The return on equity ratio of Chipotle Mexican Grill in 2008 stands at 0.1320 and it increases in the year 2009 to 0.1912 and to a further increase in 2010 to 0.2364. This shows an improvement in the company’s performance, as it is indicates an increase in the rate of return on the shareholders equity that is going up steadily over the years.
More than often, the return on assets ratio gives a measure of effective and efficient utilization of assets in order to produce net profit. It therefore, allows the management an opportunity to enhance the utilization of resources around the company. Chipotle Mexican Grill return on assets in the year 2008 indicates a ratio of 0.3788 and thereafter an increase in the 2009 as the return on assets ratio rose to 0.4987 and a further increase in 2010 to 0.5094, indicating that there was an increase in the returns on the net profit from the assets, as they were effectively utilized (Grant, 2009).
As a restaurant that offers Mexican food, Chipotle Mexican Grill is considered to be the leading among its competitors in the United States market. This attributes are related to its ability to offer services that have got high level of integrity. More so, the services of Chipotle Mexican Grill is accredited as one that is of high quality and has outstanding reputation as a result, the company outshines the rest of its competitors who offer Mexican dishes as it is followed by Baja fresh Mexican grill (Allen, 2011). ...Show more