Analysis of Geographic Areas
Chipotle Mexican Grill Inc. operates in 2 regions: United States and International.
Area Profit Margin
Chipotle Mexican Grill Inc., profit margin by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 23.66% | 22.86% | — | — | — |
| International | -352.40% | -439.12% | — | — | — |
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 profit margin data for different geographic areas reveals contrasting trends over the analyzed periods. In the United States, the profit margin is only reported for the most recent two years, showing a positive and stable trend. Specifically, the margin increased from 22.86% in 2023 to 23.66% in 2024, indicating a slight improvement in profitability within this primary market.
Conversely, the international segment displays significantly negative profit margins in the last two reported years. The values were -439.12% in 2023 and improved marginally to -352.4% in 2024. Although the international margin remains deeply negative, the reduction in the negative figure suggests some progress toward mitigating losses in this region, but profitability is far from being achieved.
- United States
- The data indicates a consistent positive profit margin above 20% for the years available, with a modest upward trend from 2023 to 2024.
- International
- Extremely high negative profit margins in both reported years characterize the international segment. Despite this, there is a notable reduction in losses between 2023 and 2024, reflecting potential cost management or other operational improvements that have not yet resulted in positive profitability.
In summary, the United States market remains the primary driver of profitability with stable and healthy margins. The international operations, however, continue to experience substantial financial challenges, although there are signs of gradual improvement. This divergent performance across regions may warrant focused strategic efforts to enhance international business outcomes while maintaining strong profitability domestically.
Area Profit Margin: United States
Chipotle Mexican Grill Inc.; United States; area profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income from operations | 2,628,599) | 2,222,118) | —) | —) | —) |
| Revenue | 11,111,732) | 9,720,369) | —) | —) | —) |
| Area Profitability Ratio | |||||
| Area profit margin1 | 23.66% | 22.86% | — | — | — |
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).
1 2024 Calculation
Area profit margin = 100 × Income from operations ÷ Revenue
= 100 × 2,628,599 ÷ 11,111,732 = 23.66%
- Revenue Trends
- The revenue from the United States geographic area demonstrates a clear upward trajectory over the observed periods. Specifically, revenue increased significantly from 9,720,369 thousand USD in 2023 to 11,111,732 thousand USD in 2024. This indicates robust growth in sales or service delivery within this market segment.
- Income from Operations
- Income from operations also shows a strong positive trend, rising from 2,222,118 thousand USD in 2023 to 2,628,599 thousand USD in 2024. This increase aligns with the growth in revenue, suggesting improved operational efficiency or effective cost management contributing to enhanced profitability.
- Area Profit Margin
- The area profit margin, representing the proportion of income from operations relative to revenue, has marginally increased from 22.86% in 2023 to 23.66% in 2024. This subtle improvement indicates slightly better profitability on each dollar of revenue, which could be a result of operational improvements, pricing strategies, or cost control measures within the United States operations.
Area Profit Margin: International
Chipotle Mexican Grill Inc.; International; area profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income from operations | (712,266) | (664,305) | —) | —) | —) |
| Revenue | 202,121) | 151,280) | —) | —) | —) |
| Area Profitability Ratio | |||||
| Area profit margin1 | -352.40% | -439.12% | — | — | — |
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).
1 2024 Calculation
Area profit margin = 100 × Income from operations ÷ Revenue
= 100 × -712,266 ÷ 202,121 = -352.40%
- Revenue
- The revenue figures for the international geographic area first appear in the year ended December 31, 2023, with a value of $151.3 million. In the following year, ending December 31, 2024, revenue increased significantly by approximately 33.5%, reaching $202.1 million. This indicates a strong upward trend in sales within this region during the most recent two years reported.
- Income from Operations
- Income from operations is reported only for the years ending December 31, 2023, and 2024. Both years show negative values, indicating operating losses in the international area. The loss increased from approximately $664.3 million in 2023 to $712.3 million in 2024, reflecting a deterioration in operating profitability by about 7.3% year-over-year. This consistent operating loss despite rising revenues suggests challenges in controlling costs or achieving operational efficiencies internationally.
- Area Profit Margin
- The area profit margin is deeply negative for the two available years, with a margin of -439.12% in 2023 improving somewhat to -352.4% in 2024. Although the margin remains substantially negative, the reduction in the magnitude of the loss margin indicates some improvement in profitability relative to sales, but still reflects severe unprofitability in the international segment.
