Chipotle Mexican Grill Inc. (NYSE:CMG)

The analysis of the quarterly financial ratios over the observed periods reveals several notable trends in asset utilization and equity efficiency.

Net Fixed Asset Turnover

This ratio, measuring revenues generated per unit of net fixed assets, demonstrates a gradual upward trend starting from 3.91 in early 2021, peaking around 4.73 in late 2024, before experiencing a slight decline towards 4.54 in the third quarter of 2025. The increase reflects improving efficiency in the use of fixed assets to generate sales, though the recent minor decrease may suggest either saturation or a cautious slowdown in asset productivity.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

When incorporating operating leases and right-of-use assets, this ratio is significantly lower than the traditional net fixed asset turnover but follows a consistent upward trajectory from 1.41 to a peak of 1.77 around late 2024. Afterward, there is a modest decline to 1.69 by the third quarter of 2025. This pattern indicates improved utilization of a broader asset base including leased properties, though the slight drop could imply changes in lease utilization or asset management strategies.

Total Asset Turnover

Total asset turnover ratio steadily increases from 1.03 to around 1.27 by late 2025, indicating an enhancement in generating revenue from the company's overall asset base. There are minor fluctuations but the overall trend suggests effective asset management and revenue generation improvements over the period.

Equity Turnover

Equity turnover, indicating the efficiency in using shareholders' equity to generate sales, shows more variability. It rises from 3.01 to a high of 3.78 mid-2022, then decreases to lows near 2.87 in mid-2024, followed by a recovery back up to approximately 3.66 by late 2025. This fluctuation may reflect changes in equity levels or sales volatility impacting the ratio, highlighting varying degrees of equity utilization effectiveness during the timeframe.

In summary, the asset turnover ratios generally reveal a positive trend of improved efficiency in asset usage with some recent signs of stabilization or slight declines. The equity turnover displays more pronounced volatility, suggesting that shifts in equity or sales dynamics have moderately influenced shareholder equity efficiency. Overall, the financial ratios point to effective management of assets to drive revenue with some caution warranted regarding the more recent downward adjustments.

Revenue Trends

Revenue demonstrates a consistent upward trajectory over the periods analyzed. Starting at approximately 1.74 billion USD in the first quarter of 2021, it reaches a peak near 3.06 billion USD by the second quarter of 2025. This steady growth indicates a solid expansion in business operations and sales generation. Although there are minor quarter-to-quarter fluctuations, the overall pattern shows sustained positive momentum.

Leasehold Improvements, Property, and Equipment

The net value of leasehold improvements, property, and equipment also displays a clear rising trend across the examined timeframe. Beginning at about 1.61 billion USD in early 2021, the asset base increases steadily to approximately 2.59 billion USD by mid-2025. This reflects ongoing investment in fixed assets, likely supporting both capacity growth and modernization efforts.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, indicative of how efficiently the company utilizes its fixed assets to generate revenue, generally rises from 3.91 in the first quarter of 2021 to peak levels around 4.73 in late 2024 and early 2025. However, from mid-2025 onwards, there is a slight declining trend, decreasing to approximately 4.54 by the third quarter of 2025. Despite this minor recent decline, the ratio remains substantially higher than the initial value, suggesting overall improved asset utilization efficiency during the period.

Summary of Insights

The combined data indicate a company experiencing robust revenue growth supported by continuous investment in property and equipment. The rising net fixed asset turnover ratio for most of the time span illustrates strengthening operational efficiency in asset use, although the recent modest decline may warrant monitoring to understand underlying causes. The balance of increasing asset base with expanding revenue points toward sustained capacity development alongside effective resource management.

The financial data reveals several notable trends over the reported periods. Revenue has exhibited a consistent upward trajectory from the first quarter of 2021 through the second quarter of 2025, reflecting ongoing business growth. This growth is punctuated by periodic seasonal fluctuations, with certain quarters demonstrating higher revenue figures than others, yet the overall direction remains positive.

Regarding leasehold improvements, property, and equipment (including operating lease, right-of-use asset), there is a steady increase across all periods. This trend suggests continuous investment in fixed assets, likely aimed at supporting expansion and enhancing operational capacity. The asset base has grown substantially, nearly doubling over the timeframe presented, indicating an aggressive capital expenditure strategy.

