I need to update this report for years 2011-2015 ( delete 2010 and add 2015)and change the format so pro can't recognize it from last time. you can look up the info online and I can attach the spreadsheet for any data may need

Chipotle Mexican Grill Inc. (CMG) Alghamdi Ahlam - November 22, 2015 CHIPOTLE MEXICAN GRILL INC, 1 Introduction Chipotle Mexican Grill is chain restaurants in the U.S, U.K, Canada, Germany and France founded in 1993 by Steve Ells in Denver, Colorado. The initial idea to establish this chain was providing fast food with good ingredient. The company has released a mission statement called Food with Integrity. Chipotle had 16 restaurants (all in Colorado) when McDonald's Corporation became a major investor in 1998. By the time McDonald's fully divested itself from Chipotle in 2006,the chain had grown to over 500 locations. In fall 2015, Chipotle expanded its mobile strategy through delivery partnerships with tech startups like Tapingo, a delivery service that targets college campuses. With more than 1700 locations, Chipotle had a net income in 2013 of US$327.4 million and a staff of more than 45,000 employees as reported in a 2015 CNN Money syndicated report via WTVR. First store McDonald's and chipotle Food With Integrity Chipotle's food services Chipotle Mexican Grill (CMG) serves burritos, burrito bowls, soft and crispy tacos, and salads. It oers sides such as chips and guacamole and serves a variety of beverages. The company oers catering services in addition to onpremise selling at its restaurants. In this series, we'll look at Chipotle Mexican Grill's revenues and same-store sales. We'll see why Chipotle has been successfully growing sales and unit growth, and we'll find out how Chipotle is funding its unit growth and how its stock has performed over the years. Through this series, you'll better understand your investment in Chipotle Mexican Grill. CHIPOTLE MEXICAN GRILL INC, 2 Stock of Chipotle: The Stock for Chipotle did not change more than 2% in last five years, which means the share outstanding was steady for the last five years. Year Share Outstanding 2010 31.23M 2011 31.22M 2012 31.52M 2013 30.96M 2014 31.04M The Highly Paid Group: Here is the list of five highly paid employee in Chipotle Mexican Grill Inc.: 1. Steve Ellis: Mr. Ells founded Chipotle in 1993. He is Co-Chief Executive Officer and was appointed Chairman of the Board in 2005. Prior to launching Chipotle, Mr. Ells worked for two years at Stars restaurant in San Francisco. Mr. Ells's visionthat food served fast doesn't have to be low quality and that delicious food doesn't have to be expensiveis the foundation on which Chipotle is based. This visionary thinking has led to Chipotle accomplishing great things, such as growing from a single restaurant to over 1,400 in just 20 years, and serving more naturally-raised meat than any other restaurant company. This thinking has also resulted in Mr. Ells remaining a principal driving force behind making our company innovative and striving for constant improvement, and he continues to provide important leadership to our executive officers, management team, and Board of Directors. He is also one of the largest individual shareholders of our company. Mr. Ells graduated from the University of Colorado with a Bachelor of Arts degree in art history, and is also a 1990 Culinary Institute of America graduate. 2. Montgomery F. (Monty) Moran: Mr. Moran is our Co-Chief Executive Officer. He was appointed to this position on January 1, 2009, after serving as President and Chief Operating Officer since March 2005. Mr. Moran previously served as chief executive officer of the Denver law firm Messner & Reeves, LLC, where he was employed since 1996, and as general counsel of Chipotle. His experience as our general counsel from the time we had only a few restaurants through our growth to several hundred restaurants at the time he joined us, has given him an in-depth knowledge and understanding of every aspect of our business. His legal experience ran from trial and employment matters to real estate and other transactional matters, as well as general corporate counseling. As a result he has an outstanding skill set in such areas as risk management and crisis handling, and also is thoroughly familiar with management personnel throughout our organization. In CHIPOTLE MEXICAN GRILL INC, 3 addition, Mr. Moran was the visionary and creator of our Restaurateur program and other aspects of instilling a culture of high performers throughout Chipotle, and his leadership in this area has been critical to our success. Mr. Moran holds a Bachelor of Arts degree in communications from the University of Colorado and a J.D., cum laude, from Pepperdine University School of Law. 3. John R. (Jack) Hartung: is Chief Financial Officer and has served in this role since 2002. In addition to having responsibility for all of our financial and reporting functions, Mr. Hartung also oversees IT; safety, security and risk; and compensation and benefits. Mr. Hartung joined Chipotle after spending 18 years at McDonald's where he held a variety of management positions, most recently as Vice President and Chief Financial Officer of its Partner Brands Group. Mr. Hartung has a Bachelor of Science degree in accounting and economics as well as an MBA from Illinois State University. 