Introduction
Chipotle Mexican Grill, Inc., a Delaware corporation, together with its subsidiaries owns and operates Chipotle Mexican Grill restaurants, which feature a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads. We strive to cultivate a better world by serving responsibly sourced, classically cooked, real food with wholesome ingredients and without artificial colors, flavors or preservatives. We are passionate about providing a great guest experience and making our food more accessible to everyone while continuing to be a brand with a demonstrated purpose. Our first Chipotle restaurant opened in Denver, Colorado in 1993. Over 30 years later, our devotion to seeking out high-quality ingredients, raised with respect for animals, farmers, and the environment, remains at the core of our commitment to Food with Integrity.
As of December 31, 2023, we owned and operated 3,371 Chipotle restaurants throughout the United States (“U.S.”) and 66 international Chipotle restaurants. We manage our operations based on eight regions and aggregate our operations to one reportable segment. Our revenue is derived from sales by our restaurants.
Asset Structure Analysis
Chipotle Mexican Grill’s total assets were $8.04 billion as of December 31, 2023, up from $6.93 billion as of December 31, 2023.
Leasehold improvements, property and equipment, net were $2.17 billion as of December 31, 2023, accounting for 27% of total assets.
Operating lease assets were $3.58 billion as of December 31, 2023 as of December 31, 2023, making up 44.5% of total assets.
Total current assets were $1.62 billion as of December 31, 2023, representing 20.1% of total assets.
Of total current assets, cash and cash equivalents were $560.6 million, accounts receivable, net were $115.5 million, prepaid expenses and other current assets were $117.5 million, and investments were $734.8 million.
Liquidity and Solvency
Total current liabilities were $1 billion as of December 31, 2023 with the current ratio of 1.62.
Total liabilities were $5 billion as of December 31, 2023 with the debt ratio of 62.2%.
Profitability
Chipotle Mexican Grill’s total revenues were $9.87 billion, $8.63 billion and $7.55 billion in 2023, 2022 and 2021, respectively.
The total revenues in 2023 were up 14.4% year-on-year.
The total revenues in 2022 were up 14.3% year-on-year.
The company’s net income was $1.23 billion, $899 million and $653 million in 2023, 2022 and 2021, respectively.
The net income in 2023 was up 36.7% year-over-year.
The net income in 2022 was up 37.7% year-over-year.
Cash flow Analysis
Net cash provided by operating activities was $1.78 billion, $1.32 billion and $1.28 billion in 2023, 2022 and 2021, respectively.
Purchases of leasehold improvements, property and equipment were $560.7 million, $479 million and $442.5 million in 2023, 2022 and 2021, respectively.
The company’s free cash was $1.22 billion, $840 million and $837 million in 2023, 2022 and 2021, respectively.
Chipotle Mexican Grill’s operating performance for the six months ended to June 30, 2024
Total revenues were $5.67 billion and $4.88 billion in the six months ended to June 30, 2024 and the six months ended to June 30, 2023.
The total revenues in the six months ended to June 30, 2024 were up 16.2% year-on-year.
Net income in the six months ended to June 30, 2024 was $815 million and net income in the six months ended to June 30, 2023 was $633.4 million.
The company’s net income in the six months ended to June 30, 2024 was up 28.7% year-on-year.
Conclusion
In the past three years, the growth of Chipotle Mexican Grill’s revenues was very fast, but we don’t know how fast the growth in future will be.
We reckon that Chipotle Mexican Grill’s reasonable valuation is around $30 billion, while Chipotle Mexican Grill’s market price is $73.58 billion, which is equivalent to $53.73 per share.
Disclaimer: The content is for reference only and does not constitute investment advice.
