Chipotle Mexican Grill Inc. (NYSE:CMG)

The common-size income statement reveals several noteworthy trends in the company’s financial performance between March 2021 and December 2025. Revenue composition has remained remarkably stable, with food and beverage revenue consistently representing over 98% of total revenue. A gradual decline in the percentage contribution of delivery service revenue is observed throughout the period, decreasing from 1.47% to 0.48%. Cost of goods sold, represented by food, beverage, and packaging costs, has fluctuated, generally decreasing from 30.01% to 30.17% before increasing to 30.05% in the final period. Labor costs also exhibited variability, peaking at 26.36% and generally trending downwards to 25.49% before a slight increase to 25.19%.

Restaurant Operating Costs

Restaurant operating costs, excluding depreciation and amortization, demonstrate a consistent and significant portion of revenue, ranging between 74.66% and 79.80%. A slight upward trend is visible in the earlier part of the period, followed by a stabilization and then a slight decrease towards the end of the observed timeframe. This suggests potential efficiencies or cost management initiatives implemented over time.

Gross Profit

Gross profit as a percentage of revenue shows considerable fluctuation. It initially increases from 22.32% to a peak of 27.47% before declining to 23.42% and then recovering to 24.49% in the final period. This volatility suggests sensitivity to changes in cost of goods sold and pricing strategies.

Operating Expenses

General and administrative expenses have generally decreased as a percentage of revenue, moving from 8.91% to 4.89%. Depreciation and amortization remained relatively stable, fluctuating between 2.81% and 3.62%. Pre-opening costs and impairment/closure costs also show a decreasing trend, indicating a potential stabilization of the company’s expansion and restructuring activities. These expense reductions contribute to improved operational efficiency.

Profitability

Income from operations demonstrates a positive trend overall, increasing from 9.27% to 18.25% before settling at 14.09%. Interest and other income (expense), net, has fluctuated, with periods of expense and income, but generally remained a small percentage of revenue. Income before income taxes follows a similar pattern to income from operations, peaking at 20.45% and ending at 14.53%. Net income as a percentage of revenue also shows an upward trend, increasing from 7.30% to 15.33% before decreasing to 11.09% in the final period. The provision for income taxes has fluctuated, generally aligning with changes in income before income taxes.

In summary, the company experienced fluctuating but generally improving profitability over the analyzed period. While revenue composition remained stable, the company demonstrated success in managing operating expenses, contributing to increased income from operations and net income. The volatility in gross profit suggests a need for continued monitoring of cost of goods sold and pricing strategies.