Chipotle Mexican Grill Inc. (NYSE:CMG)

The financial performance indicators demonstrate a consistent upward trend over the five-year period. Net income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all exhibit growth from 2021 to 2025.

EBITDA Trend

EBITDA increased steadily from US$1,067,420 thousand in 2021 to US$2,370,901 thousand in 2025. This represents a cumulative growth of approximately 122.1% over the period. The rate of increase appears relatively consistent year-over-year, with a slight moderation in growth between 2024 and 2025.

Relationship between Net Income and EBITDA

EBITDA consistently exceeds net income across all reported years. This difference is attributable to the deduction of depreciation, amortization, interest, and taxes from EBITDA to arrive at net income. The gap between EBITDA and net income widens as both values increase, indicating that these deductions are growing in absolute terms but at a slower rate than EBITDA itself.

EBIT and EBITDA Comparison

EBIT and EBITDA are identical in value for each year, indicating that there is no reported interest expense during this period. This suggests the company operates without debt or has successfully managed its debt obligations to maintain zero interest expense.

EBT and EBITDA Comparison

EBITDA consistently exceeds EBT, as expected, due to the addition back of depreciation and amortization. The difference between these two metrics represents the non-cash expenses of depreciation and amortization, which are significant contributors to the overall profitability picture.

Overall, the observed trends suggest a strengthening financial position with increasing profitability. The consistent growth in EBITDA, coupled with the absence of reported interest expense, points to efficient operations and effective capital management.

The Enterprise Value to EBITDA ratio exhibited considerable fluctuation over the five-year period. Initial values decreased, followed by an increase, and then a substantial decline.

Enterprise Value to EBITDA Trend

In 2021, the EV/EBITDA ratio stood at 40.00. A significant decrease was observed in 2022, falling to 29.62. The ratio then increased to 36.37 in 2023, before decreasing again to 32.63 in 2024. The most substantial change occurred between 2024 and 2025, with the ratio declining sharply to 21.49.

Enterprise Value demonstrated an initial increase from 42,695,568 in 2021 to 43,489,172 in 2022. A substantial rise was then recorded, reaching 70,561,726 in 2023 and peaking at 76,522,516 in 2024. However, a considerable decrease occurred in 2025, with Enterprise Value falling to 50,956,614.

EBITDA Trend

EBITDA consistently increased throughout the period. From 1,067,420 in 2021, it rose to 1,468,357 in 2022, then to 1,939,900 in 2023, and further to 2,345,260 in 2024. The rate of increase slowed in 2025, with EBITDA reaching 2,370,901.

The decreasing EV/EBITDA ratio in the latter years, despite continued EBITDA growth, suggests that the market valuation (as reflected in Enterprise Value) did not increase at the same pace as the company’s earnings before interest, tax, depreciation, and amortization. The significant drop in 2025 indicates a potentially more pronounced shift in market perception or a substantial change in the company’s enterprise value relative to its operational earnings.