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Chipotle Mexican Grill (BSP:C1MG34) Financial Strength : 6 (As of Mar. 2025)


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What is Chipotle Mexican Grill Financial Strength?

Chipotle Mexican Grill has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GuruFocus does not calculate Chipotle Mexican Grill's interest coverage with the available data. Chipotle Mexican Grill's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.40. As of today, Chipotle Mexican Grill's Altman Z-Score is 9.54.


Competitive Comparison of Chipotle Mexican Grill's Financial Strength

For the Restaurants subindustry, Chipotle Mexican Grill's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Restaurants Industry

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

* The bar in red indicates where Chipotle Mexican Grill's Financial Strength falls into.


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Chipotle Mexican Grill Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Chipotle Mexican Grill's Interest Expense for the months ended in Mar. 2025 was R$0 Mil. Its Operating Income for the months ended in Mar. 2025 was R$2,842 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was R$25,040 Mil.

Chipotle Mexican Grill's Interest Coverage for the quarter that ended in Mar. 2025 is

GuruFocus does not calculate Chipotle Mexican Grill's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Chipotle Mexican Grill's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1638.208 + 25039.524) / 66223.976
=0.40

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Chipotle Mexican Grill has a Z-score of 9.54, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 9.54 is strong.

* 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  (BSP:C1MG34) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Chipotle Mexican Grill has the Financial Strength Rank of 6.


Chipotle Mexican Grill Financial Strength Related Terms

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Chipotle Mexican Grill Business Description

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 $11.3 billion in 2024. The Mexican concept is almost exclusively company-owned, with just three license stores operated through a master franchise relationship with Alshaya Group in the Middle East. It had a footprint of 3,726 stores at the end of 2024, heavily indexed to the United States, although it maintains a small presence in Canada, the UK, 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.

Chipotle Mexican Grill Headlines

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