Chipotle Mexican Grill Inc (CMG)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,557,813	1,490,697	1,432,000	1,337,788	1,160,403	1,022,368	925,795	833,722	804,943	763,533	630,949	380,485	290,164	271,434	279,959	404,918	443,958	385,414	327,784	275,721
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,062,210	2,886,310	2,766,890	2,481,680	2,368,020	2,327,380	2,154,200	2,133,960	2,297,370	2,310,910	2,174,160	2,097,530	2,020,140	1,805,590	1,704,500	1,672,020	1,683,030	1,622,450	1,538,050	1,483,800
Return on total capital		50.87%	51.65%	51.75%	53.91%	49.00%	43.93%	42.98%	39.07%	35.04%	33.04%	29.02%	18.14%	14.36%	15.03%	16.42%	24.22%	26.38%	23.76%	21.31%	18.58%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,557,813K ÷ ($—K + $3,062,210K)
= 50.87%

Chipotle Mexican Grill's return on total capital has shown a positive trend over the quarters, indicating efficient utilization of its total capital resources. The company's return on total capital has consistently improved from 39.91% in Q1 2022 to a peak of 54.92% in Q1 2023. This upward trajectory suggests that Chipotle is generating increasing profits relative to its total capital employed, reflecting strong operational performance and effective capital allocation strategies. The consistently high return on total capital signifies that the company is effectively generating returns for both equity and debt holders. Overall, Chipotle's strong return on total capital performance indicates the company's ability to generate value and sustain profitability in the long term.