CMGChipotle Mexican Grill
Is the business good?
A genuinely good business: earnings fully cash-backed (1.7×) and elite returns on assets.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 57% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CMG?
Chipotle Mexican Grill earns 94% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 85 points above what the capital costs: growth creates value
- Operating margin
- 15%
Operating margin · Restaurants median 7.8% · 12 months to Q2 2026
- Cash conversion
- 1.68×
Cash conversion · 1.42× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −5.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 4.9% |
| FY2021 | 11% |
| FY2022 | 13% |
| FY2023 | 16% |
| FY2024 | 17% |
| FY2025 | 16% |
Details›
- Operating margin12 months to Q2 2026
- 15%
- Net margin12 months to Q2 2026
- 11%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $12.4B
- Free cash flow, trailing twelve months
- $1.57B
- Net income, trailing twelve months
- $1.42B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 94%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Restaurants
The closest names by size in the same industry