Chipotle Mexican Grill Inc. (NYSE:CMG)

The cash flow statements reveal a complex pattern of activity over the observed period. Net cash provided by operating activities demonstrates considerable fluctuation, peaking in late 2021 and again in mid-2023, but generally remaining positive throughout. Investing and financing activities, however, consistently represent cash outflows, with significant variations in magnitude.

Operating Activities

Net income exhibits growth from 2021 through 2023, with a dip in the fourth quarter of 2021 and a subsequent rebound. Depreciation and amortization consistently contributes a substantial positive adjustment to net income. Deferred income tax provisions show volatility, swinging between positive and negative values, with a particularly large negative impact in late 2022 and late 2025. Stock-based compensation consistently adds to operating cash flow, with increases observed over time. Significant adjustments related to changes in operating assets and liabilities are present, notably a large positive adjustment in 2021 and a substantial negative adjustment in late 2023 and late 2025. Overall, operating cash flow is strong, though subject to quarterly variations.

Investing Activities

Purchases of property, plant, and equipment (PP&E) and investments consistently represent significant cash outflows. Maturities of investments provide a partial offset, particularly in 2021, 2022, and 2023. A notable increase in proceeds from the sale of equipment is observed in late 2024. The net effect is a consistent drain on cash from investing activities, with a particularly large outflow in late 2022 and late 2025, driven by substantial investment purchases.

Financing Activities

Repurchase of common stock is a dominant feature of financing activities, consistently representing a large cash outflow. Tax withholding related to stock-based compensation also contributes to cash outflow. Other financing activities are relatively small and fluctuate in sign. The overall pattern indicates a significant return of capital to shareholders, resulting in substantial net cash used in financing activities throughout the period. The outflow is particularly pronounced in late 2024 and late 2025.

Cash Flow Trends

The period between March 2021 and June 2023 generally shows positive net change in cash, though with considerable quarterly variation. However, from September 2023 onward, the net change in cash becomes increasingly negative, culminating in substantial decreases in late 2025. This shift is primarily attributable to increased cash outflows from both investing and financing activities, coupled with a decline in operating cash flow in the final quarters. The exchange rate changes have a relatively minor impact on overall cash position.

In summary, the company generates substantial cash from operations, but consistently reinvests and returns capital to shareholders, resulting in a fluctuating, but generally positive, cash position until late 2023. The latter part of the observed period demonstrates a trend toward decreasing cash reserves, driven by increased investment and shareholder returns.