Chipotle Mexican Grill Inc. (NYSE:CMG)

The financial performance, as indicated by the income statement items, demonstrates a generally positive trajectory over the analyzed period, though with notable fluctuations. Revenue experienced consistent growth from 2005 through 2019, followed by a period of volatility and then resumed growth. Income from operations and net income mirrored this pattern, exhibiting significant increases initially, a substantial decline in 2016, and subsequent recovery.

Revenue Growth

Revenue increased steadily from $627.695 million in 2005 to $5,586.369 million in 2019, representing a substantial compound annual growth rate. A dip occurred in 2020, likely influenced by external factors, with revenue at $5,984.634 million. Revenue then experienced a significant increase, reaching $11,925.601 million in 2025.

Profitability Trends

Income from operations followed an upward trend from 2005 to 2015, increasing from $30.994 million to $763.589 million. A dramatic decrease was observed in 2016, falling to $34.567 million. Subsequent years showed recovery, with income from operations reaching $1,916.333 million in 2025. Net income exhibited a similar pattern, peaking at $475.602 million in 2015, declining sharply in 2016 to $22.938 million, and then recovering to $1,535.761 million in 2025.

Operational Performance

The period between 2005 and 2015 demonstrates increasing operational efficiency, as evidenced by the growth in both revenue and income from operations. The significant decline in 2016 suggests potential operational challenges or increased costs during that year. The subsequent recovery indicates successful mitigation of those challenges and a return to improved operational performance.

Post-2019 Performance

The years following 2019 show a period of adjustment, with revenue and profitability impacted by external events in 2020. However, the strong rebound in 2021, 2022, 2023, 2024 and 2025 indicates resilience and an ability to capitalize on changing market conditions. The growth in both revenue and income from operations during this period suggests improved efficiency and market positioning.

Overall, the income statement reflects a company that experienced substantial growth and profitability for a significant period, encountered a notable setback in 2016, and subsequently demonstrated a strong recovery and continued growth through 2025. The recent performance suggests a return to a period of robust financial health.

Over the period examined, both current assets and total assets demonstrate significant growth, though with notable fluctuations. Initial growth is relatively moderate, accelerating considerably in the late 2000s and early 2010s, followed by periods of decline and then substantial increases again. A particularly large surge in total assets is observed in 2019, which warrants further investigation.

Current Assets Trend

Current assets experienced a dramatic increase from 2005 to 2011, growing from approximately 18 million to over 500 million US dollars. A subsequent decrease occurred in 2015 and 2016, falling to around 522 million. From 2016, current assets generally trended upward again, reaching a peak of over 1.6 billion in 2022 before decreasing in 2023 and 2024. The most recent period shows a slight decline to approximately 1.47 billion.

Total Assets Trend

Total assets mirrored the general trend of current assets, with consistent growth from 2005 to 2014, increasing from approximately 392 million to over 2.5 billion. A significant decrease in total assets occurred in 2015 and 2016, dropping to around 2.03 billion. However, 2019 witnessed an extraordinary increase, with total assets jumping to over 5.1 billion. This growth continued into 2020, reaching nearly 6 billion, before stabilizing and fluctuating between 6.6 and 8 billion over the subsequent years. The latest figures indicate a decrease to approximately 9 billion.

Relationship Between Current and Total Assets

Throughout the period, current assets consistently represent a substantial portion of total assets, generally ranging from 20% to 30%. The relative proportion appears to remain fairly stable despite the overall growth and fluctuations in both categories. The large increase in total assets in 2019 did not result in a proportional increase in current assets, suggesting a significant investment in non-current assets during that year.

The observed fluctuations, particularly the declines in 2015-2016 and the substantial increase in 2019, suggest potential shifts in the company’s investment strategy, operational performance, or capital structure. Further analysis, including examination of income statement and cash flow statement information, would be necessary to fully understand the drivers behind these changes.

Current liabilities exhibited a consistent upward trend from 2005 through 2023. Beginning at US$41,982 thousand in 2005, current liabilities increased to US$1,168,768 thousand in 2023, before decreasing slightly to US$1,188,142 thousand in 2024 and US$1,163,924 thousand in 2025. Total liabilities mirrored this pattern, increasing substantially over the period, with a particularly significant jump between 2018 and 2019, rising from US$824,179 thousand to US$3,421,578 thousand. This increase continued in subsequent years, reaching US$6,163,924 thousand in 2025. Total debt information is absent for the entire period. Shareholders’ equity also generally increased from 2005 to 2019, but experienced a substantial decrease in 2020, followed by fluctuations in subsequent years.

Current Liabilities Trend

The steady increase in current liabilities suggests a growing need for short-term financing to support operations. The slight decrease in the most recent two years may indicate improved working capital management or a shift in financing strategies, but requires further investigation.

