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 $ 3,904,384 $ 4,501,223 Revenues Expenses: Food, beverage, packing. Labor.. Rent (occupancy) General and administrative. $ (1,365,580) (1,105,001) (293,636) (641,953) $ (1,503,835) (1,045,726) (262,412) (514,963) Other... Total expenses. Operating income (463,647) $ (3.869.817) (410,698) $ (3.737,634) $ 763,589 34,567