Chipotle Mexican Grill Inc. (NYSE:CMG)

The financial performance, as indicated by the income statement, demonstrates a generally positive trajectory over the analyzed period, with notable fluctuations and a strong finish. Revenue exhibited consistent growth from March 2021 through June 2023, followed by some stabilization and modest growth in subsequent quarters. While revenue increased overall, the rate of growth varied, with particularly strong gains observed in the periods ending June 2022 and June 2023. Cost of revenue, encompassing food, beverage, packaging, labor, occupancy, and other operating costs, increased in tandem with revenue, impacting gross profit margins. Net income also generally increased, though it experienced volatility, particularly in later periods.

Revenue Analysis

Total revenue increased from US$1,741.575 million in March 2021 to US$3,063.393 million in March 2025. The contribution of delivery service revenue remained relatively stable, representing a smaller portion of overall revenue, fluctuating between approximately 1% and 2% of total revenue. The primary driver of revenue growth was food and beverage sales. A slight dip in revenue was observed in December 2022, but it recovered in subsequent quarters.

Cost of Revenue Trends

Restaurant operating costs, excluding depreciation and amortization, consistently represented the largest expense category, increasing from US$1,352.819 million in March 2021 to US$2,284.739 million in December 2025. Labor costs also showed a significant upward trend, increasing substantially over the period. Food, beverage, and packaging costs also increased, though at a slightly slower pace than labor. The combined effect of these increasing costs put pressure on gross profit margins.

Profitability Analysis

Gross profit increased from US$388.756 million in March 2021 to US$838.230 million in March 2025, but the rate of increase was not consistent. Gross profit margins fluctuated, peaking in June 2022 at approximately 29.1% of revenue, and declining to approximately 22.8% by December 2025. Net income followed a similar pattern, increasing from US$127.101 million in March 2021 to US$436.127 million in March 2025, but with periods of decline. The provision for income taxes also increased significantly over the period, impacting net income.

Operating Expenses

General and administrative expenses remained relatively stable for the first several periods, but increased notably in March 2023 and beyond. Depreciation and amortization expenses also increased steadily. Pre-opening costs and impairment, closure costs, and asset disposals exhibited fluctuations, with significant increases in certain quarters, potentially indicating strategic adjustments or restructuring activities. These operating expenses collectively impacted income from operations.

In summary, the company experienced substantial revenue growth over the analyzed period, but also faced increasing costs, particularly in labor and food. While net income generally increased, profitability margins experienced some compression in later periods. The fluctuations in certain expense categories suggest potential strategic initiatives or external factors influencing the company’s financial performance.