Common-Size Income Statement
Chipotle Mexican Grill Inc., common-size consolidated income statement
Based on: 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), 10-K (reporting date: 2020-12-31).
The analysis reveals several notable trends in the financial performance over the five-year period. The proportion of food and beverage revenue relative to total revenue has shown a gradual increase, rising from 98.93% to 99.41%, while delivery service revenue, as a percentage of total revenue, has declined consistently from 1.07% to 0.59%. This suggests a shift in sales composition with a stronger reliance on in-restaurant sales compared to delivery services.
- Cost Structure
- Food, beverage, and packaging costs as a percentage of revenue have experienced a steady decrease from -32.3% to -29.83%, indicating improved cost control or better pricing power. Labor costs have also declined from -26.62% to -24.66%, reflecting enhanced operational efficiency or labor management. Occupancy costs followed a similar downward trend, reducing from -6.48% to -4.98%. Other operating costs decreased significantly from -17.21% to -13.86%. Collectively, total restaurant operating costs exclusive of depreciation and amortization fell markedly from -82.6% to -73.33%, pointing to a stronger cost discipline over time.
- Profitability
- Gross profit margin steadily improved from 17.4% to 26.67%, reflecting the beneficial impact of lowering costs and favorable revenue mix changes. General and administrative expenses as a percentage of revenue fluctuated but overall decreased slightly from -7.79% to -6.16%, supporting operating leverage gains. Depreciation and amortization costs contracted modestly from -3.99% to -2.96%, which might be associated with capital expenditure patterns or asset management. Pre-opening and impairment/closure costs remained relatively stable and low.
- Operating and Net Income
- Income from operations rose significantly from 4.85% to 16.94%, indicating robust operational improvement and profitability enhancement. Interest and other income showed consistent growth, from 0.06% to 0.83%, contributing positively to overall earnings. Income before income taxes increased substantially from 4.91% to 17.77%, aligned with operating performance.
- Taxation and Net Income
- The provision for income taxes shifted from a small positive effect (1.04%) in 2020 to an increasing tax burden in subsequent years (up to -4.21%), reflecting higher taxable income or changes in tax rates and policies. Despite this, net income as a percentage of revenue improved markedly from 5.94% to 13.56%, underscoring strong bottom-line growth and effective expense management.
Overall, the data reflects a trend of improving operational efficiencies, cost management, and profitability. The company demonstrates a stronger reliance on core food and beverage revenue with a concurrent reduction in delivery sales, effective containment of costs across major categories, and sustained growth in earnings at various levels. This performance trajectory suggests a healthy financial position and successful execution of strategies aimed at enhancing margins and profitability.