CHIPOTLE MEXICAN GRILL INCCMG

CHIPOTLE MEXICAN GRILL INC Segments Disclosure

10-KFiled Feb 4, 20263 min read
Segment Reporting
Segment information is prepared on the same basis that our CEO, who is our Chief Operating Decision Maker ("CODM"), manages our segments, evaluates financial results, and makes key operating decisions. We have one reportable operating segment: U.S.
The U.S. reportable operating segment is comprised of all 11 operating segments located in the United States, which we have aggregated to a single operating segment in consideration of the aggregation criteria set forth in ASC 280. All other operating segments, which comprise our operations in Canada, Europe and international partner-operated restaurants do not meet the quantitative thresholds for determining reportable segments.
The U.S. reportable segment derives its revenue from company-owned restaurants located in the United States, which serve a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads. No customer accounts for 10% or more of our revenues. The accounting policies of the U.S. reportable segment are the same as those described in Note 1. "Description of Business and Summary of Significant Accounting Policies". Our CODM uses income from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the U.S segment versus other parts of the Company. The CODM is not provided asset information by reportable segment as asset information is provided to the CODM on a consolidated basis.
The following tables present selected financial information with respect to our single reportable segment:
Year ended December 31,
U.S. segment202520242023
Food and beverage revenue$11,620,085$11,045,450$9,652,976
Delivery service revenue59,33266,28267,393
U.S. segment total revenue11,679,41711,111,7329,720,369
Reconciliation:
All other revenue(1)
246,184202,121151,280
Total consolidated revenue$11,925,601 $11,313,853 $9,871,649 
Year ended December 31,
202520242023
U.S. segment total revenue$11,679,417$11,111,732$9,720,369
Less:
Food, beverage and packaging3,433,7663,299,2952,853,651
Labor2,931,4652,741,5902,402,964
Occupancy606,900548,688491,757
Marketing361,357283,053261,358
Other operating costs, excluding marketing1,358,3981,254,5121,141,850
Depreciation and amortization328,490300,513282,521
Other segment items(2)
71,53455,48264,150
U.S. segment income from operations2,587,5072,628,5992,222,118
Reconciliation:
Corporate and other unallocated expenses(3)
660,428709,426657,134
Other income/(loss) from operations(4)
8,719(2,840)(7,171)
Interest and other income, net73,72193,89762,693
Total consolidated income before income taxes$2,009,519 $2,010,230 $1,620,506 
(1)All other revenue represents sales within our company-owned restaurants in Canada, Europe and royalty revenue from international partner-operated restaurants.
(2)Other segment items consist of pre-opening costs, impairment, closure costs, and asset disposals related to the U.S. segment.
(3)Corporate and other unallocated expenses represent corporate overhead expenses that have not been allocated to our reportable segment including general and administrative expenses.
(4)Amounts reflect the net income/(loss) from operations related to our operations in Canada, Europe and international partner-operated restaurants.
Our long-lived tangible assets, including our operating lease assets recognized on the consolidated balance sheets were located as follows:
December 31,
20252024
United States$6,934,590 $6,247,406 
International$207,781 $142,847 

Historical Timeline

Fiscal YearFiled
2025Feb 4, 2026Showing above
2024Feb 5, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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