Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Chipotle Mexican Grill Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	1,535,761)	1,534,110)	1,228,737)	899,101)	652,984)
Depreciation and amortization	361,382)	335,030)	319,394)	286,826)	254,657)
Deferred income tax provision (benefit)	79,483)	(42,937)	(9,505)	(43,195)	(12,357)
Impairment, closure costs, and asset disposals	26,576)	24,582)	37,025)	20,738)	17,086)
Provision for credit losses	(657)	215)	1,570)	(760)	493)
Stock-based compensation expense	119,543)	131,730)	124,016)	98,030)	176,392)
Other	(14,661)	(3,472)	(13,080)	(16,202)	(4,599)
Accounts receivable	(11,383)	(29,274)	(11,216)	(14,026)	(1,687)
Inventory	(710)	(9,797)	(3,649)	(3,011)	(6,392)
Prepaid expenses and other current assets	(33,042)	9,244)	(39,211)	(14,660)	(26,826)
Operating lease assets	332,685)	285,587)	254,241)	234,273)	223,837)
Other assets	(5,155)	(17,690)	4,204)	(346)	3,993)
Accounts payable	(7,449)	8,467)	5,313)	18,208)	21,440)
Accrued payroll and benefits	(12,113)	34,857)	57,048)	9,864)	(44,555)
Accrued liabilities	(10,499)	27,284)	3,188)	(27,964)	10,997)
Unearned revenue	40,710)	46,139)	35,685)	33,374)	34,387)
Income tax payable/receivable	(24,125)	(14,363)	(5,237)	46,262)	193,379)
Operating lease liabilities	(258,228)	(217,894)	(214,477)	(207,186)	(207,164)
Other long-term liabilities	(4,192)	3,258)	9,431)	3,853)	(3,984)
Changes in operating assets and liabilities	6,499)	125,818)	95,320)	78,641)	197,425)
Adjustments to reconcile net income to net cash provided by operating activities	578,165)	570,966)	554,740)	424,078)	629,097)
Net cash provided by operating activities	2,113,926)	2,105,076)	1,783,477)	1,323,179)	1,282,081)
Purchases of leasehold improvements, property and equipment	(666,336)	(593,603)	(560,731)	(479,164)	(442,475)
Purchases of investments	(28,222)	(986,673)	(1,115,131)	(614,416)	(429,350)
Maturities of investments	659,476)	722,637)	729,853)	263,548)	345,748)
Proceeds from sale of equipment	—)	20,113)	—)	—)	4,035)
Net cash used in investing activities	(35,082)	(837,526)	(946,009)	(830,032)	(522,042)
Repurchase of common stock	(2,425,516)	(1,001,559)	(592,349)	(830,140)	(466,462)
Tax withholding on stock-based compensation awards	(49,458)	(74,229)	(69,146)	(98,970)	(79,870)
Other financing activities	4,076)	2,089)	843)	(294)	(2,274)
Net cash used in financing activities	(2,470,898)	(1,073,699)	(660,652)	(929,404)	(548,606)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(416)	(1,635)	381)	(1,007)	(1,039)
Net change in cash, cash equivalents, and restricted cash	(392,470)	192,216)	177,197)	(437,264)	210,394)
Cash, cash equivalents, and restricted cash at beginning of year	778,379)	586,163)	408,966)	846,230)	635,836)
Cash, cash equivalents, and restricted cash at end of year	385,909)	778,379)	586,163)	408,966)	846,230)

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).

The company demonstrates a consistent increase in net income from 2021 through 2023, peaking at US$1,228,737 thousand, before leveling off in 2024 and 2025. Adjustments to reconcile net income to net cash provided by operating activities also show a general upward trend, mirroring the net income pattern, and remain substantial throughout the period. Consequently, net cash provided by operating activities increases significantly from US$1,282,081 thousand in 2021 to US$2,113,926 thousand in 2025.

Investment activities reveal a complex pattern. While purchases of property, plant, and equipment consistently represent a cash outflow, purchases of investments fluctuate considerably, with a particularly large outflow in 2023. Maturities of investments partially offset these outflows, and are substantial throughout the period. Overall, net cash used in investing activities is significant, but decreases substantially in 2025.

Financing activities consistently represent a net cash outflow, primarily driven by the repurchase of common stock. This outflow increases substantially over the period, reaching US$2,425,516 thousand in 2025. Tax withholding related to stock-based compensation also contributes to the outflow. Other financing activities have a minimal impact, with a small net inflow in some years.

Operating Cash Flow Trends: The company consistently generates positive cash flow from operations. The increase in net cash provided by operating activities suggests improving efficiency in managing working capital and converting profits into cash. The adjustments to reconcile net income to net cash from operations remain relatively stable as a percentage of net income, indicating consistent accounting practices.
Investment Activity Analysis: The significant investment outflows, particularly in 2023, suggest substantial capital expenditures or strategic investments. The decrease in net cash used in investing activities in 2025 could indicate a slowdown in major investment projects or an increase in asset sales. The large maturities of investments provide a consistent source of cash inflow, partially offsetting the outflows.
Financing Activity Observations: The consistent repurchase of common stock indicates a commitment to returning capital to shareholders. The increasing magnitude of these repurchases suggests a growing confidence in the company’s financial position and a willingness to reduce the number of outstanding shares. The substantial outflow in 2025 is particularly noteworthy.
Working Capital Dynamics: Changes in operating assets and liabilities demonstrate variability. Accounts receivable and inventory show consistent decreases, which generally contribute positively to cash flow. Fluctuations in prepaid expenses and other current assets are more pronounced. Significant changes are observed in accrued liabilities and income tax payable/receivable, impacting cash flow. The operating lease assets and liabilities show consistent increases, reflecting the adoption and ongoing management of lease obligations.
Overall Cash Position: Despite substantial outflows from investing and financing activities, the company maintained a healthy cash position throughout the period. However, the net change in cash, cash equivalents, and restricted cash was negative in 2022 and 2025, indicating that cash outflows exceeded inflows in those years. The ending cash balance decreased from US$846,230 thousand in 2021 to US$385,909 thousand in 2025.

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Chipotle Mexican Grill Inc. (NYSE:CMG)

Cash Flow Statement