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Chipotle Mexican Grill (WBO:CHMG) Return-on-Tangible-Equity : 42.83% (As of Mar. 2025)


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What is Chipotle Mexican Grill Return-on-Tangible-Equity?

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. 2025 was €1,430 Mil. Chipotle Mexican Grill's average shareholder tangible equity for the quarter that ended in Mar. 2025 was €3,339 Mil. Therefore, Chipotle Mexican Grill's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 42.83%.

The historical rank and industry rank for Chipotle Mexican Grill's Return-on-Tangible-Equity or its related term are showing as below:

WBO:CHMG' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.32   Med: 22.98   Max: 45.97
Current: 44.05

During the past 13 years, Chipotle Mexican Grill's highest Return-on-Tangible-Equity was 45.97%. The lowest was 1.32%. And the median was 22.98%.

WBO:CHMG's Return-on-Tangible-Equity is ranked better than
80.06% of 321 companies
in the Restaurants industry
Industry Median: 10.98 vs WBO:CHMG: 44.05

Chipotle Mexican Grill Return-on-Tangible-Equity Historical Data

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.

* Premium members only.

Chipotle Mexican Grill Return-on-Tangible-Equity Chart

Chipotle Mexican Grill Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.64 31.61 40.14 45.05 46.82

Chipotle Mexican Grill Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Return-on-Tangible-Equity Get a 7-Day Free Trial 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 45.12 52.10 41.90 37.79 42.83

Competitive Comparison of Chipotle Mexican Grill's Return-on-Tangible-Equity

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's Return-on-Tangible-Equity Distribution in the 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.


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Chipotle Mexican Grill Return-on-Tangible-Equity Calculation

Chipotle Mexican Grill's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=1465.075/( (2787.926+3470.094 )/ 2 )
=1465.075/3129.01
=46.82 %

Chipotle Mexican Grill's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=1430.416/( (3470.094+3208.763)/ 2 )
=1430.416/3339.4285
=42.83 %

* 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. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Chipotle Mexican Grill  (WBO:CHMG) Return-on-Tangible-Equity Explanation

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

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


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.