- Overall Analysis
- The international geographic area is characterized by a significant increase in revenue accompanied by substantial operating losses over the observed period. While revenues show promising growth, the area is currently generating negative income from operations, resulting in extremely negative profit margins. The improvement in the profit margin percentage suggests that operational performance might be gradually improving, although losses remain very high compared to revenue. These trends point to the area being in a developmental or investment phase, with ongoing challenges in managing costs or achieving break-even profitability.
Area Return on Assets (Area ROA)
Chipotle Mexican Grill Inc., ROA by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 42.08% | 39.42% | — | — | — |
| International | -498.62% | -596.56% | — | — | — |
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).
- United States ROA
- The return on assets (ROA) for the United States segment is available only for the years 2023 and 2024. It shows a positive trend, increasing from 39.42% in 2023 to 42.08% in 2024. This upward movement indicates an improvement in asset utilization and profitability in this geographic area over the one-year period.
- International ROA
- The international segment displays ROA data for 2023 and 2024, both of which are negative with significant magnitudes. The ROA improved slightly from -596.56% in 2023 to -498.62% in 2024, yet it remains deeply negative. This suggests substantial challenges in generating returns on assets in international markets, although there is some reduction in the extent of losses year over year.
- Overall Geographic Trends
- The data reveals a stark contrast between the United States and international segments. While the domestic segment demonstrates strong and improving returns, the international segment is struggling with consistently negative returns, albeit with marginal improvement. The international business might be incurring heavy costs or facing operational inefficiencies that profoundly impact asset profitability. The positive trend in the United States reflects effective asset use and possibly better market conditions or management strategies in that region.
Area ROA: United States
Chipotle Mexican Grill Inc.; United States; area ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income from operations | 2,628,599) | 2,222,118) | —) | —) | —) |
| Long-lived tangible assets | 6,247,406) | 5,637,230) | —) | —) | —) |
| Area Profitability Ratio | |||||
| Area ROA1 | 42.08% | 39.42% | — | — | — |
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).
1 2024 Calculation
Area ROA = 100 × Income from operations ÷ Long-lived tangible assets
= 100 × 2,628,599 ÷ 6,247,406 = 42.08%
- Income from Operations
- The income from operations displayed a positive trend from 2023 to 2024, increasing from $2,222,118 thousand to $2,628,599 thousand. This represents a substantial growth in operational profitability within the United States geographic area over this period.
- Long-lived Tangible Assets
- The value of long-lived tangible assets also increased from 2023 to 2024, rising from $5,637,230 thousand to $6,247,406 thousand. This upward trend suggests continued investment or asset growth, reflecting expansion or enhancement of the company's physical asset base.
- Area Return on Assets (ROA)
- The area ROA showed improvement, growing from 39.42% in 2023 to 42.08% in 2024. This indicates increasing efficiency in generating income from the assets employed within the United States market.
- Overall Analysis
- Between 2023 and 2024, the financial data reveals a consistent upward trajectory in key performance indicators. Both operational income and tangible asset values increased notably, while the area ROA's growth points to enhanced asset utilization and profitability. Collectively, these trends reflect strengthened financial performance and potentially successful strategic initiatives focused on the United States geographic area.
Area ROA: International
Chipotle Mexican Grill Inc.; International; area ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Income from operations | (712,266) | (664,305) | —) | —) | —) |
| Long-lived tangible assets | 142,847) | 111,356) | —) | —) | —) |
| Area Profitability Ratio | |||||
| Area ROA1 | -498.62% | -596.56% | — | — | — |
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).
1 2024 Calculation
Area ROA = 100 × Income from operations ÷ Long-lived tangible assets
= 100 × -712,266 ÷ 142,847 = -498.62%
The analyzed data reveals a clear progression in the international segment's financial performance and asset base over the most recent two reported periods, 2023 and 2024. Income from operations, initially unreported in the earlier years, demonstrates significant negative values, indicating substantial operational losses that have deepened from 2023 to 2024. Specifically, the losses increased from approximately -$664 million to -$712 million, highlighting escalating challenges or elevated expenses in the international market during this period.
In parallel, long-lived tangible assets within the international segment have shown a notable upward trend. Starting from the first recorded value in 2023, the asset value rose from about $111 million to nearly $143 million in 2024. This increase suggests considerable investments or acquisitions of physical assets, potentially reflecting expansion initiatives or capital improvements aimed at supporting future growth despite current operational losses.
