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Chipotle Mexican Grill, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 1 $ 3,904,384 $ 4.501,223 Revenue Expenses: Food, beverage, packing Labor... Rent (occupancy).. $(1,365,580) S(1,503,835) (1,105,001) (1,045,726) (293,636) (262,412) General and administrative (641,953) (514,963) Other... (463,647) (410,698) Total expenses $(3,869,817) $(3,737,634) Operating income 34,567 $ 763,589

Chipotle Mexican Grill, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 1 $ 3,904,384 $ 4.501,223 Revenue Expenses: Food, beverage, packing Labor... Rent (occupancy).. $(1,365,580) S(1,503,835) (1,105,001) (1,045,726) (293,636) (262,412) General and administrative (641,953) (514,963) Other... (463,647) (410,698) Total expenses $(3,869,817) $(3,737,634) Operating income 34,567 $ 763,589

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chipotle Mexican Grill, Inc. (CMG) is a  quick-service restaurant providing  a focused menu of burritos, tacos, and salads. Chipotle's income statements for the end of two recent years are as follows:

a. Prepare a horizontal analysts of the two income statements. Round percentages to one decimal place.
b. Interpret the horizontal analysis.
c. Can you think of a reason why Chipotle's revenues and operating income may have decreased so significantly in Year 2?

Chipotle Mexican Grill, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 1 $ 3,904,384 $ 4.501,223 Revenue Expenses: Food, beverage, packing Labor... Rent (occupancy).. $(1,365,580) S(1,503,835) (1,105,001) (1,045,726) (293,636) (262,412) General and administrative (641,953) (514,963) Other... (463,647) (410,698) Total expenses $(3,869,817) $(3,737,634) Operating income 34,567 $ 763,589
Transcribed Image Text:Chipotle Mexican Grill, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 1 $ 3,904,384 $ 4.501,223 Revenue Expenses: Food, beverage, packing Labor... Rent (occupancy).. $(1,365,580) S(1,503,835) (1,105,001) (1,045,726) (293,636) (262,412) General and administrative (641,953) (514,963) Other... (463,647) (410,698) Total expenses $(3,869,817) $(3,737,634) Operating income 34,567 $ 763,589
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