Chipotle Mexican Grill, Inc. (CMG) Income Statement

The deceleration is evident across the last ten quarters, with year-over-year growth halving from the mid-teens to single digits. This suggests that the company is maturing and that comparable sales are facing tougher comparisons. Investors should monitor whether new store openings and digital initiatives can sustain growth above the industry average.

The wide range in gross margin is unusual and likely due to accounting adjustments or one-time items, as the typical restaurant gross margin is around 25-30%. The 2026Q2 figure of 70.3% appears anomalous and may indicate a change in cost classification or a favorable commodity environment. This volatility warrants further investigation into the sustainability of such margins.

While revenue grew 9.3% year-over-year in 2026Q2, operating income grew at a slower pace, indicating that operating leverage is diminishing. SG&A expenses have been volatile, with a notable spike in 2026Q1. This may reflect increased investment in technology or labor costs, which could pressure margins if revenue growth continues to slow.

The high COGS percentages in 2025 quarters are likely due to a reclassification or one-time charges, as they are inconsistent with the rest of the data. SG&A has also fluctuated, with a peak of $204.6 million in 2024Q1. This suggests that cost management is a key area of focus, and any sustained increase in input costs could compress margins.

Since 2024Q2, both operating and net margins have trended downward, with operating margin falling to 17.0% by 2026Q2. This inflection point suggests that the company's cost structure has become less favorable, possibly due to increased labor costs or commodity inflation. The lasting impact is a lower profitability trajectory, which investors should factor into valuation.