and "less than 600 calories" and include "0.5 cups or more of fruits
and 0.75 cups or more of vegetables." At the time, Happy Meals did not meet those requirements.
However, McDonald's must have had some pretty savvy lawyers, because they figured out a way to allow parents
to purchase Happy Meals -- toy included. San Francisco's ban could not prohibit the chain from selling toys, so if
your child wanted a toy, you could just pay an extra 10 cents for it. And McDonald's required the purchase of a
Happy Meal in order to buy a toy.
8. The "healthier" Happy Meals at McDonald's are still pretty bad for kids.
The company has always struggled to find a balance between offering tasty fast food that appeals to kids and
healthier options that will satisfy health-conscious parents. And it looks like their "healthy changes" still just aren't
good enough when you look at their nutritional values. In 2011, McDonald's added apples to every package while
removing the caramel sauce and reduced the french fry offering from 2.4 oz. to 1.1 oz. A McDonald's
representative told the Huffington Post that the automatic inclusion of apple slices, smaller fries and the option of
choosing fat-free milk makes the "most popular Happy Meals have an average of 20 percent fewer calories than
[the] most popular meals previously."
However, the meals still round out to about 600 calories, which experts say is way too much for small children.
Also, public health experts say that while they are satisfied with McDonald's adding apples to every meal, they are
concerned that the company is "health washing" kids by "rebranding" the Happy Meal foods as "healthy" when, in
reality, they are just "less unhealthy."
9. The Happy Meals in other countries don't seem that much healthier.
The McDonald's restaurants in America aren't the only ones pushing fattening junk food on young children. Happy
Meals in other countries are also relatively unhealthy. For example, in Italy, a child can get a "Pizzarotto," which is
a mini-calzone stuffed with tomato sauce and mozzarella cheese. In Thailand, kids have the option of munching on
a pork burger, a meat with a higher calorie count and higher fat contentthan beef.
10. Now, McDonald's is trying to become your kid's favorite reading material.
In their latest effort to stay on American kids' radars, for two weeks in November 2013, McDonald's swapped the
toys in their Happy Meals for books. The company also announced they were planning to distribute a digital book
every month on their website, HappyMeal.com. The digital book elicited the most criticism from those who felt the
company needed to curtail its marketing efforts toward children since, according to Sriram Madhusoodanan, a
national organizer with Corporate Accountability International, "kids tend to interact much longer with a brand in
cyberspace than they might do otherwise."
11. Good news: Today, Happy Meal sales have declined. Bad news: Kids are now just buying off the Dollar Menu.
It seems that while the Happy Meal changes in portion size and side options have resulted in fewer calories and an
inherently "healthier" meal, they have also led to a decline in sales. In 2011, an NPD Group report stated that
Happy Meal sales (along with other child meal sales) were down six percent, from 1.3 billion to 1.2 billion orders.
While health and dietary concerns could account for a portion of this decline, the report doesn't state that overall
visits by children to fast food restaurants have declined at all. This means that parents could be realizing that it's
cheaper to just order their kids' food off the dollar menu or split a large meal among family members.
In which case, McDonald's wins yet again: Kids may not care about the toys anymore, but they still care about
getting their hands on some fast food.
Correction: A previous version of this post incorrectly stated that Disney still sells McDonald's food in its theme
parks. It does not.
PASSAGE 5---- Doctor’s Orders: Stop Marketing Junk Food to Kid
Join more than 3000 health professionals and institutions from around the world
urging McDonald's to stop marketing junk food to children.
An open letter to McDonald’s CEO Don Thompson
As health professionals engaged directly in the largest preventable health crisis facing
the U.S. -- and increasingly, the globe -- we ask that you stop marketing junk food to
children.
The rates of sick children are staggering. Ballooning health care costs and an
overburdened health care system make treatment more difficult than ever. And we know
that reducing junk food marketing can significantly improve the health of kids.
Our community is devoted to caring for sick children and preventing illness through
public education. But our efforts cannot compete with the hundreds of millions of
dollars you spend each year directly marketing to kids.
Today, our private practices, pediatric clinics, and emergency rooms are filled with
children suffering from conditions related to the food they eat. In the decades to come,
one in three children will develop type 2 diabetes as a result of diets high in McDonald’s-
style junk food, according to the Centers for Disease Control and Prevention. This
generation may be the first in U.S. history to live shorter lives than their parents.
The rise of health conditions like diabetes and heart disease mirrors the growth of your
business – growth driven in large part by children’s marketing. Although the American
Academy of Pediatrics deems such marketing “inherently deceptive to children under
8,” you continue to use it as a vehicle to grow your enterprise.
As one marketing expert puts it, “Ronald captures kids’ attention better than anyone
else can.” You use Ronald McDonald and other promotions to appeal to kids in
environments that informed parents and health professionals can’t constantly monitor –
from schools to libraries to the internet. Today, your icon is as recognized as Santa
Claus, and the McDonald’s model of marketing is used by a range of abusive industries.
Obesity and disease levels among kids are rising even though parents continue to parent
and, as researchers at Johns Hopkins Bloomberg School of Public Health conclude, kids
continue to exercise at rates similar to those of two decades ago. So what has changed?
What has changed is the food children eat and the amount of marketing they are
bombarded with. Even when parents resist the “nag effect” cultivated by McDonald’s to
access the $40 – 50 billion in annual purchases that children under 12 control,
advertising creates brand loyalties that persist into adulthood.
Advertising is at the heart of McDonald’s business model, with annual expenditures
reaching $2 billion. Your marketing practices set the standard for competitors across
industries.
We know the contributors to today’s epidemic are manifold and a broad societal
response is required. But marketing can no longer be ignored as a significant part of this
massive problem.
We ask that you heed our concern and retire your marketing promotions for food high
in salt, fat, sugar, and calories to children, whatever form they take – from Ronald
McDonald to toy giveaways. Our children and health care system will benefit from your
leadership on this issue.
PASSAGE 6----Chipotle founder said McDonald's chicken farm was the most
disgusting thing he'd ever seen
Hayley Peterson
Feb.
2, 2015,
4:48 PM
Business
InsiderChipotle
founder Steve Ells.
Chipotle once had a close relationship with McDonald's.
The Big Mac chain invested in Chipotle's business in 1998 when it had 14
locations. By 2005, McDonald's had a 90% stake — and Chipotle had
460 locations.
During that period, McDonald's executives invited Chipotle founder
Steve Ells to one of the company's chicken farms, and Ells was
apparently shocked by what he saw there, Bloomberg reports.
After McDonald's invited Ells to a chicken farm in Arkansas, Ells' father,
Bob Ells, told Bloomberg, "he came back and said it was absolutely the
most disgusting thing he'd ever seen in his life."