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Chipotle Mexican Grill (NYSE:CMG) Altman Z-Score

: 8.85 (As of Today)
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Good Sign:

Altman Z-score of 8.83 is strong.

Chipotle Mexican Grill has a Altman Z-Score of 8.85, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Chipotle Mexican Grill's Altman Z-Score or its related term are showing as below:

CMG' s Altman Z-Score Range Over the Past 10 Years
Min: 0.29   Med: 13.12   Max: 28.55
Current: 8.83

During the past 13 years, Chipotle Mexican Grill's highest Altman Z-Score was 28.55. The lowest was 0.29. And the median was 13.12.


Chipotle Mexican Grill Altman Z-Score Historical Data

The historical data trend for Chipotle Mexican Grill's Altman Z-Score 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.59 13.03 6.36 7.93 9.22

Chipotle Mexican Grill Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Altman Z-Score 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 9.50 9.22 8.70 7.66 8.30

Competitive Comparison

For the Restaurants subindustry, Chipotle Mexican Grill's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Restaurants industry and Consumer Cyclical sector, Chipotle Mexican Grill's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Chipotle Mexican Grill's Altman Z-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z-Score's extreme value range as defined by GuruFocus.



Chipotle Mexican Grill Altman Z-Score Calculation

Altman 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.

Chipotle Mexican Grill's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0381+1.4*0.6754+3.3*0.1534+0.6*10.2027+1.0*1.2343
=8.85

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2022:
Total Assets was $6,817 Mil.
Total Current Assets was $1,077 Mil.
Total Current Liabilities was $818 Mil.
Retained Earnings was $4,605 Mil.
Pre-Tax Income was 339.965 + 348.17 + 190.008 + 167.559 = $1,046 Mil.
Interest Expense was 0 + 0 + -0.213 + 0 = $-0 Mil.
Revenue was 2220.175 + 2213.339 + 2020.539 + 1960.633 = $8,415 Mil.
Market Cap (Today) was $45,811 Mil.
Total Liabilities was $4,490 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(1077.432 - 817.857)/6817.437
=0.0381

X2=Retained Earnings/Total Assets
=4604.521/6817.437
=0.6754

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1045.702 - -0.213)/6817.437
=0.1534

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=45810.804/4490.056
=10.2027

X5=Revenue/Total Assets
=8414.686/6817.437
=1.2343

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Chipotle Mexican Grill has a Altman Z-Score of 8.85 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Chipotle Mexican Grill  (NYSE:CMG) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Chipotle Mexican Grill Altman Z-Score Related Terms

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


Chipotle Mexican Grill (NYSE:CMG) Business Description

Chipotle Mexican Grill logo
Traded in Other Exchanges
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 in 2021. The Mexican concept is entirely company-owned, with a footprint of more than 3,000 stores, 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
Scott Harlan Maw director 1411 E. MISSION AVENUE, SPOKANE WA 99202
Ali Namvar director C/O PERSHING SQUARE CAPITAL MANAGEMENT, 888 SEVENTH AVENUE, 42ND FLOOR, NEW YORK NY 10019
Patricia Filikrushel director DOLLAR GENERAL CORPORATION, 100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Robin S Hickenlooper director 12300 LIBERTY BOULEVARD, ENGLEWOOD CO 80112
Gregg L Engles director 1225 SEVENTEENTH STREET, SUITE 1000, DENVER CO 80202
Mary A Winston director 557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012
Matt Carey director 11216 WAPLES MILL ROAD SUITE 100, FAIRFAX VA 22030
Mauricio Gutierrez director 211 CARNEGIE CENTER, PRINCETON NJ 08540
Neil Flanzraich director 4400 BISCAYNE BLVD, MIAMI FL 33137
Brian R Niccol director, officer: Chairman, CEO 1 GLEN BELL WAY, IRVINE CA 92618
Christopher W Brandt officer: Chief Marketing Officer 2202 NORTH WESTSHORE BLVD, TAMPA FL 33607
Laurie Schalow officer: Chief Corp Affairs, Food Sft 610 NEWPORT CENTER DRIVE, SUITE 1300, NEWPORT BEACH CA 92660
Marissa Andrada officer: Chief D&I and People Officer C/O KATE SPADE & COMPANY 2 PARK AVENUE, NEW YORK NY 10016
Curtis E Garner officer: Chief Technology Officer C/O AEROHIVE NETWORKS, INC., 330 GIBRALTAR DRIVE, SUNNYVALE CA 94089
Scott Boatwright officer: Chief Restaurant Officer 1401 WYNKOOP STREET, SUITE 500, DENVER CO 80202

Chipotle Mexican Grill (NYSE:CMG) Headlines

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