Chipotle Mexican Grill Inc
NYSE:CMG

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Chipotle Mexican Grill Inc Logo
Chipotle Mexican Grill Inc
NYSE:CMG
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Price: 49.67 USD -0.12%
Market Cap: 66.9B USD

ROE
Return on Equity

45.6%
Current
42%
Average
6.2%
Industry

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
45.6%
=
Net Income
1.6B
/
Equity
3.4B

ROE Across Competitors

Chipotle Mexican Grill Inc
Glance View

Economic Moat
Narrow
Market Cap
67B USD
Industry
Hotels, Restaurants & Leisure

Chipotle Mexican Grill Inc. began its journey in 1993 with a single restaurant in Denver, Colorado, sparked by Steve Ells' ambition to blend fine-dining culinary techniques with a fast-casual dining experience. Over the years, Chipotle has carved a distinctive niche in the food industry, offering a simple menu focused on burritos, bowls, tacos, and salads, all made with high-quality ingredients. At the core of Chipotle's ethos is its commitment to “Food with Integrity,” prioritizing sustainably sourced, organic, and local produce, alongside naturally raised meats. This business model, emphasizing the rapid production of fresh, customized meals, resonates with a growing consumer base that is increasingly focused on health, environmental impact, and transparency about food origins. Chipotle's financial success stems from its ability to maintain efficient restaurant operations, characterized by a minimalistic menu and a high degree of standardization across its outlets. The company generates revenue directly through its outlets, each functioning as an independent revenue center. Chipotle's streamlined process, where customers move along an assembly line to customize their meals, allows for high throughput while keeping costs lower than those of traditional full-service restaurants. Additionally, Chipotle's strategic embrace of digital technology has further fueled growth, with a significant portion of sales now coming from online orders and deliveries, boosted by the company's own digital platform and third-party delivery partners. This blend of operational efficiency, strategic innovation, and commitment to quality positions Chipotle as a formidable player in the competitive quick-service restaurant space.

CMG Intrinsic Value
34.94 USD
Overvaluation 30%
Intrinsic Value
Price
What is Return on Equity?

ROE, or Return on Equity, is a key financial ratio that measures a company's profitability. Specifically, it measures how many dollars of profit are generated for each dollar of shareholder's equity. A higher ROE indicates better financial performance and effective use of capital, making it a valuable metric for investors assessing a company's earning potential.

ROE
45.6%
=
Net Income
1.6B
/
Equity
3.4B
What is the ROE of Chipotle Mexican Grill Inc?

Based on Chipotle Mexican Grill Inc's most recent financial statements, the company has ROE of 45.6%.

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