Question

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

Answer 1

-: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.