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

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

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Chipotle Mexican Grill, Inc. Income Statements For the Years Ended December 31 (in thousands) Year 2 Year 1 $ 5,586,369 $ 4,864,985 Revenue . 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) $(4,606,617) Total expenses $(5,142,411) Operating income $ 443,958 $ 258,368