Chipotle Mexican Grill, Inc. (CMG) is a quick-service restaurant providing a focused menu of burritos, tacos, and salads. Chipotle’s income statements through operating income for two recent years are as follows (in thousands):

a. Prepare a vertical analysis of the two income statements. Round percentages to one decimal place.
b. Interpret the vertical analysis.

Transcribed Image Text:

Chipotle Mexican Grill, Inc. Income Statem ents For the Years Ended December 31 Year 2 Year 1 $ 5,586,369 $ 4,864,985 Revenues Expenses: $ (1,600,760) (1,326,079) Food, beverage, packing.. $(1,847,916) Labor.. (1,472,060) Rent (occupancy). General and administrative. (363,072) (347,123) (451,552) (375,460) Other... (1,007,811) $ (5,142,411) $ 443,958 (957,195) $ (4,606,617) $ 258,368 Total expenses... Operating income