Chipotle Mexican Grill Inc. (NYSE:CMG)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates a consistent upward trend from the initial recorded value of 3.78 in the first quarter of 2020 to a peak of approximately 4.73 around the end of 2024. This indicates an improving efficiency in utilizing fixed assets to generate revenue over this period. After reaching this peak, there is a slight decline towards the quarters in 2025, settling around 4.62, suggesting a minor reduction in asset utilization efficiency but remaining relatively strong compared to earlier values.

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

This ratio, capturing the inclusion of operating leases and right-of-use assets, similarly exhibits an upward trajectory starting at 1.38 in early 2020. The ratio steadily increases through the quarters, reaching around 1.77 by late 2024, then slightly declines to approximately 1.73 by mid-2025. The trend parallels the net fixed asset turnover, reflecting enhanced asset management efficiency when broader asset bases like leased assets are considered, with slight deceleration towards the latest periods.

Total Asset Turnover

The total asset turnover ratio shows a gradual improvement from 1.00 in early 2020 to a high near 1.27 towards the end of 2024. This indicates increasing effectiveness in using all company assets to generate sales. Although minor fluctuations are noticeable, the ratio mostly remains stable above 1.20 after 2021, demonstrating sustained asset efficiency. A slight dip is seen around early 2025 but the overall trend remains positive.

Equity Turnover

The equity turnover ratio begins at 2.96 in early 2020, increasing to a maximum near 3.78 in late 2021, indicating higher revenues generated per unit of equity. However, post this peak, the ratio exhibits a downward movement, falling to a low around 2.87 during 2024. After this decrease, a recovery trend appears in late 2024 to mid-2025, with the ratio climbing back near 3.29. This pattern reflects periods of fluctuating capital utilization efficiency, with stronger performance before and after a mid-term decline.

Revenue Trends

The quarterly revenue figures show a consistent upward trajectory from March 31, 2020, through June 30, 2025. Starting at approximately 1,410,772 thousand US dollars in early 2020, revenue exhibited some fluctuations within that year but generally increased quarter over quarter from 2021 onward. Peak revenue was recorded in the second quarter of 2024 at around 2,973,117 thousand US dollars. Despite some minor dips in the latter quarters, overall, revenue grew substantially over the five-year period, nearly doubling from early 2020 to mid-2025.

Leasehold Improvements, Property and Equipment

The net value of leasehold improvements, property, and equipment showed a consistent increase throughout the entire period. Beginning at approximately 1,465,666 thousand US dollars at the end of Q1 2020, this asset base expanded steadily, reaching around 2,503,429 thousand US dollars by mid-2025. This growth reflects ongoing investment in fixed assets, which aligns with company expansion or refurbishment activities.

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibits a clear upward trend, starting with a value near 3.78 in Q3 2020 and gradually increasing to roughly 4.62 by mid-2025. This rising ratio indicates improving efficiency in utilizing fixed assets to generate revenue. The ratio peaked around 4.73 for several quarters between mid-2024 and early 2025 before slightly moderating. The upward trend suggests that fixed asset investments are yielding proportionately higher revenues over time.

Overall Insights

Over the analyzed period, the company demonstrated consistent revenue growth paralleled by steady capital investment in fixed assets. The improvement in net fixed asset turnover ratio indicates enhanced operational efficiency in asset utilization. This combination of growing revenue and efficient asset use suggests successful scaling and productive deployment of capital resources. Periodic fluctuations in revenue appear minor and do not detract from the overarching growth and efficiency improvement patterns.

The financial data reveals several key trends in operational efficiency and asset utilization over the analyzed periods.

Revenue

There is a clear upward trend in revenue from March 31, 2020, to June 30, 2025. Revenue grew from approximately $1.41 billion in early 2020 to over $3.06 billion by mid-2025. This steady increase indicates strong growth in sales and market demand over the five-year span, with only minor fluctuations observed within quarterly intervals.

