Stock Analysis on Net

Chipotle Mexican Grill Inc. (NYSE:CMG)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Chipotle Mexican Grill Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,403,018 1,025,991 788,934 613,981 515,617
Invested capital2 6,006,837 5,396,406 5,496,598 4,937,915 4,227,370
Performance Ratio
ROIC3 23.36% 19.01% 14.35% 12.43% 12.20%
Benchmarks
ROIC, Competitors4
Airbnb Inc. 28.83% 30.22% 7.96% -98.14%
Booking Holdings Inc. 32.92% 21.73% 4.47% 4.60% 46.12%
McDonald’s Corp. 18.51% 15.69% 17.77% 13.16% 17.62%
Starbucks Corp. 20.76% 18.24% 19.53% 6.42% 11.14%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,403,018 ÷ 6,006,837 = 23.36%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Chipotle Mexican Grill Inc. ROIC improved from 2021 to 2022 and from 2022 to 2023.

Decomposition of ROIC

Chipotle Mexican Grill Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 23.36% = 18.74% × 1.65 × 75.62%
Dec 31, 2022 19.01% = 16.00% × 1.61 × 74.05%
Dec 31, 2021 14.35% = 13.23% × 1.38 × 78.72%
Dec 31, 2020 12.43% = 8.03% × 1.22 × 127.06%
Dec 31, 2019 12.20% = 11.18% × 1.33 × 82.17%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Chipotle Mexican Grill Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,403,018 1,025,991 788,934 613,981 515,617
Add: Cash operating taxes2 452,292 359,479 213,319 (130,767) 111,920
Net operating profit before taxes (NOPBT) 1,855,310 1,385,469 1,002,252 483,214 627,537
 
Revenue 9,871,649 8,634,652 7,547,061 5,984,634 5,586,369
Add: Increase (decrease) in unearned revenue 26,609 26,720 28,601 32,555 24,721
Adjusted revenue 9,898,258 8,661,372 7,575,662 6,017,189 5,611,090
Profitability Ratio
OPM3 18.74% 16.00% 13.23% 8.03% 11.18%
Benchmarks
OPM, Competitors4
Airbnb Inc. 17.09% 24.64% 9.31% -151.42%
Booking Holdings Inc. 25.31% 24.15% 13.04% 15.18% 40.35%
McDonald’s Corp. 48.59% 40.79% 46.68% 41.21% 45.99%
Starbucks Corp. 17.05% 14.97% 20.82% 7.99% 17.94%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × 1,855,310 ÷ 9,898,258 = 18.74%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Chipotle Mexican Grill Inc. OPM improved from 2021 to 2022 and from 2022 to 2023.

Turnover of Capital (TO)

Chipotle Mexican Grill Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Revenue 9,871,649 8,634,652 7,547,061 5,984,634 5,586,369
Add: Increase (decrease) in unearned revenue 26,609 26,720 28,601 32,555 24,721
Adjusted revenue 9,898,258 8,661,372 7,575,662 6,017,189 5,611,090
 
Invested capital1 6,006,837 5,396,406 5,496,598 4,937,915 4,227,370
Efficiency Ratio
TO2 1.65 1.61 1.38 1.22 1.33
Benchmarks
TO, Competitors3
Airbnb Inc. 1.74 1.27 1.11 0.65
Booking Holdings Inc. 1.87 1.25 0.73 0.47 1.37
McDonald’s Corp. 0.51 0.51 0.49 0.41 0.49
Starbucks Corp. 1.62 1.57 1.23 1.03 1.30

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 Invested capital. See details »

2 2023 Calculation
TO = Adjusted revenue ÷ Invested capital
= 9,898,258 ÷ 6,006,837 = 1.65

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Chipotle Mexican Grill Inc. TO improved from 2021 to 2022 and from 2022 to 2023.

Effective Cash Tax Rate (CTR)

Chipotle Mexican Grill Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,403,018 1,025,991 788,934 613,981 515,617
Add: Cash operating taxes2 452,292 359,479 213,319 (130,767) 111,920
Net operating profit before taxes (NOPBT) 1,855,310 1,385,469 1,002,252 483,214 627,537
Tax Rate
CTR3 24.38% 25.95% 21.28% -27.06% 17.83%
Benchmarks
CTR, Competitors4
Airbnb Inc. 3.21% 3.19% 23.04%
Booking Holdings Inc. 30.52% 28.16% 53.06% 35.06% 16.37%
McDonald’s Corp. 25.22% 24.66% 21.80% 22.33% 22.57%
Starbucks Corp. 24.73% 22.36% 23.58% 21.57% 52.35%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 452,292 ÷ 1,855,310 = 24.38%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Chipotle Mexican Grill Inc. CTR increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.