4. Robert (Bob) N. Blessing Jr.: He was appointed Chief Development Officer as of February 1, 2010. Mr. Blessing came to Chipotle in 1999 as a regional director, and opened our first restaurant in the Northeast region. His role expanded thereafter to include responsibility for additional markets, and from 2005 to 2008 he led our entire Northeast and Central regions. From May 2008 though February 1, 2010, he served as our Restaurant Support Officer, providing field support for our marketing as well as overseeing our five regional directors and our purchasing function. Before coming to Chipotle, he served in executive leadership roles at a number of food service and restaurant companies, including Vie de France Retail and Restaurant Bakery, Franchise Management Corporation (an Arby's franchisee), and Thompson Hospitality (a contract food service company). Mr. Blessing has Bachelors and Masters degrees in business administration/ economics from the University of Cincinnati. Bob Blessing has announced that he will retire as Chief Development Officer of Chipotle Mexican Grill, Inc., effective October 31, 2013. Leadership of Chipotle's development activities will be assumed by Mark Crumpacker, Chief Marketing Officer, whose title will change to Chief Marketing and Development Officer. In connection with his new role, Mr. Crumpacker will receive adjustments to his compensation in amounts to be determined at a later date. 5. Mark Crumpacker: He was appointed Chief Marketing Officer in January 2009 and as Chief Development Officer in October 2013, and on March 12, 2015, his title was changed to Chief Creative and Development Officer. From December 2002 until December 2008 Mr. Crumpacker was Creative Director for Sequence, LLC, a strategic design and marketing consulting firm he co-founded in 2002, and prior to that served as creative director and in other leadership roles for a variety of design and media companies. Mr. Crumpacker attended the University of Colorado and received his B.F.A. from the Art College of Design in Pasadena, California. From this list we could conclude that except Mr. Blessing retirement there was no changes in the top executive of Chipotle in the past five years. The table below shows the salary for each one in past five years: CHIPOTLE MEXICAN GRILL INC, 4 Name and Principal Position Year Salary Stock Awards Option Awards Non-Equity Incentive Pl anCompens ation All Other Compensatio n Total Steve Ells Chairman and Co-Chief Executive Officer 2014 1400000 23698500 3570000 255770 28924270 2013 1400000 7961250 12304500 3196816 254305 25116871 2012 1380769 15742500 2404864 213163 19741296 2011 1280769 15286500 2652000 172302 19391571 2010 1180769 4400800 5902500 2448000 163801 14095870 2014 1200000 23698500 3060000 194702 28153203 2013 1200000 7961250 12304500 2740128 191176 24397054 2012 1180769 15742500 2061312 161869 19146450 2011 1080769 15286500 2244000 148458 18759728 2010 971154 4400800 5902500 2040000 135052 13449506 2014 700000 8125200 1213800 206842 10245842 2013 645719 3980625 4101500 975501 179004 9882349 2012 597888 5247500 781402 169267 6796057 2011 553600 5095500 859248 147656 6656004 2010 510385 2200400 1967500 795600 146654 5620539 2014 2013 2012 394972 1679200 287207 98802 2460181 2011 366962 1630560 393446 78987 2469955 2010 345192 605110 629600 370286 98415 2048603 2014 500000 4062600 663000 109591 5335191 2013 402580 3184500 1692400 506328 107054 5892862 2012 354517 1679200 308888 110995 2453600 2011 328961 1426740 339660 78927 2174288 2010 309692 605110 511550 301860 78273 1806485 Monty Moran Co-Chief Executive Officer Jack Hartung Chief Financial Officer Bob Blessing Chief Development Officer Mark Crumpacker Chief Marketing Officer CHIPOTLE MEXICAN GRILL INC, 5 The table below shows the percentage between compensation to five highest paid employees and pre-tax income: year Compensation to five highest-paid employees Pre- tax incom percentage 2014 72658506 714,303,000.00 9.2% 2013 65289136 534,471,000.00 10.9% 2012 50597584 457,685,000.00 10.0% 2011 49451546 349,705,000.00 12.4% 2010 37021003 289,061,000.00 11.4% The Risks: While Chipotle has created a revolutionary strategy, it has a few risks and setbacks. 1. The risk with the philosophy of \"Our Food With Integrity\": Chipotle's tactic to competing in the restaurant industry depends in large part on the ability to adhere to the principle of Food With Integrity. That means they anticipate a substantial amount of naturally raised and sustainably grown ingredients, and aim to make their food as fresh as they can to keep that philosophy on. It is not easy to do all that in light of pricing considerations. The big challenge they faced is It can take longer to identify and secure relationships with suppliers meeting their criteria, and there are higher costs and other risks associated with purchasing naturally raised or sustainably grown ingredients. The growth process for naturally raised meat and sustainably grown vegetables is longer. Herd losses can also be greater when animals are not treated with antibiotics and hormones. Moreover, due to decreased demand as a result of the weak economic environment, many large suppliers have not found it economical to pursue business in this area. They expect shortages of naturally raised chicken during the first half of 2010 due to a supplier suspending production. Furthermore, as they increase their use of these ingredients, the ability of their suppliers to expand output or otherwise increase supplies to meet their needs may be constrained. 