Chipotle Mexican Grill Inc. (NYSE:CMG)

Current assets exhibited volatility over the five-year period. Initial values decreased before increasing, then decreased again. Adjusted current assets mirrored this trend, demonstrating a similar pattern of fluctuation. The difference between reported and adjusted current assets remains relatively consistent throughout the period.

Overall Trend

From 2021 to 2022, both current assets and adjusted current assets decreased. Current assets fell from US$1,381,564 thousand to US$1,175,837 thousand, while adjusted current assets decreased from US$1,383,514 thousand to US$1,177,017 thousand. A subsequent increase occurred between 2022 and 2024, with current assets rising to US$1,780,587 thousand and adjusted current assets reaching US$1,783,540 thousand. The most recent period, 2024 to 2025, shows a decline in both measures, with current assets decreasing to US$1,466,953 thousand and adjusted current assets falling to US$1,468,623 thousand.

Magnitude of Change

The largest absolute increase in current assets occurred between 2022 and 2023 (US$444,876 thousand), while the largest absolute decrease occurred between 2024 and 2025 (US$313,634 thousand). Adjusted current assets experienced a similar pattern, with the largest increase between 2022 and 2023 (US$446,438 thousand) and the largest decrease between 2024 and 2025 (US$314,917 thousand).

Adjustment Impact

The difference between current assets and adjusted current assets remained relatively stable throughout the period, ranging from approximately US$2,000 thousand to US$2,700 thousand. This suggests a consistent, though modest, adjustment being applied to current asset valuation. The adjustments appear to consistently increase the reported value of current assets.

The fluctuations in both current and adjusted current assets warrant further investigation to understand the underlying drivers. The consistent adjustment suggests a specific accounting practice or valuation method is being applied, and its rationale should be reviewed.

Total assets and adjusted total assets exhibited a generally increasing trend from 2021 through 2024, followed by a slight decrease in 2025. The values for both metrics are remarkably close across all reported periods, suggesting the adjustments made are relatively minor in magnitude.

Overall Trend

From 2021 to 2024, both total assets and adjusted total assets increased consistently. Total assets grew from US$6,652,958 thousand to US$9,204,374 thousand, representing a cumulative increase of approximately 38.5%. Adjusted total assets mirrored this growth, rising from US$6,654,908 thousand to US$9,207,327 thousand, a cumulative increase of approximately 38.6%.

Year-over-Year Changes

The largest year-over-year increase in both metrics occurred between 2022 and 2023. Total assets increased by US$1,116,858 thousand, while adjusted total assets increased by US$1,118,420 thousand. The increase from 2023 to 2024 was also substantial, though slightly less pronounced. A decrease was observed in 2025, with total assets declining by US$210,000 thousand and adjusted total assets decreasing by US$210,000 thousand.

Adjustment Magnitude

The difference between total assets and adjusted total assets remains consistently small throughout the observed period. In each year, the adjusted value is only a few thousand dollars higher than the reported total assets. This indicates that the adjustments being made are not materially impacting the overall asset base.

The consistency in the relationship between total assets and adjusted total assets suggests a systematic, recurring adjustment process. Further investigation into the nature of these adjustments would be necessary to understand their underlying cause and potential implications.

Current liabilities exhibited a consistent upward trend over the five-year period, increasing from US$873.682 million in 2021 to US$1.188.142 million in 2025. However, adjusted current liabilities demonstrate a different pattern, with a more moderate increase and a noticeable divergence from the reported current liabilities.

Overall Trends

Reported current liabilities increased by approximately 36.0% between 2021 and 2025. Adjusted current liabilities increased by approximately 32.2% over the same period. The difference between the two values widens over time, suggesting increasing adjustments are being made to the initially reported current liabilities.

Year-over-Year Changes

From 2021 to 2022, current liabilities increased by 5.5%, while adjusted current liabilities increased by 3.0%. This indicates a larger initial difference between the reported and adjusted figures. The largest year-over-year increase in current liabilities occurred between 2022 and 2023 (11.9%), while the largest increase in adjusted current liabilities occurred between 2023 and 2024 (13.4%). The rate of increase for both metrics slowed between 2024 and 2025, with current liabilities increasing by 1.7% and adjusted current liabilities increasing by 2.4%.

The Adjustment Gap

The difference between current liabilities and adjusted current liabilities grew from US$156.351 million in 2021 to US$240.375 million in 2025. This suggests that a growing portion of the initially reported current liabilities is being reclassified or adjusted through some accounting treatment. Further investigation into the nature of these adjustments would be necessary to understand the underlying reasons for this trend.