The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate revenue, has generally improved from 1.41 at the beginning of 2021 to a peak around 1.77 in mid-2024, followed by a mild decline towards 1.69 by mid-2025. This pattern implies that the company has been increasingly effective in deploying its assets to drive revenue; however, the slight decrease toward the end may warrant monitoring to understand potential shifts in asset utilization or revenue generation efficiency.

Revenue Trends

Continuous growth with seasonal variations, increasing from approximately $1.74 billion to over $3 billion in thousands of dollars over the examined periods.

Leasehold Improvements, Property, and Equipment

Marked and steady increase, indicating ongoing capital investments and expansion of asset base from about $4.47 billion to nearly $7 billion in thousands of dollars.

Net Fixed Asset Turnover Ratio

Improvement from 1.41 to a peak near 1.77, reflecting enhanced efficiency in asset utilization to generate revenue; slight decline observed in the latest quarters suggests a need for further analysis.

Overall, the company demonstrates strong revenue growth supported by increasing investments in fixed assets, alongside generally improved efficiency in using these assets. Close attention to the recent softening in asset turnover may help identify any emerging operational challenges.

The financial data reveals an overall upward trajectory in revenue over the observed periods, with some fluctuations in the later quarters. Total assets also show a consistent increase, indicating expanding asset base. The total asset turnover ratio displays moderate variability but remains above 1.0, suggesting effective use of assets in generating revenue.

Revenue Trends

Revenue exhibited steady growth from 1,741,575 thousand USD in March 2021 to 3,003,444 thousand USD in September 2025. This represents a significant expansion over the period. Notably, revenue experienced consistent increases quarter-over-quarter, with the highest recorded value in June 2025 at 3,063,393 thousand USD. Some minor declines or stabilizations occurred in certain quarters, such as a small dip between June and September 2024, and again toward the end of 2025.

Total Assets Trends

Total assets increased from 6,149,059 thousand USD in March 2021 to 9,281,848 thousand USD by September 2025. The asset base grew steadily throughout all quarters, with occasional modest accelerations in asset accumulation, especially noticeable around 2023 and mid-2024. The continuous asset growth indicates ongoing investment or accumulation of resources.

Total Asset Turnover Analysis

The total asset turnover ratio started at 1.03 in March 2021 and showed a generally rising pattern, peaking near 1.27 in multiple quarters such as September 2025 and March 2023. This ratio above 1.0 indicates that revenue generation exceeds total asset value, reflecting efficiency in utilizing assets. There were minor fluctuations, but the ratio remained relatively stable above 1.20 from 2022 onward. This stability suggests consistent operational efficiency despite expanding asset base.

The analysis of the quarterly financial data reveals notable trends in revenue, shareholders’ equity, and equity turnover ratios over the observed periods.

Revenue

Revenue shows a generally upward trajectory from the earliest to the latest periods, increasing from approximately $1.74 billion in March 2021 to around $3.00 billion in September 2025. This growth is consistent, with occasional quarter-to-quarter fluctuations. Noteworthy peaks appear in mid-2024, with revenue surpassing $2.9 billion, followed by some variability but maintaining a level above $2.8 billion thereafter. The substantial increase in revenue over the period indicates strong business expansion or enhanced sales performance.

Shareholders’ Equity

Shareholders’ equity exhibits a mixed trend. Initial growth occurs from March 2021, where equity stands at approximately $2.10 billion, peaking several times around mid-2024 with values exceeding $3.7 billion. However, after this peak, equity decreases noticeably, dropping to around $3.22 billion by September 2025. The rise and subsequent decline suggest periods of capital injections or retained earnings growth, followed by possible distributions, share repurchases, or losses impacting equity negatively.

Equity Turnover Ratio

The equity turnover ratio fluctuates in a relatively narrow band between roughly 2.87 and 3.78 throughout the timeline. Early values hover around 3.0 to 3.3, reaching a peak near 3.78 around mid-2022. Post-peak, the ratio tends to decline, hitting lows close to 2.87, and then recovers again toward the latter periods, ending above 3.6 by the last reported quarter. These variations indicate changes in how efficiently the company generates revenue from its equity base, with periods of increased and decreased asset productivity relative to shareholders’ equity.

In summary, the company demonstrates steady revenue growth accompanied by substantial fluctuations in shareholders’ equity, and moderate variability in the equity turnover ratio, reflecting operational scaling alongside changes in financial structure and efficiency of equity utilization over the reporting periods.