Chipotle Mexican Grill Inc (CMG)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	1,620,510	1,181,530	812,763	293,781	458,285
Revenue	US$ in thousands	9,871,650	8,634,650	7,547,060	5,984,630	5,586,370
Pretax margin		16.42%	13.68%	10.77%	4.91%	8.20%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $1,620,510K ÷ $9,871,650K
= 16.42%

Chipotle Mexican Grill's pretax margin has shown an upward trend over the past five years, starting at 8.20% in 2019 and reaching 16.42% in 2023. This indicates a consistent improvement in the company's ability to generate profits before accounting for taxes relative to its total revenue. The steady increase in pretax margin suggests that Chipotle has been effectively managing its costs and operating efficiently over the years, resulting in higher profitability. Overall, the rising trend in pretax margin reflects positively on Chipotle's financial performance and operating effectiveness.