Chipotle Mexican Grill Inc. (NYSE:CMG)

The financial performance presented demonstrates a consistent pattern of growth in revenue and net income over the five-year period. However, the rate of growth appears to be moderating in the most recent years. A detailed examination of the income statement reveals specific trends in revenue composition and cost structures.

Revenue Analysis

Total revenue exhibits a strong upward trend, increasing from US$7,547.1 million in 2021 to US$11,925.6 million in 2025. The primary driver of this growth is food and beverage revenue, which consistently represents the vast majority of total revenue. While delivery service revenue also contributes, its growth rate is decelerating and its overall contribution remains relatively small. The rate of revenue growth slows between 2023 and 2025, suggesting potential market saturation or increased competition.

Cost of Goods Sold and Operating Expenses

Restaurant operating costs, excluding depreciation and amortization, consistently increase year-over-year, mirroring the growth in revenue. The increases in food, beverage, and packaging costs, labor costs, occupancy costs, and other operating costs are all substantial. While revenue is growing, the rate of increase in operating costs is, at times, higher, potentially impacting profitability. Labor costs show a particularly strong increase throughout the period.

Profitability Analysis

Gross profit demonstrates a positive trend, increasing from US$1,707.0 million in 2021 to US$3,026.2 million in 2025. However, the growth rate of gross profit slows significantly between 2023 and 2025, aligning with the deceleration in revenue growth. Income from operations also follows a similar pattern, increasing substantially but with a reduced rate of growth in the later years. Net income shows consistent growth, rising from US$653.0 million in 2021 to US$1,535.8 million in 2025. The provision for income taxes also increases over the period, consistent with higher income before taxes.

Other Income and Expenses

Interest and other income, net, fluctuates over the period, with a notable increase in 2023 and 2024 before decreasing slightly in 2025. Pre-opening costs and impairment, closure costs, and asset disposals also increase over the period, although these amounts are relatively small compared to overall revenue and operating costs. General and administrative expenses also show an increasing trend, but at a slower rate than restaurant operating costs.

In summary, the financial performance indicates a growing business, but the slowing growth rates in revenue and profitability in the most recent years warrant further investigation. The increasing operating costs, particularly labor, require close monitoring to ensure continued profitability.