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Chipotle Mexican Grill (Chipotle Mexican Grill) Gross Margin %

: 25.37% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Chipotle Mexican Grill's Gross Profit for the three months ended in Dec. 2023 was $638 Mil. Chipotle Mexican Grill's Revenue for the three months ended in Dec. 2023 was $2,516 Mil. Therefore, Chipotle Mexican Grill's Gross Margin % for the quarter that ended in Dec. 2023 was 25.37%.


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

CMG' s Gross Margin % Range Over the Past 10 Years
Min: 12.76   Med: 21.54   Max: 27.21
Current: 26.2


During the past 13 years, the highest Gross Margin % of Chipotle Mexican Grill was 27.21%. The lowest was 12.76%. And the median was 21.54%.

CMG's Gross Margin % is ranked worse than
80.47% of 343 companies
in the Restaurants industry
Industry Median: 46.87 vs CMG: 26.20

Chipotle Mexican Grill had a gross margin of 25.37% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Chipotle Mexican Grill was 7.10% per year.


Chipotle Mexican Grill Gross Margin % Historical Data

The historical data trend for Chipotle Mexican Grill's Gross Margin % 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.45 17.40 22.62 23.88 26.20

Chipotle Mexican Grill Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % 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 23.96 25.63 27.47 26.29 25.37

Competitive Comparison

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

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

* The bar in red indicates where Chipotle Mexican Grill's Gross Margin % falls into.



Chipotle Mexican Grill Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Chipotle Mexican Grill's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2586.1 / 9871.649
=(Revenue - Cost of Goods Sold) / Revenue
=(9871.649 - 7285.557) / 9871.649
=26.20 %

Chipotle Mexican Grill's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=638.3 / 2516.32
=(Revenue - Cost of Goods Sold) / Revenue
=(2516.32 - 1878.016) / 2516.32
=25.37 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Chipotle Mexican Grill  (NYSE:CMG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Chipotle Mexican Grill had a gross margin of 25.37% for the quarter that ended in Dec. 2023 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Chipotle Mexican Grill Gross Margin % Related Terms

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


Chipotle Mexican Grill (Chipotle Mexican Grill) Business Description

Traded in Other Exchanges
Address
610 Newport Center Drive, Suite 1100, Newport Beach, CA, USA, 92660
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
Brian R Niccol director, officer: Chairman, CEO 1 GLEN BELL WAY, IRVINE CA 92618
Gregg L Engles director 1225 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
Scott Boatwright officer: Chief Restaurant Officer 1401 WYNKOOP STREET, SUITE 500, DENVER CO 80202
Robin S Hickenlooper director 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
Laurie Schalow officer: Chief Corp Affairs, Food Sft 610 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Curtis E Garner officer: Chief Technology Officer C/O AEROHIVE NETWORKS, INC., 330 GIBRALTAR DRIVE, SUNNYVALE CA 94089
Christopher W Brandt officer: Chief Marketing Officer 2202 NORTH WESTSHORE BLVD, TAMPA FL 33607
Patricia Filikrushel director DOLLAR GENERAL CORPORATION, 100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Laura Fuentes director 7930 JONES BRANCH DRIVE, MCLEAN VA 22102
Albert S Baldocchi director 1601 HIGH STREET, BOULDER CO 80304
Marissa Andrada officer: Chief D&I and People Officer C/O KATE SPADE & COMPANY 2 PARK AVENUE, NEW YORK NY 10016
Roger E Theodoredis officer: Chief Legal Officer & GC 1225 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
Pershing Square Capital Management, L.p. director 787 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019
Jack Hartung officer: CFO & Chief Development Ofcr 1543 WAZEE STREET, SUITE 200, DENVER CO 80202
Scott Harlan Maw director 1411 E. MISSION AVENUE, SPOKANE WA 99202

Chipotle Mexican Grill (Chipotle Mexican Grill) Headlines