Chipotle Mexican Grill (NYSE:CMG) Net-Net Working Capital

: $-127.26 (As of Sep. 2023)

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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Chipotle Mexican Grill's Net-Net Working Capital for the quarter that ended in Sep. 2023 was $-127.26.

The industry rank for Chipotle Mexican Grill's Net-Net Working Capital or its related term are showing as below:

CMG's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Restaurants industry.
Industry Median: 11.45
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Chipotle Mexican Grill Net-Net Working Capital Historical Data

The historical data trend for Chipotle Mexican Grill's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Chipotle Mexican Grill Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Net-Net Working Capital

-3.24

-88.90

-104.27

-113.54

-128.94

Chipotle Mexican Grill Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Net-Net Working Capital																-131.02	-128.94	-124.72	-121.97	-127.26

Competitive Comparison

For the Restaurants subindustry, Chipotle Mexican Grill's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Chipotle Mexican Grill Price-to-Net-Net-Working-Capital Distribution

For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Chipotle Mexican Grill's Price-to-Net-Net-Working-Capital falls into.

Chipotle Mexican Grill Net-Net Working Capital Calculation

Chipotle Mexican Grill's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2022 is calculated as

	Net-Net Working Capital		(A: Dec. 2022 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(899.136	+	0.75 * 106.88	+	0.5 * 35.668	-	4559.481
-	0	-	0)	/	27.627
=	-128.94

Chipotle Mexican Grill's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2023 is calculated as

	Net-Net Working Capital		(Q: Sep. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1454.006	+	0.75 * 71.122	+	0.5 * 40.177	-	5025.179
-	0	-	0)	/	27.485
=	-127.26

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Chipotle Mexican Grill (NYSE:CMG) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Chipotle Mexican Grill Net-Net Working Capital Related Terms

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Chipotle Mexican Grill (NYSE:CMG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Chipotle Mexican Grill Inc (NYSE:CMG) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

CMG:Mexico C9F:Germany C1MG34:Brazil CHMG:Austria

Address

610 Newport Center Drive, Suite 1100, Newport Beach, CA, USA, 92660

Website

https://www.chipotle.com

Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $8.6 billion in 2022. The Mexican concept is predominately company-owned (it recently inked a development agreement with Alshaya Group in the Middle East), with a footprint of nearly 3,200 stores at the end of 2022, heavily indexed to the United States, although the firm maintains a small presence in Canada, the U.K., France, and Germany. Chipotle sells burritos, burrito bowls, tacos, quesadillas, and beverages, with a selling proposition built around competitive prices, high-quality food sourcing, speed of service, and convenience. The company generates its revenue entirely from restaurant sales and delivery fees.

Executives

Laura Fuentes	director	7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Scott Harlan Maw	director	1411 E. MISSION AVENUE, SPOKANE WA 99202
Ali Namvar	director	C/O PERSHING SQUARE CAPITAL MANAGEMENT, 888 SEVENTH AVENUE, 42ND FLOOR, NEW YORK NY 10019
Patricia Filikrushel	director	DOLLAR GENERAL CORPORATION, 100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Robin S Hickenlooper	director	12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
Mary A Winston	director	557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012
Gregg L Engles	director	1225 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
Matt Carey	director	11216 WAPLES MILL ROAD SUITE 100, FAIRFAX VA 22030
Mauricio Gutierrez	director	211 CARNEGIE CENTER, PRINCETON NJ 08540
Neil Flanzraich	director	4400 BISCAYNE BLVD, MIAMI FL 33137
Marissa Andrada	officer: Chief D&I and People Officer	C/O KATE SPADE & COMPANY 2 PARK AVENUE, NEW YORK NY 10016
Christopher W Brandt	officer: Chief Marketing Officer	2202 NORTH WESTSHORE BLVD, TAMPA FL 33607
Laurie Schalow	officer: Chief Corp Affairs, Food Sft	610 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Brian R Niccol	director, officer: Chairman, CEO	1 GLEN BELL WAY, IRVINE CA 92618
Curtis E Garner	officer: Chief Technology Officer	C/O AEROHIVE NETWORKS, INC., 330 GIBRALTAR DRIVE, SUNNYVALE CA 94089