The Area Return on Assets (ROA) metric, which evaluates profitability relative to asset base, is recorded as deeply negative in both years, although there is a slight improvement from -596.56% in 2023 to -498.62% in 2024. Despite the negative values, the relative improvement could signify initial positive effects from asset investments or beginning operational efficiencies; however, the extreme negative ratio indicates that losses significantly exceed the asset base, pointing to ongoing financial stress in the international operations.
Overall, the data suggests that the international operations are in an expansion or investment phase with increasing asset holdings, but the segment continues to generate substantial operating losses, resulting in severely negative returns on assets. This pattern underscores a need for continued monitoring of operational strategies and cost management to improve profitability moving forward.
Area Asset Turnover
Chipotle Mexican Grill Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 1.78 | 1.72 | — | — | — |
| International | 1.41 | 1.36 | — | — | — |
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 asset turnover ratios for the geographic areas show data for the United States and International segments over the periods ending December 31, 2023, and December 31, 2024, with no available data before 2023.
- United States
- The asset turnover ratio in the United States displays a positive trend from 1.72 in 2023 to 1.78 in 2024. This increase indicates a moderate improvement in the efficiency with which assets generate revenue within this region during the most recent period.
- International
- Similarly, the International asset turnover ratio rose from 1.36 in 2023 to 1.41 in 2024. Although the ratio remains lower than that of the United States, it reflects a comparable upward trajectory, suggesting enhanced asset utilization internationally.
Overall, both geographic areas demonstrate an increase in asset turnover ratios over the one-year period available, signaling improved operational efficiency in asset usage across all reported regions. The United States maintains a higher ratio relative to the International segment, implying better asset productivity domestically compared to abroad.
Area Asset Turnover: United States
Chipotle Mexican Grill Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 11,111,732) | 9,720,369) | —) | —) | —) |
| Long-lived tangible assets | 6,247,406) | 5,637,230) | —) | —) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.78 | 1.72 | — | — | — |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived tangible assets
= 11,111,732 ÷ 6,247,406 = 1.78
- Revenue
-
The revenue figures indicate a positive growth trajectory over the most recent periods available. From approximately $9.72 billion, revenue increased to about $11.11 billion, demonstrating a notable upward trend. This growth suggests an expansion in sales or an increase in unit volume within the United States geographic area.
- Long-lived Tangible Assets
-
Long-lived tangible assets also show an upward trend, rising from roughly $5.64 billion to $6.25 billion. The increase in these assets may reflect capital investment activities such as property, plant, and equipment expansions, which could support the growth in revenue or operational capacity.
- Area Asset Turnover
-
The area asset turnover ratio exhibits a marginal improvement from 1.72 to 1.78. This ratio measures the efficiency with which the company uses its tangible assets to generate revenue. The increase indicates slightly enhanced utilization of assets, contributing to revenue growth while potentially optimizing asset deployment.
Area Asset Turnover: International
Chipotle Mexican Grill Inc.; International; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 202,121) | 151,280) | —) | —) | —) |
| Long-lived tangible assets | 142,847) | 111,356) | —) | —) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.41 | 1.36 | — | — | — |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived tangible assets
= 202,121 ÷ 142,847 = 1.41
The financial data for the international segment displays figures only for the years ending December 31, 2023, and December 31, 2024, suggesting the segment's operations or reporting began in 2023 or that prior data is unavailable.
- Revenue
- Revenue increased notably from $151.28 million in 2023 to $202.12 million in 2024. This represents a significant growth in sales, indicating successful expansion or increased market penetration in the international geographic area over the one-year period.
- Long-lived tangible assets
- Long-lived tangible assets also grew from approximately $111.36 million in 2023 to $142.85 million in 2024. The increase in asset base may reflect investments in property, plant, and equipment needed to support the expanding international operations.
- Area asset turnover
- The area asset turnover ratio, a metric indicating how efficiently the assets are being used to generate revenue, rose slightly from 1.36 in 2023 to 1.41 in 2024. This marginal improvement suggests that despite increased asset investments, the company managed to enhance asset utilization and productivity in the international market.
Overall, the data shows positive momentum in the international segment, characterized by solid revenue growth, increased asset deployment, and somewhat improved operational efficiency. This pattern suggests successful scaling efforts and effective use of expanded resources within a short timeframe.
