Analyze Chipotle Mexican Grill

Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotles income statements for the end of two recent years are as follows:

Chipotle Mexican Grill, Inc. Income Statements For the Years Ended December 31 (in thousands)

Line Item Description	Year 2	Year 1
Revenue	$5,586,369	$4,864,985
Expenses:
Food, beverage, packing	$(1,847,916)	$(1,600,760)
Labor	(1,472,060)	(1,326,079)
Rent (occupancy)	(363,072)	(347,123)
General and administrative	(451,552)	(375,460)
Other	(1,007,811)	(957,195)
Total expenses	$(5,142,411)	$(4,606,617)
Operating income	$443,958	$258,368

Required:

a. Prepare a horizontal analysis of the two income statements. Round percentages to one decimal place.

Chipotle Mexican Grill, Inc. Income Statements For the Years Ended December 31 (in thousands)

Line Item Description	Year 2	Year 1	Increase/(Decrease) Amount	Increase/(Decrease) Percent
Revenue	$5,586,369	$4,864,985	$fill in the blank 1	fill in the blank 2%
Expenses:
Food, beverage, packing	$(1,847,916)	$(1,600,760)	$fill in the blank 3	fill in the blank 4%
Labor	(1,472,060)	(1,326,079)	fill in the blank 5	fill in the blank 6%
Rent (ocupancy)	(363,072)	(347,123)	fill in the blank 7	fill in the blank 8%
General and administrative	(451,552)	(375,460)	fill in the blank 9	fill in the blank 10%
Other	(1,007,811)	(957,195)	fill in the blank 11	fill in the blank 12%
Total expenses	$(5,142,411)	$(4,606,617)	$fill in the blank 13	fill in the blank 14%
	$443,958	$258,368	$fill in the blank 15	fill in the blank 16%

b. Revenue fill in the blank 1 of 9

decreasedincreased

in Year 2, while total expenses fill in the blank 2 of 9

decreasedincreased

. Food, beverage, packing expense and labor fill in the blank 3 of 9

decreasedincreased

, respectively. General and administrative expenses fill in the blank 4 of 9

decreasedincreased

, while rent and other expenses fill in the blank 5 of 9

decreasedincreased

, respectively. Since the fill in the blank 6 of 9

decreaseincrease

in total operating expenses was fill in the blank 7 of 9

moreless

than the increase in revenues, operating income fill in the blank 8 of 9

decreasedincreased

. Overall, Year 2