Chipotle Mexican Grill Inc (CMG)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	2,010,230	1,620,510	1,181,530	812,763	293,781
Revenue	US$ in thousands	11,313,900	9,871,650	8,634,650	7,547,060	5,984,630
Pretax margin		17.77%	16.42%	13.68%	10.77%	4.91%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $2,010,230K ÷ $11,313,900K
= 17.77%

The pretax margin of Chipotle Mexican Grill Inc has shown a positive trend over the past five years, increasing from 4.91% as of December 31, 2020, to 17.77% as of December 31, 2024. This indicates that the company has been able to efficiently manage its expenses relative to its revenue before accounting for taxes.

The steady improvement in the pretax margin reflects effective cost management, potentially through operational efficiency enhancements, pricing strategies, or other initiatives aimed at optimizing profitability. A rising pretax margin is generally considered a positive sign of financial health as it indicates the company's ability to generate higher profits before tax obligations.

Chipotle's consistent growth in pretax margin suggests that the company has been successful in enhancing its operating performance and profitability over the years, which may be a result of strategic decision-making, improved operational processes, or successful revenue growth strategies.

Overall, the increasing trend in Chipotle's pretax margin highlights the company's ability to generate higher earnings relative to its revenue, showcasing a positive trajectory in its financial performance.