Chipotle Mexican Grill

3057 Words May 21st, 2013 13 Pages
(1) Sales, Sales Growth (Hint: Use Revenue Line)
Sales Amount in USD; Growth in percentage. | 2008 | 2009 | 2010 | 2011 | 2012 | SALES | 1,331,968,000 | 1,518,417,000 | 1,835,922,000 | 2,269,548,000 | 2,731,224,000 | SALES GROWTH | ------ | 13.99 | 20.91 | 23.61 | 20.34 |

(2) Gross Margins (Hint: Restaurant Operating Costs Lines for COGS)
Gross Margin = (Sales – COGS) / Sales; Expressed in % | 2008 | 2009 | 2010 | 2011 | 2012 | SALES | 1,331,968,000 | 1,518,417,000 | 1,835,922,000 | 2,269,548,000 | 2,731,224,000 | COGS | 1,045,041,000 | 1,139,898,000 | 1,346,517,000 | 1,680,321,000 | 1,990,884,000 | SALES-COGS | 286,927,000 | 378,519,000 | 489,405,000 | 589,227,000 | 740,340,000 |
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The high sales growth can be attributed to increasing SSS (same store sales) and also opening of new stores. The company is enjoying financial growth and high profitability as seen from ROS, ROA and ROE. All the ratios are showing an average upward trend and that too, over a period of several years. As far as liquidity is concerned, the company is extremely liquid and is enjoying a quick ratio of more than 2. So, it is able to easily meet its short term debt obligations and currently faces no financial difficulties. As far as inventory is concerned it is a very small part of the liquidity and thus does have any significant effect on liquidity.
The D/A ratio are more or less stable for the period and only a quarter of total assets are financed by creditors. As far as D/E ratio, the company is careful to keep its interest expenses down and instead of pursuing an aggressive growth policy and putting everything at stake it is following a balanced approach by keeping it around 35% over the period.
The company is highly effective more than thrice the amount of money locked up in Total Assets for 2012, which shows how efficient the company is and how effectively it is using its assets to generate sales.
The company’s financial statements appear to be quite clear and strong as compared to the industry. Still the operating costs are high but average as compared with the industry. The reasons behind the prices might be the high cost of commodities,
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