Total operating expenses

Operating income

Required:

a$.$ Prepare a vertical analysis of the operating income for the two years, Round percentages to one decimal place.

Chipotle Mexican Grill, Inc.

Operating Income $.$

For the Years Ended December $31$

$($in thousands$)$

b$.$ Based on the calculations above, which of the following statements are correct?

Operating income as a percent of revenues increased from Year $1$ to Year $2.$

All operating expenses decreased as a percent of revenues except general and administrative expenses, which increased slightly.

The biggest percentage decrease in operating expenses was in food, beverage, packing expense.

Overall, Chipotle Mexican Grill improved its operations from Year $1$ to Year $2$ by increasing revenues, decreasing total operating expenses, and increasing its profitability.

$2,3$ and $4$

$1,3$ and $4$

cAll of the above

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