Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Chipotle Mexican Grill Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	212,813)	210,695)	197,646)	184,566)	163,161)
Workers’ compensation liability	44,266)	35,242)	30,520)	27,531)	27,456)
Accrued payroll, bonuses and taxes	177,471)	195,660)	170,251)	118,638)	107,799)
Other accrued payroll and benefits	28,389)	31,011)	26,766)	24,287)	27,150)
Accrued payroll and benefits	250,126)	261,913)	227,537)	170,456)	162,405)
Sales and use tax payable	47,525)	47,206)	42,071)	35,567)	32,004)
General, product and automobile insurance reserves	39,149)	34,404)	30,169)	29,544)	48,098)
Other accrued liabilities	95,774)	98,137)	75,448)	82,428)	92,950)
Accrued liabilities	182,448)	179,747)	147,688)	147,539)	173,052)
Unearned revenue	240,375)	238,577)	209,680)	183,071)	156,351)
Current operating lease liabilities	302,380)	277,836)	248,074)	236,248)	218,713)
Current liabilities	1,188,142)	1,168,768)	1,030,625)	921,880)	873,682)
Long-term operating lease liabilities	4,773,434)	4,262,782)	3,803,551)	3,495,162)	3,301,601)
Deferred income tax liabilities	125,674)	46,208)	89,109)	98,623)	141,765)
Other liabilities	76,674)	71,070)	58,870)	43,816)	38,536)
Long-term liabilities	4,975,782)	4,380,060)	3,951,530)	3,637,601)	3,481,902)
Total liabilities	6,163,924)	5,548,828)	4,982,155)	4,559,481)	4,355,584)
Common stock, $0.01 par value	13,044)	13,586)	375)	373)	371)
Additional paid-in capital	2,204,944)	2,078,010)	1,956,160)	1,829,304)	1,729,312)
Treasury stock, at cost	—)	—)	(4,944,656)	(4,282,014)	(3,356,102)
Accumulated other comprehensive loss	(7,289)	(10,282)	(6,657)	(7,888)	(5,354)
Retained earnings	619,908)	1,574,232)	6,056,985)	4,828,248)	3,929,147)
Shareholders’ equity	2,830,607)	3,655,546)	3,062,207)	2,368,023)	2,297,374)
Total liabilities and shareholders’ equity	8,994,531)	9,204,374)	8,044,362)	6,927,504)	6,652,958)

Based on: 10-K (reporting date: 2025-12-31), 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).

Overall, the liabilities of the company demonstrate a consistent upward trend from 2021 through 2025, increasing from US$4.36 billion to US$6.16 billion. This growth is primarily driven by increases in long-term liabilities. Shareholders’ equity exhibits more volatility, increasing initially but declining in the later years of the period. Total liabilities and shareholders’ equity also increased overall, but with a notable decrease in the most recent year.

Current Liabilities: Current liabilities generally increased over the period, rising from US$873.7 million in 2021 to US$1.19 billion in 2025. The most significant components of current liabilities, current operating lease liabilities and unearned revenue, both contributed to this increase. Accrued payroll and benefits also saw a substantial rise between 2021 and 2023, before decreasing slightly in 2024 and 2025. Sales and use tax payable also showed consistent growth.
Long-Term Liabilities: Long-term liabilities experienced substantial growth throughout the period, increasing from US$3.48 billion in 2021 to US$4.98 billion in 2025. The primary driver of this increase is the growth in long-term operating lease liabilities, which more than doubled over the five-year period. Deferred income tax liabilities fluctuated, decreasing significantly between 2021 and 2024 before increasing in 2025. Other liabilities also showed a moderate increase.
Shareholders’ Equity: Shareholders’ equity increased from US$2.30 billion in 2021 to US$3.06 billion in 2023, but then decreased significantly to US$2.83 billion in 2025. This decline is largely attributable to a substantial decrease in retained earnings, which fell from US$3.93 billion in 2021 to US$619.9 million in 2025. Treasury stock increased significantly between 2021 and 2023, and remained at a high level through 2025. Common stock and additional paid-in capital both increased over the period, but these increases were not sufficient to offset the decline in retained earnings and the increase in treasury stock.
Specific Accrued Liabilities: Accrued payroll, bonuses and taxes experienced a significant increase between 2021 and 2023, rising from US$107.8 million to US$170.3 million, before decreasing to US$177.5 million in 2025. Workers’ compensation liability also showed a consistent increase, rising from US$27.5 million in 2021 to US$44.3 million in 2025. Other accrued liabilities decreased between 2021 and 2023, then increased in 2024, and decreased slightly in 2025.

The company’s reliance on liabilities, particularly long-term operating leases, has increased over the period. The significant decrease in retained earnings in the later years, coupled with the increase in treasury stock, suggests a potential shift in capital allocation strategy, such as increased share repurchases or significant dividend payouts, or potentially lower profitability. The overall trend indicates a growing financial leverage for the company.

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Chipotle Mexican Grill Inc. (NYSE:CMG)

Balance Sheet: Liabilities and Stockholders’ Equity