Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Chipotle Mexican Grill Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. Federal	314,757)	246,210)	156,447)	(204,063)	57,020)
U.S. State	85,355)	79,041)	15,351)	32,684)	20,499)
Foreign	1,162)	374)	338)	1,044)	646)
Current tax	401,274)	325,625)	172,136)	(170,335)	78,165)
U.S. Federal	(7,992)	(23,502)	(33,004)	120,066)	27,231)
U.S. State	(1,532)	(19,940)	20,404)	(11,507)	2,740)
Foreign	(7,606)	3,771)	(7,229)	(7,158)	(2,685)
Deferred tax	(17,130)	(39,671)	(19,829)	101,401)	27,286)
Valuation allowance	7,625)	(3,524)	7,472)	6,949)	2,676)
Provision (benefit) for income taxes	391,769)	282,430)	159,779)	(61,985)	108,127)

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).

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Item	Description	The company
Current tax	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Chipotle Mexican Grill Inc. current tax increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Chipotle Mexican Grill Inc. deferred tax decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Provision (benefit) for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Chipotle Mexican Grill Inc. provision (benefit) for income taxes increased from 2021 to 2022 and from 2022 to 2023.

Chipotle Mexican Grill Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Statutory U.S. federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State income tax, net of related federal income tax benefit	4.00%	3.80%	3.50%	4.20%	4.10%
Federal tax credits	-1.00%	-1.00%	-1.60%	-3.50%	-1.70%
Executive compensation disallowed	0.80%	0.80%	2.90%	2.90%	2.00%
Meals and entertainment	0.00%	0.00%	0.00%	0.10%	0.10%
Enhanced deduction for food donation	0.00%	0.00%	0.00%	-0.10%	0.00%
Valuation allowance	0.30%	0.20%	0.30%	1.60%	0.50%
Uncertain tax position reserves	0.40%	0.30%	0.00%	0.00%	0.00%
Other	0.20%	0.60%	0.00%	1.80%	0.80%
Return to provision and other discrete items	-0.20%	-0.10%	0.10%	2.10%	0.10%
Equity compensation related adjustments	-1.30%	-1.70%	-4.70%	-13.50%	-3.30%
Federal net operating loss	0.00%	0.00%	-1.80%	-37.70%	0.00%
Effective income tax rate	24.20%	23.90%	19.70%	-21.10%	23.60%

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).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Chipotle Mexican Grill Inc. effective income tax rate increased from 2021 to 2022 and from 2022 to 2023.

Chipotle Mexican Grill Inc., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gift card liability	18,101)	15,893)	9,699)	3,849)	6,185)
Capitalized transaction costs	323)	323)	324)	324)	323)
Stock-based compensation and other employee benefits	50,954)	45,129)	45,261)	34,709)	41,270)
Foreign net operating loss carry-forwards	32,252)	24,799)	27,446)	21,598)	13,796)
State credits	1,838)	3,151)	3,595)	4,452)	4,170)
Operating lease liabilities	1,038,911)	962,815)	909,528)	812,699)	741,120)
Allowances, reserves and other	12,870)	15,688)	24,179)	25,981)	22,973)
Capitalized research costs	25,990)	17,415)	—)	—)	—)
Prepaid assets and other	6,637)	4,685)	—)	350)	—)
State net operating loss carry-forwards	4,332)	4,832)	1,568)	22,482)	—)
Deferred income tax asset, gross	1,192,208)	1,094,730)	1,021,600)	926,444)	829,837)
Valuation allowance	(34,722)	(27,097)	(30,621)	(23,149)	(16,200)
Deferred income tax asset	1,157,486)	1,067,633)	990,979)	903,295)	813,637)
Leasehold improvements, property and equipment, net	(272,017)	(263,444)	(279,586)	(298,225)	(162,291)
Goodwill and other assets	(1,743)	(1,754)	(1,728)	(1,628)	(1,537)
Prepaid assets and other	—)	—)	(106)	—)	(1,290)
Operating lease assets	(972,835)	(901,058)	(851,324)	(752,864)	(686,333)
Deferred income tax liability	(1,246,595)	(1,166,256)	(1,132,744)	(1,052,717)	(851,451)
Deferred income tax assets (liabilities)	(89,109)	(98,623)	(141,765)	(149,422)	(37,814)

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).

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Item	Description	The company
Deferred income tax asset, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Chipotle Mexican Grill Inc. deferred income tax asset, gross increased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax asset	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Chipotle Mexican Grill Inc. deferred income tax asset increased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Chipotle Mexican Grill Inc. deferred income tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Chipotle Mexican Grill Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred income tax liabilities	89,109)	98,623)	141,765)	149,422)	37,814)

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).

