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Chipotle Mexican Grill (NYSE:CMG) Operating Margin %

: 15.24% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Chipotle Mexican Grill's Operating Income for the three months ended in Dec. 2023 was $384 Mil. Chipotle Mexican Grill's Revenue for the three months ended in Dec. 2023 was $2,516 Mil. Therefore, Chipotle Mexican Grill's Operating Margin % for the quarter that ended in Dec. 2023 was 15.24%.

Good Sign:

Chipotle Mexican Grill Inc operating margin is expanding. Margin expansion is usually a good sign.

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

CMG' s Operating Margin % Range Over the Past 10 Years
Min: 1.94   Med: 9.88   Max: 17.85
Current: 16.54


CMG's Operating Margin % is ranked better than
92% of 350 companies
in the Restaurants industry
Industry Median: 4.175 vs CMG: 16.54

Chipotle Mexican Grill's 5-Year Average Operating Margin % Growth Rate was 20.70% per year.

Chipotle Mexican Grill's Operating Income for the three months ended in Dec. 2023 was $384 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $1,633 Mil.


Chipotle Mexican Grill Operating Margin % Historical Data

The historical data trend for Chipotle Mexican Grill's Operating 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
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.56 5.62 11.20 14.03 16.54

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
Operating 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 14.37 16.13 18.12 16.66 15.24

Competitive Comparison

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

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

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



Chipotle Mexican Grill Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1633.114 / 9871.649
=16.54 %

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

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=383.565 / 2516.32
=15.24 %

* 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.


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

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Chipotle Mexican Grill Operating Margin % Related Terms

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


Chipotle Mexican Grill (NYSE:CMG) 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