2. The effect of new restaurants on old restaurant: the new restaurants, once opened, may not be profitable, and may adversely impact the sales of our existing restaurants. If they are incapable to build the customer base that they expect for new restaurant locations or overcome the higher fixed costs associated with new restaurant locations, new restaurants may not have similar results as their existing restaurants and may not be profitable. They also have lowered the average development cost of their new restaurants significantly in recent years, from $916,000 in 2008 to $850,000 in 2009, and expect additional decreases in 2010. In the event we are not able to achieve the average development costs they expect CHIPOTLE MEXICAN GRILL INC, 6 for 2010 or sustain the benefits achieved in prior years, which could result from inflation, project mismanagement or other reasons, their new restaurant locations could also result in decreased profitability. In addition, their average restaurant sales declined and comparable restaurant sales decelerated during 2009, and if these trends continue as a result of ongoing economic uncertainty or otherwise, the ramp up period for new restaurants may be longer, adversely impacting our overall financial results. If for any of these reasons new restaurants do not perform as planned or adversely impact our profitability, the price of our common stock is likely to decline. The expansion into new markets may present increased risks due to their unfamiliarity with those areas. 3. Commodity Price Risks: They are exposed to commodity price risks. Many of the ingredients they use to prepare their food, as well as their packaging materials, are commodities or ingredients that are affected by the price of other commodities, exchange rates, foreign demand, weather, seasonality, production, availability and other factors outside our control. They work closely with their suppliers and use a mix of forward pricing protocols under which they agree with their supplier on fixed prices for deliveries at some time in the future. Generally their pricing protocols with suppliers can remain in effect for periods ranging from one to 18 months, depending on the outlook for prices of the particular ingredient. In several cases, they have minimum purchase obligations. They have tried to increase, where necessary, the number of suppliers for our ingredients, which they think can help alleviate pricing volatility, and they follow industry news, trade issues, exchange rates, foreign demand, weather, crises and other world events that may affect their ingredient prices. Increases in ingredient prices could adversely affect the results if they choose not to increase menu prices at the same pace for competitive or other reasons. 4. Foreign Currency Exchange Risk: A portion of activities outside of the U.S. could lead to currency risk on the transactions in other currencies and translation adjustments resulting from the conversion of our international financial results into the U.S. dollar. despite the fact that they have foreign operations, the majority of their operations and investment activities are transacted in the U.S. and therefore their foreign currency risk is limited at this date. Chipotle's State in Restaurant Industry: In general, Chipotle is the 24th most innovative companies in the world with 22.5% sales growth in past 12 months according to Forbes. In restaurant industry, Chipotle is one of the leaders of fast-casual quick-service and casual dining. According to a segment report from consumer research firm Market Force Information, Chipotle is favorite Mexican restaurant chain in the U.S. That survey from 7600 people from around United States. The next tables will illustrate the results. CHIPOTLE MEXICAN GRILL INC, 7 Favorite Fast-Casual Mexican Chains by Region Chipotle's Competition: The fast-casual, quick-service and casual dining segments of the restaurant industry are highly competitive with respect to, among other things, taste, price, food quality and presentation, service, location, and the ambience and condition of each restaurant. Our competition includes a variety of restaurants in each of these segments, including locallyowned restaurants and national and regional chains. Many of our competitors offer dine-in, CHIPOTLE MEXICAN GRILL INC, 8 carry-out and delivery services. Among our main competitors are a number of multi-unit, multi-market Mexican food or burrito restaurant concepts, some of which are expanding nationally. Unlike Chipotle, a number of our competitors grow through franchising. Several of our competitors compete by offering menu items that are specifically identified as lower in fat, carbohydrates, or calories or otherwise better for