Chipotle Mexican GrillMEX:CMG +2.92%83 Return-on-Tangible-Equity is 46.68% as of Mar. 2026, which is 75% above its 10-year median of 26.65. GuruFocus rates MEX:CMG with a GF Score™ of 83/100 and a GF Value™ of MXN1,056.90 (Significantly Undervalued). Among 331 Restaurants companies, Chipotle Mexican Grill ranks better than 81.87% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Chipotle Mexican Grill's annualized net income for the quarter that ended in Mar. 2026 was MXN21,843 Mil. Chipotle Mexican Grill's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN46,796 Mil. Therefore, Chipotle Mexican Grill's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 46.68%.
The historical rank and industry rank for Chipotle Mexican Grill's Return-on-Tangible-Equity or its related term are showing as below:
MEX:CMG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.32 Med: 26.65 Max: 47.68
Current: 47.24
During the past 13 years, Chipotle Mexican Grill's highest Return-on-Tangible-Equity was 47.68%. The lowest was 1.32%. And the median was 26.65%.
MEX:CMG's Return-on-Tangible-Equity is ranked better than 81.87% of 331
companies
in the Restaurants industry
Industry Median: 8.9
vs MEX:CMG: 47.24
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Chipotle Mexican Grill Return-on-Tangible-Equity Related Terms
Chipotle Mexican Grill Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Chipotle Mexican Grill's Return-on-Tangible-Equity 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.
MEX:CMG vs YUM, DRI, YUMC: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, Chipotle Mexican Grill's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chipotle Mexican Grill's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 46.68% mean?
Chipotle Mexican Grill (MEX:CMG) has a Return-on-Tangible-Equity of 46.68% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chipotle Mexican Grill and its competitors. This is 75% above median its historical median of 26.65. Over the past decade, Chipotle Mexican Grill's Return-on-Tangible-Equity has ranged from 1.32 to 47.68. According to the industry distribution chart, Chipotle Mexican Grill ranks #60 out of 331 companies in the Restaurants industry, placing it in the top 18.1%.
Is Chipotle Mexican Grill's Return-on-Tangible-Equity too high?
Chipotle Mexican Grill's current Return-on-Tangible-Equity of 46.68% is 75% above median its 10-year median of 26.65. Over the past 10 years, this metric has ranged from a low of 1.32 to a high of 47.68. The Restaurants industry median Return-on-Tangible-Equity is 8.90. Chipotle Mexican Grill's value of 46.68% is 424.5% above this industry median. Based on the distribution chart, Chipotle Mexican Grill ranks #60 out of 331 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Chipotle Mexican Grill has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chipotle Mexican Grill's Return-on-Tangible-Equity compare to YUM and DRI?
According to the Restaurants industry distribution chart, Chipotle Mexican Grill ranks #60 out of 331 companies for Return-on-Tangible-Equity. This places Chipotle Mexican Grill in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.90. Chipotle Mexican Grill's value of 46.68% is 424.5% above this benchmark. Historically, Chipotle Mexican Grill's own Return-on-Tangible-Equity has ranged from 1.32 to 47.68 over the past decade. While the company's 10-year median is 26.65 vs. the industry median of 8.90, Chipotle Mexican Grill has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.90, based on 331 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chipotle Mexican Grill's current Return-on-Tangible-Equity of 46.68% is 424.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chipotle Mexican Grill and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chipotle Mexican Grill's current Return-on-Tangible-Equity is 46.68%, which is 75% above median its own 10-year median of 26.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chipotle Mexican Grill stock overvalued right now?
Based on GuruFocus' analysis, Chipotle Mexican Grill (MEX:CMG) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,056.90, compared to a current price of MXN619.00 — trading 41.4% below its estimated fair value. The current Return-on-Tangible-Equity is 46.68%, which is 75% above median its 10-year median of 26.65 and 424.5% above the Restaurants industry median of 8.90. Chipotle Mexican Grill's overall GF Score™ is 83/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Chipotle Mexican Grill (MEX:CMG), the current Return-on-Tangible-Equity is 46.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chipotle Mexican Grill (MEX:CMG) Overvalued in 2026?
Based on GuruFocus' analysis, Chipotle Mexican Grill stock appears to be undervalued.
The current stock price of MXN619.00 is trading 41.4% below its estimated GF Value™ of MXN1,056.90.
GuruFocus considers Chipotle Mexican Grill to be Significantly Undervalued.
Key valuation signals for MEX:CMG:
Return-on-Tangible-Equity: 46.68% (75% above median its 10-year median of 26.65)
GF Value™: MXN1,056.90 vs. price of MXN619.00 (41.4% below fair value)
Industry Position: 424.5% above the Restaurants median (#60 of 331)
No single metric tells the full story. See the MEX:CMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chipotle is a leading fast-casual, Mexican-inspired restaurant chain, generating $11.9 billion in sales across 3,983 company-operated US locations, 104 international units primarily in Canada and Europe, and 14 licensed stores largely operated in the Middle East at the end of 2025. The firm's revenue is primarily driven by food and beverage sales at its company-owned restaurants, supplemented by delivery fees generated through its first-party digital channels. Chipotle emphasizes ingredients with no artificial flavors and utilizes an efficient, assembly line service model to serve mainly customizable burritos, bowls, salads, quesadillas, and tacos.
83GF Score
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