Page 2 Schedule B Chipotle (FYE December 31) Balance Sheet (In Billions of USD) FYE 2017 EYE 2019 FE 2018 0.25 11.0% 0.01 0.02 0.54 0.81 1.38 0.02 1.0% 0.4% 0.05 Cash & Equivalents Total Receivables, Net Total Inventory Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Net Goodwill Other Long Term Assets, Net Total Assets Trade and Other Accounts Payable Other Current liabilities, Total Total Current Liabilities Long Term Operating Lease Liabilties Other Liabilities, Total Total Liabilities Total Stockholder Equity Total Liabilities & Stockholder Equity 0.48 0.01 0.03 0.56 1.07 1.46 0.02 2.55 5.10 0.12 0.55 0.67 2.68 0.08 3.42 1.68 5.10 0.18 9.0% 0.04 0.02 0.38 0.63 1.34 0.02 1.1% 0.06 2.05 0.08 0.24 0.32 0.00 NA 0.36 0.68 33.3% 1.36 2.05 2.27 0.11 0.34 0.45 0.00 NA 0.37 0.82 36.4% 1.44 2.27 52.5% 67.0% Schedule C - Financial Analysis Chipotle (FYE December 31) FYE 2019 EYE 2018 EYE 2017 Page 3 Three-Year Average Gross Profit Total Revenue Gross Profit Margin 3.26 4.86 67.1% 2.94 4.48 65.7% 66.6% Net Income Total Revenue Net Profit Margin 0.35 5.59 6.3% 0.18 4.86 3.6% 0.18 4.48 3.9% 4.6% Net Income Total Stockholder Equity Return on Equity 0.35 1.68 20.8% 0.18 1.44 12.2% 0.18 1.36 12.9% 15.3% Net Income Total Assets Return on Assets 0.18 2.27 7.8% 0.18 2.05 8.6% 7.8% Cost of Revenues Inventory Inventory Turnover 1.60 0.02 74.26 1.54 0.02 77.31 74.13 Total Current Assets Total Current Liabilities Current Ratio 0.81 0.45 1.81 0.63 0.32 1.94 1.79 IN Total Liabilities Total Assets Debt to Asset Ratio 0.82 2.27 36.4% 0.68 2.05 33.3% 45.6% Page 4 Schedule D - Breakeven Analysis Chipotle (FYE December 31) 1. What is your contribution margin for FYE 2019? For our purposes, use the gross profit margin. 0.08 2. What is the cost of your recommendation (in US Billions)? For example, $80 million = $0.08 billion. 3. Divide the recommendation cost with your contribution margin. This is your breakeven sales amount. 4. What is your total revenues for FYE 2019 (in US Billions)? 5. Divide the breakeven sales amount with FYE 2019 revenues (This is required sales increase to b/e). 6. What is the average growth in sales from FYE 2016 thru FYE 2019? 7. Does the required increase in sales to b/e make sense in light of past growth in sales? YES NOTE: You do not have to complete this page. We will review the concept of breakeven analysis during this math exercise during the Zoom call. NO Zoom call and complete CYE 2019 CHERI CHEAP Schedule Chipotle (FY December 31) Income Statement Billions of USD Net ne Cost of Revenue & Packaging Gross Profit Labor Couts Other penes Total Operating en Operating income Othe Net Income 14 1 34 14) NEN 1 3. 101 02 35 018 complete the page of the handout. Reestrom 2018 2019 Schedule A Chipotle (FYE December 31) Income Statement (In Billions of USD) Page 1 CYE 2019 CYE 2018 CYE 2017 5.59 1.85 3.74 1.47 65.7% Net Revenue Cost of Revenue (F&B & Packaging) Gross Profit Labor Costs Other Expenses Total Operating Expense Operating Income Other, Net Net Income 4.86 1.60 3.26 67.1% 1.33 0.18 3.01 0.26 (0.08) 0.18 3.6% 4.48 1.54 2.94 1.21 0.12 2.67 0.27 (0.09) 0.18 3.29 0.44 (0.09) 0.35 3.9% Growth Trends Revenues from 2018 to 2019 Revenues from 2017 to 2018 Revenues from 2016 to 2017 8.7% 14.7% Page 2 