Chipotle Mexican Grill Inc (CMG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.10% | 34.43% | 32.60% | 29.77% | 29.44% |
| Operating profit margin | 15.78% | 13.44% | 10.67% | 4.85% | 7.95% |
| Pretax margin | 16.42% | 13.68% | 10.77% | 4.91% | 8.20% |
| Net profit margin | 12.45% | 10.41% | 8.65% | 5.94% | 6.27% |
Chipotle Mexican Grill has shown a consistent improvement in its profitability ratios over the past five years. The company's gross profit margin has increased steadily from 66.92% in 2019 to 70.50% in 2023, indicating efficient cost management and pricing strategies.
The operating profit margin has also shown a positive trend, with a significant improvement from 5.36% in 2020 to 16.17% in 2023. This suggests that Chipotle has been able to effectively control its operating expenses and boost operational efficiency.
The pretax margin has also exhibited a favorable growth trajectory, rising from 4.91% in 2020 to 16.42% in 2023. This indicates that the company has been able to generate higher profits before accounting for taxes, which is a positive sign for overall financial performance.
Furthermore, Chipotle's net profit margin has shown consistent improvement over the years, increasing from 6.27% in 2019 to 12.45% in 2023. This indicates the company's ability to effectively manage its bottom line and generate higher earnings relative to its revenue.
Overall, Chipotle Mexican Grill's profitability ratios reflect a strong and improving financial performance, with steady gains in margins across the board. This signifies effective cost control, operational efficiency, and overall profitability growth for the company.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.37% | 16.75% | 12.10% | 4.85% | 8.70% |
| Return on assets (ROA) | 15.27% | 12.98% | 9.81% | 5.95% | 6.86% |
| Return on total capital | 50.87% | 49.00% | 35.04% | 14.36% | 26.38% |
| Return on equity (ROE) | 40.13% | 37.97% | 28.42% | 17.61% | 20.81% |
Chipotle Mexican Grill has shown consistent improvement in profitability ratios over the past five years, indicating the company's effective management of assets and capital. The Operating Return on Assets (Operating ROA) has steadily increased from 9.15% in 2019 to 19.84% in 2023, demonstrating the company's ability to generate operating profits from its assets.
Similarly, the Return on Assets (ROA) has also shown an upward trend, reaching 15.27% in 2023 from 6.86% in 2019, indicating that Chipotle's profitability relative to its total assets has improved significantly.
The Return on Total Capital has shown substantial growth, from 27.76% in 2019 to 52.13% in 2023, suggesting that Chipotle has efficiently utilized its total capital to generate profits.
The Return on Equity (ROE) has also exhibited a positive trend, increasing from 20.81% in 2019 to 40.13% in 2023. This indicates that Chipotle has been successful in generating returns for its equity shareholders.
Overall, the profitability ratios of Chipotle Mexican Grill reflect a strong financial performance, showcasing the company's ability to effectively use its assets and capital to generate profits for its shareholders.