The consistent growth in both reported and adjusted current liabilities suggests an overall expansion of short-term obligations. The increasing gap between the two figures warrants further scrutiny to determine the specific accounts being adjusted and the potential impact on the company’s financial position and liquidity.

Total liabilities and adjusted total liabilities both demonstrate a consistent upward trend over the five-year period from 2021 to 2025. However, the magnitude of increase differs between the two measures, indicating a systematic adjustment being applied.

Overall Growth

Total liabilities increased from US$4,355,584 thousand in 2021 to US$6,163,924 thousand in 2025, representing a cumulative growth of approximately 41.3%. Adjusted total liabilities grew from US$4,057,468 thousand to US$5,797,875 thousand, a cumulative increase of roughly 42.8% over the same period.

Year-over-Year Changes

The year-over-year increases in total liabilities were as follows: 4.9% (2022), 9.2% (2023), 11.3% (2024), and 11.1% (2025). The corresponding increases for adjusted total liabilities were: 5.2% (2022), 9.5% (2023), 12.0% (2024), and 10.1% (2025). The adjusted figures consistently show a slightly higher percentage increase than the reported total liabilities.

Adjustment Impact

The difference between total liabilities and adjusted total liabilities widens each year. In 2021, the adjustment reduced total liabilities by approximately US$298,116 thousand. By 2025, this adjustment had grown to approximately US$366,049 thousand. This suggests that the nature or amount of the adjustment is increasing over time.

Growth Rate Comparison

While both metrics exhibit similar overall growth, the adjusted total liabilities consistently demonstrate a higher growth rate annually. This indicates that the adjustments are not simply offsetting existing liabilities but are contributing to a more substantial increase in the reported financial obligations when considered after the adjustment.

The consistent and increasing adjustment to total liabilities warrants further investigation to understand the underlying components and their impact on the company’s financial position. The nature of these adjustments should be clarified to assess their potential implications for financial risk and performance.

Shareholders’ equity and adjusted shareholders’ equity both demonstrate an overall increasing trend from 2021 to 2024, followed by a decrease in 2025. However, the adjusted figures consistently exceed those reported for shareholders’ equity across the observed period.

Overall Trend

From 2021 to 2024, both shareholders’ equity and adjusted shareholders’ equity experienced growth. Shareholders’ equity increased from US$2,297,374 thousand to US$3,655,546 thousand, representing a substantial rise. Adjusted shareholders’ equity followed a similar pattern, growing from US$2,597,440 thousand to US$3,943,284 thousand over the same timeframe. However, in 2025, both metrics declined; shareholders’ equity decreased to US$2,830,607 thousand, and adjusted shareholders’ equity fell to US$3,198,326 thousand.

Difference Between Metrics

A consistent difference exists between shareholders’ equity and adjusted shareholders’ equity throughout the period. The adjusted figures are consistently higher, with the difference ranging from approximately US$300,070 thousand in 2021 to US$287,738 thousand in 2025. This suggests the presence of adjustments being made to the reported shareholders’ equity, potentially related to items not reflected in the standard equity calculation.

Growth Rates

The most significant growth occurred between 2022 and 2023 for both metrics. Shareholders’ equity increased by approximately 29.2% during this period, while adjusted shareholders’ equity grew by approximately 26.8%. The growth rate slowed considerably between 2023 and 2024, and then reversed in 2025, with both metrics experiencing declines of approximately 22.6% and 18.6% respectively.

2025 Decline

The decrease in both shareholders’ equity and adjusted shareholders’ equity in 2025 warrants further investigation. The magnitude of the decline suggests a potentially significant event or series of events impacting equity during that year. The fact that the adjusted equity also decreased indicates the underlying adjustments did not offset the overall reduction in equity.

In summary, the observed trends indicate a period of growth in equity followed by a notable decline in the most recent year. The consistent difference between shareholders’ equity and adjusted shareholders’ equity highlights the importance of understanding the nature of these adjustments for a complete financial picture.

An examination of the financial information reveals significant shifts in both reported and adjusted capitalization structures over the five-year period. While reported figures show increases initially, followed by a decrease in the most recent year, the adjusted figures consistently demonstrate growth throughout the period.

Total Capital

Reported total capital increased from US$2,297,374 thousand in 2021 to US$3,655,546 thousand in 2024, before declining to US$2,830,607 thousand in 2025. In contrast, adjusted total capital exhibited a steady upward trajectory, rising from US$6,117,754 thousand in 2021 to US$8,483,902 thousand in 2024, with a slight decrease to US$8,274,140 thousand in 2025. This divergence suggests the adjustments are having an increasingly substantial impact on the overall capital structure.

