Question

In: Economics

look up chipotles financial info and find the revenue growth rates and trends, profitability levels (i.e....

look up chipotles financial info and find the revenue growth rates and trends, profitability levels (i.e. gross and operating margin percentages) and trends, and an assessment of the firm’s overall financial position based upon their 2015-2017 financial

Solutions

Expert Solution

-:Chipotles:-

Chipotles financial info:- Chipotle Mexican Grill, Inc. (NYSE: CMG) is a well-known developer and operator of restaurants.The company was founded in 1993.Chipotle has a simple menu and organic product offerings that can be customized to consumers' tastes. It is also integrating some industry leading technology through ecommerce.

Chipotle has posted some impressive revenue growth. In the third quarter of 2018, Chipotle had nine-month revenue growth of 9% with comparable store growth of 3.3%.

Margins can be an important differential in the restaurant business.Chipotle has been booming, its margins have lagged competitors and are a key area of focus for industry analysts. With a TTM gross margin of 18%.

Chipotle has a skillful management team with a lot of industry experience.The management of capital with the integration of new capital projects is always a concern for senior management. New technologies and restaurant expansions are factors that will affect margins as well as investor returns in the near term.

Revenue growth rate:- Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income.

Average annual sales growth for Chipotle Mexican Grill Inc is 6.34%, while S & P 500's average yearly sales increase is 10.5%, including only Businesses with the second quarter 2020 financial results.

Chipotle Mexican Grill annual revenue for 2017 was $4.476B, a 14.65% increase from 2016.

Chipotle's profitability levels :Chipotle Mexican Grill's gross profit margin decreased in 2015 (37.5%, -0.7%) and 2016 (29.2%, -22.2%) and increased in 2017 (31.5%, +7.7%),

Gross profit:-The gross profit margin measures a company’s gross profit as a percentage of the revenue. The formula to calculate gross profit margin :-

Gross Profit Margin (%) = Gross Profit / Total Revenue

Chipotle Mexican Grill's operated at median gross profit margin of 32.7% from fiscal years ending December 2015 to 2019

Operating profit:-Cipotlel operating margin was 14.1% in the quarter, a decrease from 28.3% in the third quarter of 2015.

Firm's overall financial position 2015 to 2017

The increase in revenue was driven by new restaurant openings and a 6.4% increase in comparable restaurant sales. Comparable restaurant sales for the full year included a 1.2% benefit from menu price increases during the second and fourth quarters and a 0.3% benefit from the accounting for deferred revenue during 2016 and 2017 related to Chiptopia Summer Rewards. Comparable restaurant sales improved primarily as a result of an increase in average check during 2017 compared to 2016.

Restaurant level operating margin was 16.9% for the full year 2017, an improvement from 12.8% in the prior year. The improvement was driven by sales leverage, including the benefit of menu price increases, decreased marketing and promotional spend and labor efficiencies, partially offset by higher wages paid to crew and managers. Marketing and promotional expenses were 3.5% of revenue during 2017, compared to 5.1% of revenue during 2016.

Net income for the full year 2017 was $176.3 million, or $6.17 per diluted share, compared to net income of $22.9 million, or $0.77 per diluted share, for the prior year.


Related Solutions

to restore growth in revenue and profitability the firm acquired competitor Jos.A.Bank in late 2014 for...
to restore growth in revenue and profitability the firm acquired competitor Jos.A.Bank in late 2014 for $1.8 billion after a heated bidding war.The final bid of $65 in cash for each Jos.A.Bank 's share represented a 56% premium to the closing price in early october 2013.The combined company had annual revenue of $3.5 billion and projected annual savings of $100-$150 million consisting of lower overhead,more efficient marketing and improved customer service. How does the size of the premium paid for...
Growth Profitability and Financial Ratios for Alamo Group Inc Financials 2015-12 2016-12 2017-12 TTM Revenue USD...
Growth Profitability and Financial Ratios for Alamo Group Inc Financials 2015-12 2016-12 2017-12 TTM Revenue USD Mil 880 845 912 935 Gross Margin % 23 24.3 25.7 25.8 Operating Income USD Mil 67 68 89 90 Operating Margin % 7.6 8 9.7 9.6 Net Income USD Mil 43 40 44 47 Earnings Per Share USD 3.76 3.46 3.79 3.98 Dividends USD 0.32 0.36 0.4 0.41 Payout Ratio % * 8.2 9.2 9.3 10.3 Shares Mil 11 12 12 12 Book...
WHY MIGHT HIGH LEVELS OF INEQUALITY LEAD TO LOWER RATES OF GROWTH AND DEVELOPMENT AND DO...
WHY MIGHT HIGH LEVELS OF INEQUALITY LEAD TO LOWER RATES OF GROWTH AND DEVELOPMENT AND DO DEVELOPING COUNTRIES CAN ESCAPE THESE TRAPS?
Look online to find an interest rates for each of the following: a) Credit Card What...
Look online to find an interest rates for each of the following: a) Credit Card What is the rate charged for overdue monthly balances? Clearly state your answer. b) Car Company (for financing a new car) Include your sources (links) AND a screencapture of where on the page you found the information.
Based on a company's financial statement, how does liquidity, solvency and profitability make the company look...
Based on a company's financial statement, how does liquidity, solvency and profitability make the company look favorable?
Select a company and go to Yahoo! Finance and look it up. The financial statements are...
Select a company and go to Yahoo! Finance and look it up. The financial statements are easily available there. Identify what types of property, plant and equipment the company has and what they do with it (and most importantly, how that affects the financial statements).
Now, look up an alternative process for decision making on the internet. You will find there...
Now, look up an alternative process for decision making on the internet. You will find there are hundreds of ideas. Tell me what it is in a paragraph of about 300 words. Dr Nosich has one technique that works well in many situations. But, it is not the only one. I encourage you to experiment with several and find the process that works best for you. After selecting the process and writing about it, go through the process writing a...
1. One way of accessing financial information about a company is to look it up at...
1. One way of accessing financial information about a company is to look it up at the company's website. Access the most recent annual report of a company of your choice from the company's website and address the following points. a. Review the company's footnotes (notes accompanying the financial statements) to discover how it applies the revenue recognition principle and when it recognizes revenue. Report what you discover. b. Based on your observation of the financial statements, what amount should...
Please calculate the projected financial information for 2019E & 2020E. The growth rate is 21%. Revenue...
Please calculate the projected financial information for 2019E & 2020E. The growth rate is 21%. Revenue 2017A 2018A 2019E 2020E Total Revenue $7,766,000 $7,782,000 Cost of Revenue $4,299,000 $4,445,000 Gross Profit $3,467,000 $3,337,000 Operating Expenses Selling General and Administrative $2,303,000 $2,382,000 Total Operating Expenses $6,760,000 $7,000,000 Operating Income or Loss $1,006,000 $782,000 Incoming from Continuing Operations Total Other Income/Expenses Net ($2,000) ($204,000) Earnings Before Interest and Taxes $1,006,000 $782,000 Interest Expense ($11,000) ($12,000) income Before Tax $1,004,000 $578,000 Income Tax...
In recent times, with mortgage rates at low levels, financial institutions have had to provide more...
In recent times, with mortgage rates at low levels, financial institutions have had to provide more customer convenience. One of the innovations offered by Coastal National Bank and Trust is online entry of mortgage applications. Listed below are the times, in minutes, for eight customers to complete the application process for a 15-year fixed-rate mortgage and the times for nine customers to complete an application for a 30-year fixed-rate mortgage. 15 years, fixed rate 41 36 42 39 36 48...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT