What is your appraisal of Chipotle Mexican Grill's financial performance based on the data contained in case Exhibit 1? How well is the company doing financially? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Chipotle's recent financial performance. In addition to the ratios in Table 4.1, there are occasions when you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: CAGR % = [ending value + beginning value) 1 - 1 x 100 (where n=the number of year-to-year or period-to-period changes) Select "true" or "false" for each of the following statements concerning the data in case Exhibit 1. Use the key financial ratios in Chapter 4 to assist you in performing calculations to determine whether the statements are true or false. a. From the end of 2011 through the end of 2017, Chipotle's total revenues increased from $2.27 billion to $4.48 billion, equal to a Compound Average Growth Rate (CAGR) of 12.0%. True b. Chipotle's operating income increased to $763.6 million in 2015 from $350.6 million in 2011, equal to a CAGR of 21.5%, the drop-off between 2016-2017 was minimal. True c. Chipotle's operating profit margin was 17.0% in 2015 versus 17.3% in 2014, and 15.5% in 2011. The gain from 0.9% in 2016 to 6.0% in 2017 was reasonable. True d. Chipotle's net profit margin was 10.6% in 2015 versus 9.5% in 2011. The rebound to 3.9% in 2017 from the dismal 0.3% in 2016 confirms the company is still not doing well. True e. Average annual sales increases at Chipotle restaurants open at least 13 full calendar months were 11.2% in 2011, 16.8 % in 2014, 0.2% in 2015 (because of the sharp sales decline in Q4 of 2015), (20.4%) in 2016, and 6.4% in 2017. True f. Average annual sales for Chipotle restaurants were $2.42 million in 2015, down slightly from a peak of $2.47 million in 2014, but then dropped precipitously to $1.87 million in 2016, and rebounded slightly to $1.94 million in 2017. True g. Chipotle's current ratio of 3.18 in 2011 decreased to 2.91 in 2015, then to 1.85 in 2016, but climbed slightly to 2.50 in 2017. True h. Net income rose to $475.6 million in 2015 from $214.9 million in 2011, a CAGR of 22.0%. The drop-offs to $22.9 million in 2016 obviously was painful, the rebound to $176.3 million in 2017 was a clear signal that things were turning around for the better-just not as fast as one would hope. True i. Average sales per restaurant of $1.94 million in 2017 are far below the 2014 peak of $2.47 million per Chipotle location. True j. Net cash provided by operating activities climbed to $683.3 million in 2015 from $411.1 million in 2011, a CAGR of 13.5%, but net cash flow dropped to $349.2 million in 2016 and then rose to $4671 million in 2017. True What action recommendations would you make to CMG's new CEO, Brian Nicol, to help rejuvenate the company's growth and profitability? There are spaces for up to six action recommendations and supporting justifications. Each recommended action must be supported with convincing, analysis-based justifications founded on the relevant concepts and tools that apply to this case. a. Action Recommendation: Supporting Justification: b. Action Recommendation: Supporting Justification: What is your appraisal of Chipotle Mexican Grill's financial performance based on the data contained in case Exhibit 1? How well is the company doing financially? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Chipotle's recent financial performance. In addition to the ratios in Table 4.1, there are occasions when you will also need to calculate compound average growth rates (CAGR) for certain financial measures. The formula for calculating CAGR (in percentage terms) is as follows: CAGR % = [ending value + beginning value) 1 - 1 x 100 (where n=the number of year-to-year or period-to-period changes) Select "true" or "false" for each of the following statements concerning the data in case Exhibit 1. Use the key financial ratios in Chapter 4 to assist you in performing calculations to determine whether the statements are true or false. a. From the end of 2011 through the end of 2017, Chipotle's total revenues increased from $2.27 billion to $4.48 billion, equal to a Compound Average Growth Rate (CAGR) of 12.0%. True b. Chipotle's operating income increased to $763.6 million in 2015 from $350.6 million in 2011, equal to a CAGR of 21.5%, the drop-off between 2016-2017 was minimal. True c. Chipotle's operating profit margin was 17.0% in 2015 versus 17.3% in 2014, and 15.5% in 2011. The gain from 0.9% in 2016 to 6.0% in 2017 was reasonable. True d. Chipotle's net profit margin was 10.6% in 2015 versus 9.5% in 2011. The rebound to 3.9% in 2017 from the dismal 0.3% in 2016 confirms the company is still not doing well. True e. Average annual sales increases at Chipotle restaurants open at least 13 full calendar months were 11.2% in 2011, 16.8 % in 2014, 0.2% in 2015 (because of the sharp sales decline in Q4 of 2015), (20.4%) in 2016, and 6.4% in 2017. True f. Average annual sales for Chipotle restaurants were $2.42 million in 2015, down slightly from a peak of $2.47 million in 2014, but then dropped precipitously to $1.87 million in 2016, and rebounded slightly to $1.94 million in 2017. True g. Chipotle's current ratio of 3.18 in 2011 decreased to 2.91 in 2015, then to 1.85 in 2016, but climbed slightly to 2.50 in 2017. True h. Net income rose to $475.6 million in 2015 from $214.9 million in 2011, a CAGR of 22.0%. The drop-offs to $22.9 million in 2016 obviously was painful, the rebound to $176.3 million in 2017 was a clear signal that things were turning around for the better-just not as fast as one would hope. True i. Average sales per restaurant of $1.94 million in 2017 are far below the 2014 peak of $2.47 million per Chipotle location. True j. Net cash provided by operating activities climbed to $683.3 million in 2015 from $411.1 million in 2011, a CAGR of 13.5%, but net cash flow dropped to $349.2 million in 2016 and then rose to $4671 million in 2017. True What action recommendations would you make to CMG's new CEO, Brian Nicol, to help rejuvenate the company's growth and profitability? There are spaces for up to six action recommendations and supporting justifications. Each recommended action must be supported with convincing, analysis-based justifications founded on the relevant concepts and tools that apply to this case. a. Action Recommendation: Supporting Justification: b. Action Recommendation: Supporting Justification