Schedule B Chipotle (FYE December 31) Balance Sheet (In Billions of USD) FYE 2017 EYE 2019 FE 2018 0.25 11.0% 0.01 0.02 0.54 0.81 1.38 0.02 1.0% 0.4% 0.05 Cash & Equivalents Total Receivables, Net Total Inventory Other Current Assets, Total Total Current Assets Property/Plant/Equipment, Net Goodwill Other Long Term Assets, Net Total Assets Trade and Other Accounts Payable Other Current liabilities, Total Total Current Liabilities Long Term Operating Lease Liabilties Other Liabilities, Total Total Liabilities Total Stockholder Equity Total Liabilities & Stockholder Equity 0.48 0.01 0.03 0.56 1.07 1.46 0.02 2.55 5.10 0.12 0.55 0.67 2.68 0.08 3.42 1.68 5.10 0.18 9.0% 0.04 0.02 0.38 0.63 1.34 0.02 1.1% 0.06 2.05 0.08 0.24 0.32 0.00 NA 0.36 0.68 33.3% 1.36 2.05 2.27 0.11 0.34 0.45 0.00 NA 0.37 0.82 36.4% 1.44 2.27 52.5% 67.0% Schedule C - Financial Analysis Chipotle (FYE December 31) FYE 2019 EYE 2018 EYE 2017 Page 3 Three-Year Average Gross Profit Total Revenue Gross Profit Margin 3.26 4.86 67.1% 2.94 4.48 65.7% 66.6% Net Income Total Revenue Net Profit Margin 0.35 5.59 6.3% 0.18 4.86 3.6% 0.18 4.48 3.9% 4.6% Net Income Total Stockholder Equity Return on Equity 0.35 1.68 20.8% 0.18 1.44 12.2% 0.18 1.36 12.9% 15.3% Net Income Total Assets Return on Assets 0.18 2.27 7.8% 0.18 2.05 8.6% 7.8% Cost of Revenues Inventory Inventory Turnover 1.60 0.02 74.26 1.54 0.02 77.31 74.13 Total Current Assets Total Current Liabilities Current Ratio 0.81 0.45 1.81 0.63 0.32 1.94 1.79 IN Total Liabilities Total Assets Debt to Asset Ratio 0.82 2.27 36.4% 0.68 2.05 33.3% 45.6% Page 4 Schedule D - Breakeven Analysis Chipotle (FYE December 31) 1. What is your contribution margin for FYE 2019? For our purposes, use the gross profit margin. 0.08 2. What is the cost of your recommendation (in US Billions)? For example, $80 million = $0.08 billion. 3. Divide the recommendation cost with your contribution margin. This is your breakeven sales amount. 4. What is your total revenues for FYE 2019 (in US Billions)? 5. Divide the breakeven sales amount with FYE 2019 revenues (This is required sales increase to b/e). 6. What is the average growth in sales from FYE 2016 thru FYE 2019? 7. Does the required increase in sales to b/e make sense in light of past growth in sales? YES NOTE: You do not have to complete this page. We will review the concept of breakeven analysis during this math exercise during the Zoom call. NO Zoom call and complete CYE 2019 CHERI CHEAP Schedule Chipotle (FY December 31) Income Statement Billions of USD Net ne Cost of Revenue & Packaging Gross Profit Labor Couts Other penes Total Operating en Operating income Othe Net Income 14 1 34 14) NEN 1 3. 101 02 35 018 complete the page of the handout. Reestrom 2018 2019 Schedule A Chipotle (FYE December 31) Income Statement (In Billions of USD) Page 1 CYE 2019 CYE 2018 CYE 2017 5.59 1.85 3.74 1.47 65.7% Net Revenue Cost of Revenue (F&B & Packaging) Gross Profit Labor Costs Other Expenses Total Operating Expense Operating Income Other, Net Net Income 4.86 1.60 3.26 67.1% 1.33 0.18 3.01 0.26 (0.08) 0.18 3.6% 4.48 1.54 2.94 1.21 0.12 2.67 0.27 (0.09) 0.18 3.29 0.44 (0.09) 0.35 3.9% Growth Trends Revenues from 2018 to 2019 Revenues from 2017 to 2018 Revenues from 2016 to 2017 8.7% 14.7%