Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Chipotle Mexican Grill Inc., profitability ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The profitability metrics demonstrate a consistent improvement from 2021 through 2024, followed by a slight moderation in 2025. Generally, the company exhibits strong and increasing profitability across all measured ratios during the initial period.
- Gross Profit Margin
- The gross profit margin experienced an upward trend from 22.62% in 2021 to 26.67% in 2024, indicating increasing efficiency in managing production costs relative to revenue. A slight decrease to 25.38% is observed in 2025, suggesting potential pressures on cost of goods sold or pricing.
- Operating Profit Margin
- The operating profit margin shows a robust increase from 10.67% in 2021 to 16.94% in 2024. This suggests effective control of operating expenses alongside revenue growth. The margin then decreased slightly to 16.23% in 2025, potentially due to increased operating costs.
- Net Profit Margin
- Similar to the gross and operating margins, the net profit margin increased steadily from 8.65% in 2021 to 13.56% in 2024, reflecting improved overall profitability. A modest decline to 12.88% in 2025 is noted, indicating a potential impact from factors beyond core operations, such as taxes or interest expenses.
- Return on Equity (ROE)
- Return on equity exhibited substantial growth, rising from 28.42% in 2021 to 41.97% in 2024. This indicates an increasing ability to generate profits from shareholder investments. A significant jump to 54.26% in 2025 suggests a considerable improvement in equity utilization, though the reason for this large increase warrants further investigation.
- Return on Assets (ROA)
- The return on assets followed a similar positive trajectory, increasing from 9.81% in 2021 to 16.67% in 2024. This demonstrates improved efficiency in utilizing assets to generate earnings. The ROA continued to increase, reaching 17.07% in 2025, indicating sustained asset efficiency.
Overall, the period from 2021 to 2024 demonstrates a clear trend of improving profitability. While 2025 shows a slight moderation in margins, the return on equity and assets continue to improve, suggesting continued strong financial performance. The increases in ROE in 2025 are particularly noteworthy and may warrant further investigation to understand the underlying drivers.
Return on Sales
Return on Investment
Gross Profit Margin
Chipotle Mexican Grill Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited an overall upward trend between 2021 and 2024, followed by a slight decrease in the most recent year presented. This indicates improving profitability from sales during the initial period, with a moderation of that improvement in the latest period.
- Gross Profit Margin Trend
- In 2021, the gross profit margin stood at 22.62%. This figure increased to 23.88% in 2022, representing a 0.86 percentage point improvement. The rate of increase accelerated in 2023, reaching 26.20%, a further increase of 2.32 percentage points. The margin continued to climb in 2024, reaching 26.67%, a 0.47 percentage point increase. However, in 2025, the gross profit margin experienced a slight decline to 25.38%, representing a decrease of 1.29 percentage points.
The consistent growth in gross profit margin from 2021 to 2024 suggests effective cost management relative to revenue, or potentially increased pricing power. The decrease observed in 2025 warrants further investigation to determine the underlying causes, such as increased cost of goods sold, changes in sales mix, or promotional activity.
- Relationship to Revenue
- Revenue consistently increased throughout the period, moving from US$7,547,061 thousand in 2021 to US$11,925,601 thousand in 2025. The simultaneous increase in gross profit and revenue demonstrates overall business growth. However, the slight dip in gross profit margin in 2025, despite continued revenue growth, suggests that the cost of generating that revenue may have increased disproportionately.
The gross profit figures themselves demonstrate a consistent upward trajectory, mirroring the revenue trend. This reinforces the observation of overall business expansion. The interplay between revenue and gross profit margin is a key indicator of the company’s operational efficiency and pricing strategies.
Operating Profit Margin
Chipotle Mexican Grill Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin demonstrates a consistent upward trend from 2021 to 2024, followed by a slight decrease in the most recent year presented. This indicates improving operational efficiency and profitability over the initial period, with a stabilization and minor pullback in the latest reporting period.
- Operating Profit Margin Trend
- The operating profit margin increased from 10.67% in 2021 to 13.44% in 2022, representing a substantial improvement in profitability. This positive trend continued through 2023, reaching 15.78%, and peaked in 2024 at 16.94%. However, in 2025, the margin experienced a slight decline to 16.23%, suggesting potential pressures on operational profitability.
The growth in income from operations consistently outpaced the growth in revenue from 2021 to 2024, driving the expansion of the operating profit margin. While both income from operations and revenue continued to increase in 2025, the rate of increase in income from operations slowed relative to revenue, contributing to the marginal decrease in the operating profit margin.
- Income from Operations and Revenue Relationship
- From 2021 to 2024, income from operations increased by 44.7%, 75.8%, and 56.8% respectively, while revenue increased by 14.4%, 19.8%, and 14.6% over the same periods. This disparity suggests effective cost management and/or pricing strategies. In 2025, income from operations increased by 2.4%, while revenue increased by 3.8%, indicating a shift in this dynamic.