Debt and Equity Composition

Shareholders’ equity, as reported, increased from US$2,297,374 thousand in 2021 to US$3,062,207 thousand in 2023, peaking at US$3,655,546 thousand in 2024 before decreasing to US$2,830,607 thousand in 2025. Adjusted shareholders’ equity followed a similar pattern, growing from US$2,597,440 thousand to US$3,943,284 thousand, and then decreasing to US$3,198,326 thousand. The most notable difference lies in the magnitude of the adjustments, consistently increasing the reported equity values.

Total reported debt is not populated for any of the years. However, adjusted total debt shows a consistent increase, moving from US$3,520,314 thousand in 2021 to US$5,075,814 thousand in 2025. This indicates that the adjustments primarily relate to recognizing previously unrecorded debt obligations. The increasing adjusted debt levels contribute significantly to the growth in adjusted total capital.

Impact of Adjustments

The difference between reported and adjusted total capital widens over time. In 2021, adjusted total capital was approximately 2.66 times the reported total capital. By 2025, this ratio increased to approximately 2.92. This suggests that the adjustments are becoming increasingly material to the overall financial picture.

The adjustments consistently increase shareholders’ equity, implying the recognition of items not previously reflected in the reported equity position. The substantial increase in adjusted debt suggests the inclusion of obligations, potentially related to operating leases or other off-balance-sheet financing arrangements, that are not fully captured in the reported debt figures.

In summary, the capitalization structure, when considering the adjustments, demonstrates a pattern of sustained growth in total capital, driven primarily by the recognition of additional debt. The increasing divergence between reported and adjusted figures highlights the importance of understanding the nature and impact of these adjustments for a comprehensive assessment of the company’s financial position.

Revenue and adjusted revenue both demonstrate a consistent upward trend over the five-year period from 2021 to 2025. While both metrics move in the same direction, a consistent difference exists between reported revenue and adjusted revenue.

Overall Growth

Reported revenue increased from US$7,547,061 thousand in 2021 to US$11,925,601 thousand in 2025, representing a cumulative growth of 57.8%. Adjusted revenue grew from US$7,575,662 thousand in 2021 to US$11,927,399 thousand in 2025, a cumulative growth of 57.4%.

Year-over-Year Growth

The year-over-year growth rate for reported revenue was 14.4% (2022), 14.3% (2023), 14.7% (2024), and 5.4% (2025). The year-over-year growth rate for adjusted revenue was 14.2% (2022), 14.2% (2023), 14.6% (2024), and 5.2% (2025). Growth rates were remarkably similar for both revenue figures each year.

Revenue Adjustments

Adjusted revenue consistently exceeds reported revenue throughout the period. The difference between the two figures is approximately US$28,601 thousand in 2021, US$26,720 thousand in 2022, US$26,609 thousand in 2023, US$28,900 thousand in 2024, and US$1,798 thousand in 2025. The magnitude of the adjustment decreased significantly in 2025.

The consistent positive adjustment to revenue suggests the presence of items impacting the initial revenue recognition that are subsequently added back. The decreasing difference in 2025 may indicate a change in the nature or frequency of these adjustments.

Reported net income demonstrates a consistent upward trajectory over the five-year period. However, a comparison with adjusted net income reveals a divergence in the rate of growth and the presence of recurring adjustments.

Overall Trend

Both net income and adjusted net income exhibit positive growth from 2021 to 2025. Net income increased from US$652,984 thousand in 2021 to US$1,535,761 thousand in 2025, representing a substantial overall increase. Adjusted net income followed a similar pattern, rising from US$668,465 thousand to US$1,618,752 thousand over the same period.

Adjustment Magnitude

In each year, adjusted net income exceeds reported net income. The difference between the two figures ranges from approximately US$15,481 thousand in 2021 to approximately US$82,991 thousand in 2025. This indicates the presence of recurring items that are added back to reported net income to arrive at the adjusted figure.

Growth Rate Comparison

While both metrics show growth, the growth rate of reported net income appears to be decelerating in later years. The increase from 2022 to 2023 was more significant than the increase from 2024 to 2025. Adjusted net income demonstrates a more consistent growth rate throughout the period, with a notable increase from 2024 to 2025.

Adjustment Impact on Growth

The adjustments contribute to a higher overall growth rate when considering adjusted net income. In 2024, reported net income growth slowed, but adjusted net income remained robust, suggesting the adjustments played a role in maintaining a stronger growth profile. The largest absolute increase in adjusted net income occurred between 2024 and 2025.

The consistent positive adjustments to net income warrant further investigation to understand the nature of these items and their impact on the company’s underlying profitability. The increasing magnitude of the adjustments over time also suggests a potential shift in the composition of earnings.