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Item	Description	The company
Deferred income tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Chipotle Mexican Grill Inc. deferred income tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Chipotle Mexican Grill Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Liabilities
Total liabilities (as reported)	4,982,155)	4,559,481)	4,355,584)	3,962,761)	3,421,578)
Less: Noncurrent deferred tax liabilities, net	89,109)	98,623)	141,765)	149,422)	37,814)
Total liabilities (adjusted)	4,893,046)	4,460,858)	4,213,819)	3,813,339)	3,383,764)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	3,062,207)	2,368,023)	2,297,374)	2,020,135)	1,683,026)
Less: Net deferred tax assets (liabilities)	(89,109)	(98,623)	(141,765)	(149,422)	(37,814)
Shareholders’ equity (adjusted)	3,151,316)	2,466,646)	2,439,139)	2,169,557)	1,720,840)
Adjustment to Net Income
Net income (as reported)	1,228,737)	899,101)	652,984)	355,766)	350,158)
Add: Deferred income tax expense (benefit)	(17,130)	(39,671)	(19,829)	101,401)	27,286)
Net income (adjusted)	1,211,607)	859,430)	633,155)	457,167)	377,444)

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).

Chipotle Mexican Grill Inc., Financial Data: Reported vs. Adjusted

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Chipotle Mexican Grill Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	12.45%	10.41%	8.65%	5.94%	6.27%
Adjusted net profit margin	12.27%	9.95%	8.39%	7.64%	6.76%
Financial Leverage
Reported financial leverage	2.63	2.93	2.90	2.96	3.03
Adjusted financial leverage	2.55	2.81	2.73	2.76	2.97
Return on Equity (ROE)
Reported ROE	40.13%	37.97%	28.42%	17.61%	20.81%
Adjusted ROE	38.45%	34.84%	25.96%	21.07%	21.93%
Return on Assets (ROA)
Reported ROA	15.27%	12.98%	9.81%	5.95%	6.86%
Adjusted ROA	15.06%	12.41%	9.52%	7.64%	7.39%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Chipotle Mexican Grill Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Chipotle Mexican Grill Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Chipotle Mexican Grill Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Chipotle Mexican Grill Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Chipotle Mexican Grill Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,228,737)	899,101)	652,984)	355,766)	350,158)
Revenue	9,871,649)	8,634,652)	7,547,061)	5,984,634)	5,586,369)
Profitability Ratio
Net profit margin¹	12.45%	10.41%	8.65%	5.94%	6.27%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,211,607)	859,430)	633,155)	457,167)	377,444)
Revenue	9,871,649)	8,634,652)	7,547,061)	5,984,634)	5,586,369)
Profitability Ratio
Adjusted net profit margin²	12.27%	9.95%	8.39%	7.64%	6.76%

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).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,228,737 ÷ 9,871,649 = 12.45%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 1,211,607 ÷ 9,871,649 = 12.27%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Chipotle Mexican Grill Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	8,044,362)	6,927,504)	6,652,958)	5,982,896)	5,104,604)
Shareholders’ equity	3,062,207)	2,368,023)	2,297,374)	2,020,135)	1,683,026)
Solvency Ratio
Financial leverage¹	2.63	2.93	2.90	2.96	3.03
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets	8,044,362)	6,927,504)	6,652,958)	5,982,896)	5,104,604)
Adjusted shareholders’ equity	3,151,316)	2,466,646)	2,439,139)	2,169,557)	1,720,840)
Solvency Ratio
Adjusted financial leverage²	2.55	2.81	2.73	2.76	2.97

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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 8,044,362 ÷ 3,062,207 = 2.63

² Adjusted financial leverage = Total assets ÷ Adjusted shareholders’ equity
= 8,044,362 ÷ 3,151,316 = 2.55

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Chipotle Mexican Grill Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,228,737)	899,101)	652,984)	355,766)	350,158)
Shareholders’ equity	3,062,207)	2,368,023)	2,297,374)	2,020,135)	1,683,026)
Profitability Ratio
ROE¹	40.13%	37.97%	28.42%	17.61%	20.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,211,607)	859,430)	633,155)	457,167)	377,444)
Adjusted shareholders’ equity	3,151,316)	2,466,646)	2,439,139)	2,169,557)	1,720,840)
Profitability Ratio
Adjusted ROE²	38.45%	34.84%	25.96%	21.07%	21.93%

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).

2023 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,228,737 ÷ 3,062,207 = 40.13%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 1,211,607 ÷ 3,151,316 = 38.45%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Chipotle Mexican Grill Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,228,737)	899,101)	652,984)	355,766)	350,158)
Total assets	8,044,362)	6,927,504)	6,652,958)	5,982,896)	5,104,604)
Profitability Ratio
ROA¹	15.27%	12.98%	9.81%	5.95%	6.86%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	1,211,607)	859,430)	633,155)	457,167)	377,444)
Total assets	8,044,362)	6,927,504)	6,652,958)	5,982,896)	5,104,604)
Profitability Ratio
Adjusted ROA²	15.06%	12.41%	9.52%	7.64%	7.39%

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).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,228,737 ÷ 8,044,362 = 15.27%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,211,607 ÷ 8,044,362 = 15.06%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Chipotle Mexican Grill Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Chipotle Mexican Grill Inc. (NYSE:CMG)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Chipotle Mexican Grill Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Chipotle Mexican Grill Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)