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Chipotle

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Financial Analysis for Chipotle Mexican Grill, Inc. (CMG)

I chose to focus on Chipotle, Inc. because the corporate headquarters are here in the Denver area, and it is a great place to eat if you like quick, healthy, quality Mexican food. Not only is it a good place to get good food, it is also a good company to invest in. Chipotle has had amazing growth over the past decade, and are poised to continue the trend for the foreseeable future. Chipotle is in an industry that is known for its unethical and unhealthy food practices. They are in an industry that typically spends more money fighting government regulation than they do enforcing their own health standards. They are a publicly traded company that must produce growing profits in order to please their investors. They have done just that the past few years and look forward to the future with high hopes.
Chipotle’s gross profit margin for the 3rd quarter of its fiscal year 2012 is slightly higher from the same period last year. They reported $26.65 million in FY11 compared to $27.38 million for FY12. They also have increased both their net income and net sales from the same periods as one year ago. Chipotle has a quick ratio of 3.86 which shows that they have enough cash to cover their short-term obligations. Those are quick looks at how Chipotle has done in a few categories of their financial statements.
To take a closer look, I did a rough vertical analysis of the balance sheet and income statement for the year 2011. When the analysis was completed on their balance sheet, the majority of their assets were tied up in property, plant and equipment at just over 52% of their total assets. The next highest percentage of their total assets is cash and cash equivalents at just over 28%. Finishing out their assets were things like short-term investments, long-term investments, net receivables, and

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