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Chipotle Mexican Grill Financial Strength

: 6 (As of Mar. 2022)
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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 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.

Chipotle Mexican Grill's Interest Coverage for the quarter that ended in Mar. 2022 was 913.29. Chipotle Mexican Grill's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.44. As of today, Chipotle Mexican Grill's Altman Z-Score is 8.00.


Competitive Comparison

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 Financial Strength Distribution

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.



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. 2022 was $-0 Mil. Its Operating Income for the months ended in Mar. 2022 was $195 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $3,331 Mil.

Chipotle Mexican Grill's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*194.531/-0.213
=913.29

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. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(223.303 + 3331.319) / 8082.156
=0.44

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 8.00, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8 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  (NYSE:CMG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Chipotle Mexican Grill has the Financial Strength Rank of 6.


Chipotle Mexican Grill Financial Strength Related Terms

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


Chipotle Mexican Grill Business Description

Chipotle Mexican Grill logo
Industry
Consumer Cyclical » Restaurants NAICS : 722513 SIC : 5812
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 over the last twelve months. The Mexican concept is entirely company-owned, with a footprint of nearly 3,000 stores at the end of 2021 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
Engles Gregg L director 1225 SEVENTEENTH STREET SUITE 1000 DENVER CO 80202
Winston Mary A director 557 BROADWAY C/O SCHOLASTIC CORP NEW YORK NY 10012
Niccol Brian R director, officer: Chairman, CEO 1 GLEN BELL WAY IRVINE CA 92618
Baldocchi Albert S director 1601 HIGH STREET BOULDER CO 80304
Boatwright Scott officer: Chief Restaurant Officer 1401 WYNKOOP STREET SUITE 500 DENVER CO 80202
Pringle Robin S director 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Maw Scott Harlan director 1411 E. MISSION AVENUE SPOKANE WA 99202
Paull Matthew H director MCDONALDS CORP 2915 JORIE BLVD OAK BROOK IL 60523
Flanzraich Neil director 4400 BISCAYNE BLVD MIAMI FL 33137
Cappuccio Paul T director TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019
Filikrushel Patricia director DOLLAR GENERAL CORPORATION 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Namvar Ali director C/O PERSHING SQUARE CAPITAL MANAGEMENT 888 SEVENTH AVENUE, 42ND FLOOR NEW YORK NY 10019
Garner Curtis E officer: Chief Technology Officer C/O AEROHIVE NETWORKS, INC. 330 GIBRALTAR DRIVE SUNNYVALE CA 94089
Andrada Marissa officer: Chief People Officer C/O KATE SPADE & COMPANY 2 PARK AVENUE NEW YORK NY 10016
Schalow Laurie officer: Chief Corp Reputation Officer 610 NEWPORT CENTER DRIVE SUITE 1300 NEWPORT BEACH CA 92660

Chipotle Mexican Grill Headlines

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