Revenue
Chipotle Mexican Grill Inc., revenue by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 11,111,732) | 9,720,369) | —) | —) | —) |
| International | 202,121) | 151,280) | —) | —) | —) |
| Total | 11,313,853) | 9,871,649) | —) | —) | —) |
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).
- United States Revenue
- The revenue generated in the United States demonstrates a significant increase from 9,720,369 thousand US dollars in 2023 to 11,111,732 thousand US dollars in 2024. This growth indicates strong domestic market performance over the one-year period.
- International Revenue
- International revenue also shows a positive upward trend, increasing from 151,280 thousand US dollars in 2023 to 202,121 thousand US dollars in 2024. Although the absolute values are smaller compared to the domestic revenue, the international segment is expanding.
- Total Revenue
- Total revenue increased from 9,871,649 thousand US dollars in 2023 to 11,313,853 thousand US dollars in 2024. This overall increase is consistent with the growth observed in both the domestic and international markets.
- General Observations
- The data for prior years before 2023 are not present, limiting trend analysis over a longer period. However, the available figures clearly show a positive growth trajectory in revenue for both geographic segments within the last reported year. The domestic market remains the dominant source of revenue, contributing the vast majority of the total revenue. The international segment, while smaller in scale, is also exhibiting growth, suggesting potential expansion or increased market penetration abroad.
Income from operations
Chipotle Mexican Grill Inc., income from operations by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 2,628,599) | 2,222,118) | —) | —) | —) |
| International | (712,266) | (664,305) | —) | —) | —) |
| Total | 1,916,333) | 1,557,813) | —) | —) | —) |
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 income from operations data segmented by geographic area demonstrates distinct trends for the United States and International regions over the reported periods. Notably, data is only available for the years ending December 31, 2023, and 2024, while earlier years show no recorded values.
- United States
- The United States segment shows positive income from operations in 2023 and 2024, with figures rising from approximately 2.22 billion US dollars in 2023 to about 2.63 billion US dollars in 2024. This indicates a substantial year-over-year growth of roughly 18.2%, reflecting improved operational performance or business expansion within this market during the most recent year.
- International
- The International segment reports negative income from operations for both 2023 and 2024, with losses increasing slightly from approximately -664.3 million US dollars in 2023 to -712.3 million US dollars in 2024. This represents an approximate worsening of 7.3% year-over-year, suggesting continuing operational challenges or investments that have yet to yield positive returns in international markets.
- Total
- When aggregating both geographic segments, total income from operations is positive, growing from around 1.56 billion US dollars in 2023 to approximately 1.92 billion US dollars in 2024. This equates to an overall increase of about 23%. The total positive figure is primarily driven by the strength of the United States operations, which more than offsets the ongoing losses internationally.
Overall, the data reflect a strong and growing core operation in the United States, while the International segment continues to face operational losses. The increasing total income from operations suggests the company’s profitability is improving, driven predominantly by domestic growth, despite the lingering challenges abroad.
Long-lived tangible assets
Chipotle Mexican Grill Inc., long-lived tangible assets by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 6,247,406) | 5,637,230) | —) | —) | —) |
| International | 142,847) | 111,356) | —) | —) | —) |
| Total | 6,390,253) | 5,748,586) | —) | —) | —) |
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).
- United States Long-Lived Tangible Assets
- The value of long-lived tangible assets in the United States shows a notable increase over the reported periods. Specifically, from the first available data point in 2023 to 2024, the assets grew from approximately $5,637 million to $6,247 million. This reflects a growth rate of around 10.7%, suggesting an expansion or reinvestment within the domestic market.
- International Long-Lived Tangible Assets
- The international segment also exhibits growth in long-lived tangible assets, with values rising from around $111 million in 2023 to approximately $143 million in 2024. This increase of roughly 28.3% indicates a more aggressive expansion or asset acquisition in international markets compared to the domestic region during the same period.
- Total Long-Lived Tangible Assets
- The total long-lived tangible assets, aggregating both domestic and international figures, have increased from about $5,749 million in 2023 to $6,390 million in 2024. This overall growth of approximately 11.2% aligns closely with the pattern observed in the domestic assets, which dominate the total asset base.
- General Observations
- The data indicates a clear upward trend in long-lived tangible assets, predominantly driven by domestic growth, with a smaller yet significant expansion internationally. The absolute value of international assets remains a fraction of the domestic assets, but the percentage growth internationally is markedly higher, suggesting strategic resource allocation to international markets. Missing data for earlier years limits trend analysis prior to 2023.