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Chipotle Mexican Grill (NYSE:CMG) ROE %

: 45.90% (As of Sep. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chipotle Mexican Grill's annualized net income for the quarter that ended in Sep. 2022 was $1,029 Mil. Chipotle Mexican Grill's average Total Stockholders Equity over the quarter that ended in Sep. 2022 was $2,241 Mil. Therefore, Chipotle Mexican Grill's annualized ROE % for the quarter that ended in Sep. 2022 was 45.90%.

The historical rank and industry rank for Chipotle Mexican Grill's ROE % or its related term are showing as below:

CMG' s ROE % Range Over the Past 10 Years
Min: 1.3   Med: 22.69   Max: 36.03
Current: 36.03

During the past 13 years, Chipotle Mexican Grill's highest ROE % was 36.03%. The lowest was 1.30%. And the median was 22.69%.

CMG's ROE % is ranked better than
87.12% of 326 companies
in the Restaurants industry
Industry Median: 4.73 vs CMG: 36.03

Chipotle Mexican Grill ROE % Historical Data

The historical data trend for Chipotle Mexican Grill's ROE % 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.74 12.58 22.41 19.21 30.25

Chipotle Mexican Grill Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.46 23.17 28.58 48.49 45.90

Competitive Comparison

For the Restaurants subindustry, Chipotle Mexican Grill's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution

For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's ROE % distribution charts can be found below:

* The bar in red indicates where Chipotle Mexican Grill's ROE % falls in comparison to its industry or sector. The grey bar indicates the ROE %'s extreme value range as defined by GuruFocus.



Chipotle Mexican Grill ROE % Calculation

Chipotle Mexican Grill's annualized ROE % for the fiscal year that ended in Dec. 2021 is calculated as

ROE %=Net Income (A: Dec. 2021 )/( (Total Stockholders Equity (A: Dec. 2020 )+Total Stockholders Equity (A: Dec. 2021 ))/ count )
=652.984/( (2020.135+2297.374)/ 2 )
=652.984/2158.7545
=30.25 %

Chipotle Mexican Grill's annualized ROE % for the quarter that ended in Sep. 2022 is calculated as

ROE %=Net Income (Q: Sep. 2022 )/( (Total Stockholders Equity (Q: Jun. 2022 )+Total Stockholders Equity (Q: Sep. 2022 ))/ count )
=1028.552/( (2154.199+2327.381)/ 2 )
=1028.552/2240.79
=45.90 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2022) net income data. ROE % is displayed in the 30-year financial page.


Chipotle Mexican Grill  (NYSE:CMG) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=1028.552/2240.79
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1028.552 / 8880.7)*(8880.7 / 6681.3865)*(6681.3865 / 2240.79)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.58 %*1.3292*2.9817
=ROA %*Equity Multiplier
=15.39 %*2.9817
=45.90 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2022 )
=Net Income/Total Stockholders Equity
=1028.552/2240.79
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1028.552 / 1359.86) * (1359.86 / 1370.464) * (1370.464 / 8880.7) * (8880.7 / 6681.3865) * (6681.3865 / 2240.79)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7564 * 0.9923 * 15.43 % * 1.3292 * 2.9817
=45.90 %

Note: The net income data used here is four times the quarterly (Sep. 2022) net income data. The Revenue data used here is four times the quarterly (Sep. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Chipotle Mexican Grill ROE % Related Terms

Thank you for viewing the detailed overview of Chipotle Mexican Grill's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Chipotle Mexican Grill (NYSE:CMG) Business Description

Chipotle Mexican Grill logo
Traded in Other Exchanges
Address
610 Newport Center Drive, Suite 1400, Newport Beach, CA, USA, 92660
Chipotle Mexican Grill is the largest fast-casual chain restaurant in the United States, with systemwide sales of $7.5 billion in 2021. The Mexican concept is entirely company-owned, with a footprint of more than 3,000 stores, heavily indexed to the United States (though 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
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
Gregg L Engles director 1225 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
Mary A Winston director 557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012
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
Brian R Niccol director, officer: Chairman, CEO 1 GLEN BELL WAY, IRVINE CA 92618
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
Marissa Andrada officer: Chief D&I and People Officer C/O KATE SPADE & COMPANY 2 PARK AVENUE, NEW YORK NY 10016
Curtis E Garner officer: Chief Technology Officer C/O AEROHIVE NETWORKS, INC., 330 GIBRALTAR DRIVE, SUNNYVALE CA 94089
Scott Boatwright officer: Chief Restaurant Officer 1401 WYNKOOP STREET, SUITE 500, DENVER CO 80202

Chipotle Mexican Grill (NYSE:CMG) Headlines

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