The stabilization of the operating profit margin in 2025 warrants further investigation. Potential factors contributing to this outcome could include increased operating expenses, changes in product mix, or heightened competitive pressures. The slight decrease, while not substantial, signals a potential inflection point in the company’s profitability trajectory.
Net Profit Margin
Chipotle Mexican Grill Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin demonstrates a clear upward trend from 2021 to 2024, followed by a slight decrease in the most recent year presented. This indicates improving profitability over the initial period, with a leveling off and minor contraction in the latest reporting period.
- Net Profit Margin Trend
- The net profit margin increased consistently from 8.65% in 2021 to 13.56% in 2024. This represents a substantial improvement in the proportion of revenue converted into profit. However, in 2025, the net profit margin experienced a slight decline to 12.88%, suggesting potential pressures on profitability.
The growth in net income from US$652,984 thousand to US$1,534,110 thousand between 2021 and 2024 significantly outpaced the growth in revenue, which rose from US$7,547,061 thousand to US$11,313,853 thousand over the same period. This differential contributed to the observed increase in the net profit margin. The relatively stable net income in 2025, coupled with continued revenue growth, explains the marginal decrease in the net profit margin for that year.
- Revenue and Net Income Relationship
- The correlation between revenue and net income is positive, as expected. However, the rate of increase in net income slowed in 2025, while revenue continued to grow, resulting in a lower net profit margin. This suggests that while the company is still increasing sales, it is experiencing increased costs or reduced pricing power.
The peak net profit margin of 13.56% in 2024 represents the highest profitability level within the observed timeframe. The subsequent decrease in 2025, though modest, warrants further investigation to determine the underlying causes and assess whether this represents a temporary fluctuation or the beginning of a more sustained trend.
Return on Equity (ROE)
Chipotle Mexican Grill Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Shareholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROE, Sector | ||||||
| Consumer Services | ||||||
| ROE, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) demonstrates a consistent upward trajectory over the observed period. Net income increased steadily from 2021 to 2024, with a slight increase from 2024 to 2025. Shareholders’ equity exhibited growth from 2021 to 2024, followed by a decrease in 2025. These movements in the underlying components significantly influenced the ROE calculation.
- ROE Trend
- The ROE began at 28.42% in 2021 and increased to 37.97% in 2022, representing a substantial gain. Further increases were observed in subsequent years, reaching 40.13% in 2023 and 41.97% in 2024. A significant jump to 54.26% occurred in 2025. This indicates an improving efficiency in generating profits from shareholder investments.
- Net Income Analysis
- Net income experienced consistent growth from US$652,984 thousand in 2021 to US$1,534,110 thousand in 2024. The increase from 2024 to 2025 was minimal, at US$1,535,761 thousand. This sustained profitability contributed positively to the overall ROE.
- Shareholders’ Equity Analysis
- Shareholders’ equity increased from US$2,297,374 thousand in 2021 to US$3,655,546 thousand in 2024. However, a notable decrease to US$2,830,607 thousand occurred in 2025. While the initial growth in equity provided a larger base for generating returns, the subsequent decline in 2025, coupled with stable net income, amplified the ROE increase.
- Combined Effect
- The substantial increase in ROE in 2025 is primarily attributable to the decrease in shareholders’ equity, despite only a marginal increase in net income. This suggests that the company became more efficient in utilizing its equity base to generate profits in that year, or that actions were taken to reduce equity, such as share buybacks or dividend distributions, which would concentrate earnings among fewer shares.
Return on Assets (ROA)
Chipotle Mexican Grill Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROA, Sector | ||||||
| Consumer Services | ||||||
| ROA, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) demonstrates a consistent upward trajectory over the five-year period. Net income also increased consistently, though at a decreasing rate in the final two years, while total assets grew steadily throughout the period.
- Return on Assets (ROA)
- The ROA began at 9.81% in 2021 and increased to 17.07% in 2025. This represents a substantial improvement in the company’s efficiency in utilizing its assets to generate profit.
- The largest single-year increase in ROA occurred between 2022 and 2023, rising from 12.98% to 15.27%. The rate of increase slowed in subsequent years, with gains of 1.40% (2023-2024) and 0.40% (2024-2025).
- Net Income Trend
- Net income increased from US$652,984 thousand in 2021 to US$1,535,761 thousand in 2025. While consistently positive, the year-over-year growth rate decelerated. The increase from 2021 to 2022 was US$246,117 thousand, while the increase from 2024 to 2025 was only US$1,651 thousand.
- Total Assets Trend
- Total assets increased steadily from US$6,652,958 thousand in 2021 to US$8,994,531 thousand in 2025. The largest absolute increase in total assets occurred between 2023 and 2024, with an increase of US$1,159,998 thousand. The increase from 2024 to 2025 was a decrease of US$210,003 thousand.
The continued growth in ROA, despite a slowing rate of net income growth and a slight decrease in total assets in the final year, suggests increasing asset efficiency. The decrease in total assets in 2025, coupled with a continued ROA increase, warrants further investigation to determine the underlying cause and potential sustainability.