Total Liabilities Trend

The dramatic increase in total liabilities, particularly after 2018, warrants close attention. This could be attributed to increased borrowing, the issuance of long-term debt, or changes in deferred revenue recognition. The substantial rise in 2019 is a key area for further analysis to understand its underlying causes.

Shareholders’ Equity Trend

While shareholders’ equity generally increased until 2019, the significant decline in 2020 is noteworthy. This decrease could be due to net losses, share repurchases, or dividend payments. The subsequent fluctuations suggest volatility in the company’s profitability and capital structure. The decrease in 2024 and 2025 may indicate continued challenges in maintaining equity levels.

Liabilities vs. Equity

From 2005 to 2018, shareholders’ equity generally exceeded total liabilities. However, this relationship reversed after 2019, with total liabilities significantly surpassing shareholders’ equity. This shift indicates a greater reliance on debt financing and a potentially higher level of financial risk.

The absence of total debt figures throughout the period limits a comprehensive assessment of the company’s leverage. The observed trends in current liabilities, total liabilities, and shareholders’ equity suggest a significant change in the company’s financial structure, particularly after 2018, moving towards greater debt reliance and increased financial risk. Further investigation into the specific components of these liabilities and the reasons for the equity decline is recommended.

The cash flow statement reveals significant fluctuations across the observed period. Overall, operating activities consistently generate positive cash flow, while investing activities generally represent cash outflows. Financing activities demonstrate a more volatile pattern, shifting between positive and negative cash flow depending on the year.

Operating Activities

Net cash provided by operating activities exhibits a strong upward trend from 2005 to 2015, increasing from US$77.431 million to US$683.316 million. A substantial decrease is then observed in 2016 to US$349.242 million, followed by a recovery and continued growth through 2023, peaking at US$2.105 billion. This suggests a period of strong operational performance and profitability driving cash generation, with a temporary disruption in 2016, and subsequent renewed growth. The sustained high levels in recent years indicate robust cash generation capabilities.

Investing Activities

Net cash used in investing activities is consistently negative throughout most of the period, indicating ongoing investments in assets. The magnitude of these outflows generally increases from 2005 to 2014, peaking at US$518.844 million. A notable shift occurs in 2015, with net cash *provided* by investing activities (US$326.806 million), likely due to asset sales or disposals. However, cash outflows resume in subsequent years, escalating significantly to US$946.009 million in 2022. The pattern suggests a strategy of consistent investment, punctuated by occasional asset divestitures. The recent increase in outflows may indicate accelerated investment in growth initiatives.

Financing Activities

Net cash flow from financing activities is highly variable. Positive cash inflows are observed in 2006 (US$147.296 million) and to a lesser extent in 2005 (US$5.666 million). However, the period from 2009 through 2015 demonstrates predominantly negative cash flow, reaching a substantial outflow of US$836.283 million in 2015. This suggests a period of debt repayment, share repurchases, or dividend payments. Negative cash flow continues through 2025, with outflows increasing in magnitude, reaching US$2.471 billion in the final year. This indicates a continued reliance on external financing or a significant return of capital to shareholders.

The combined effect of these trends suggests a company that historically funded growth through a combination of operating cash flow and external financing. The recent pattern of increasing investment and substantial negative financing cash flow warrants further investigation to understand the company’s long-term capital allocation strategy and funding sources.

The per share earnings figures demonstrate a generally positive trajectory over the observed period, though with notable fluctuations. Basic and diluted earnings per share (EPS) exhibited consistent growth from 2005 through 2015, followed by a significant decline in 2016, and a subsequent recovery and period of accelerated growth through 2023. No dividends were distributed during the analyzed timeframe.

Earnings Per Share (EPS) - Basic & Diluted

From 2005 to 2015, both basic and diluted EPS increased steadily, progressing from $0.03 to $0.31 and $0.30 respectively. This indicates a consistent improvement in profitability on a per-share basis. The year 2016 marked a substantial decrease in EPS, falling to $0.02 for both basic and diluted measures. This represents a significant disruption to the prior growth trend. Following 2016, EPS began to recover, with a period of strong growth observed from 2017 through 2023, reaching $1.12 and $1.11 respectively in 2023. The difference between basic and diluted EPS remained consistently minimal throughout the period.

Dividend Policy

The information indicates that no dividends were paid to shareholders during the period from 2005 to 2025. This suggests the company has consistently reinvested its earnings back into the business, potentially for growth initiatives or debt reduction.

The substantial decline in EPS in 2016 warrants further investigation to understand the underlying causes. The subsequent recovery and strong growth in later years suggest successful implementation of corrective measures or favorable market conditions. The absence of dividends throughout the period reflects a strategic decision to prioritize internal investment over direct shareholder returns.