Leasehold improvements, property and equipment, net (including operating lease, right-of-use asset)

This asset category shows a consistent increase over the same timeframe, starting from roughly $4.06 billion in March 2020 and reaching nearly $6.71 billion by June 2025. The continuous rise reflects ongoing investment in fixed assets, possibly to support expansion or upgrading of operational facilities.

Net fixed asset turnover (ratio)

The net fixed asset turnover ratio displays an improving trend from 1.38 in December 2020 to a peak around 1.77 in mid-2024, with slight fluctuations thereafter. This indicates enhanced efficiency in using fixed assets to generate revenue. The higher turnover suggests that the company progressively earns more revenue per unit of fixed assets over time.

Overall, the data portrays a business that is expanding its asset base while simultaneously increasing revenue productivity from those assets. The rising net fixed asset turnover ratio underlines improving operational efficiency, which is a positive indicator of asset management.

The financial data reveals several discernible trends over the quarterly periods analyzed. Revenue exhibits a consistent upward trajectory, starting from approximately 1.41 billion USD in the first quarter of 2020 and reaching over 3.06 billion USD by the second quarter of 2025. This steady growth underscores a continuous expansion in the company's sales activities, with notable acceleration apparent from 2022 onward.

Total assets also show a rising pattern, increasing from roughly 5.21 billion USD in early 2020 to approximately 9.27 billion USD by mid-2025. The growth in total assets indicates ongoing investment in the company's asset base, possibly to support operational scalability and capacity enhancements. Despite some periods of slower growth or minor fluctuations, the overall asset trend remains positive.

The total asset turnover ratio, which represents the efficiency of asset utilization in generating revenue, demonstrates incremental improvement. From a value around 1.00 in early 2020, it gradually rises to about 1.25 by mid-2025. This suggests a modest enhancement in asset efficiency, indicating that the company is generating more revenue per unit of asset over time. The ratio exhibits some variability quarter-to-quarter, but the upward slope signals generally improved operational effectiveness.

Revenue Trends

Consistent growth from 1.41 billion USD to 3.06 billion USD over five years, with acceleration from 2022.

Total Assets Movements

Steady increase from 5.21 billion USD to 9.27 billion USD, reflecting asset base expansion.

Asset Turnover Ratio

Gradual improvement from about 1.00 to 1.25 ratio, indicating enhanced efficiency in using assets to generate revenue.

Overall, the company's financial indicators suggest positive growth, augmented asset investment, and improved asset productivity during the examined period.

Revenue Trends

The revenue shows a generally upward trajectory among the quarterly figures provided. Starting from approximately 1.41 billion USD in March 2020, the revenue experienced some fluctuations but maintained growth overall. After a moderate dip in the middle of 2022, revenue increased again sharply towards the end of the period. The highest values were recorded in the last observed quarters, notably reaching over 3 billion USD by mid-2025. This indicates consistent expansion in sales or service delivery over the analyzed timeframe.

Shareholders’ Equity Trends

The shareholders’ equity demonstrates steady growth from about 1.67 billion USD in early 2020 to a peak around 3.7 billion USD in mid-2024. Despite minor downturns in late 2024 and early 2025, the general trend indicates strengthening equity. This suggests that retained earnings and equity financing have positively impacted the company's financial base, enhancing its net asset position over time.

Equity Turnover Trends

The equity turnover ratio, available from the third quarter of 2020 onward, fluctuates within a relatively narrow band between 2.87 and 3.78. The ratio peaked near 3.78 in mid-2022, indicating a period of more efficient use of equity to generate revenue. However, post-peak, it gradually declined toward values slightly above 3.2 in mid-2023 to early 2024, and then further dipped before rising again by mid-2025. This reflects varying levels of efficiency in applying shareholders’ equity to generate sales throughout the periods.

Overall Observations

The combined analysis of revenue, shareholders’ equity, and equity turnover suggests that while the company has steadily grown its revenue base and equity capital over time, the efficiency of equity utilization has experienced moderate volatility. The peaks and troughs in equity turnover indicate changing operational dynamics or capital structure adjustments affecting how effectively equity translates into revenue. Nonetheless, persistent revenue growth alongside rising equity points to underlying strength in financial performance and capacity enhancement.