customers, or targeted at particular dietary preferences. Many of our competitors in the fast-casual and quick-service segment of the restaurant industry also emphasize lower-cost, \"value meal\" menu options, a strategy we do not currently pursue. Moreover, we may also compete with companies outside the fast casual and quick service and casual dining segments of the restaurant industry. For example, competitive pressures can come from deli sections and in-store cafs of major grocery store chains, including those targeted at customers who seek higher-quality food, as well as from convenience stores, cafeterias and other dining outlets. These competitors may have, among other things, a more diverse menu, lower operating costs, better locations, better facilities, better management, more effective marketing and more efficient operations than we do. For more information, see \"Risks Related to Operating in the Restaurant IndustryCompetition could adversely affect us\" in Item 1A. \"Risk Factors.\" We believe we are well-positioned to continue to grow our market position in existing and new markets given current consumer trends, including increasing awareness and concern among consumers about what they eat and how it is prepared as well as the increasing prevalence of the fast-casual segment. Some of our competitors have formats that might resemble ours, but we believe that Chipotle has become one of the most recognized restaurants in the U.S. We also believe we are known for our focus on having teams of topperforming employees using classic cooking techniques to prepare food made from highquality whole ingredients in an open restaurant kitchen to create delicious food, as well as our commitment to \"Food With Integrity.\" We think this unique combination adds up to an excellent customer experience in our restaurants, which we believe represents a significant competitive advantage in the segment in which we operate. Seasonality Seasonal factors cause our profitability to fluctuate from quarter to quarter. Historically, Chipotle average daily restaurant sales and profits are lower in the first and fourth quarters due, in part, to the holiday season and because fewer people eat out during periods of inclement weather (the winter months) than during periods of mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on our results. For example, restaurants located near colleges and universities generally do more business during the academic year. CHIPOTLE MEXICAN GRILL INC, 9 First Quarter in Past Five Years: The first quarter is steadily increase year by year except a few factors. From following tables we could easily observe that decreased factors. First, Pre-opening income in first quarter of 2012 less than the first quarter of 2011. Second, there was a decrease in loss on disposal of assets on first quarter of 2012. Third, in first quarter of 2013, the general and administrative expenses and the interest and other income net decreased because the Company maintains a rabbi trust to fund obligations under a deferred compensation plan. Amounts in the rabbi trust are invested in mutual funds, which are designated as trading securities and carried at fair value, and are included in other assets in the consolidated balance sheet. Quarters Ended in 31-Mar (in thousands, except per share data) 2010 2011 2012 2013 1)Revenue 409686 509384 640603 726751 2)Restaurant operating costs (exclusive of depreciation and amortization shown separately below): 3)Cost of goods sold 319425 399390 485347 558270 4)General and administrative expenses 26194 32216 49334 44211 5)Pre-opening costs 1502 1296 2448 2886 6)Loss on disposal of assets 1269 1661 1250 1340 7)Total operating expenses 348390 434563 538379 606707 8)Operating Income or Loss 61296 74821 102224 120044 9)Interest and other income (expense), net 196 287 434 266 10)Income before income taxes 61492 75108 102658 120310 11)Provision for income taxes -23645 -28726 -39994 -43726 12)Net income 37847 46382 62664 76584 CHIPOTLE MEXICAN GRILL INC, 2014 904163 695737 66917 4300 1559 768513 135650 689 136339 -53270 83069 10 Quarters Ended in 31-Mar (Percentage) 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011 % inc-dec 2012 % inc-dec 2013 100.00% 100.00% 24.34% 100.00% 25.76% 100.00% % inc% inc2014 dec dec 13.45% 100.00% 24.41% 77.97% 6.39% 0.37% 0.31% 85.04% 14.96% 0.05% 15.01% -5.77% 9.24% 78.41% 6.32% 0.25% 0.33% 85.31% 14.69% 0.06% 14.74% -5.64% 9.11% 25.03% 22.99% -13.72% 30.89% 24.73% 22.07% 46.43% 22.14% 21.49% 22.55% 75.76% 7.70% 0.38% 0.20% 84.04% 15.96% 0.07% 16.03% -6.24% 9.78% 21.52% 53.14% 88.89% -24.74% 23.89% 36.62% 51.22% 36.68% 39.23% 35.10% 76.82% 6.08% 0.40% 0.18% 83.48% 16.52% 0.04% 16.55% -6.02% 10.54% 15.02% -10.38% 17.89% 7.20% 12.69% 17.43% -38.71% 17.19% 9.33% 22.21% Quarters Ended in 31-Mar 750000 500000 250000 0 2010 2011 2012 2013 24.62% 51.36% 49.00% 16.34% 26.67% 13.00% 159.02% 13.32% 21.83% 8.47% Revenue Cost of good sold General and administrative expenses Pre-opening costs Loss on disposal of assets Total operating expenses Operating Income or Loss Interest and other income (expense), net Income before income taxes Provision for income taxes Net income 1000000 -250000 76.95% 7.40% 0.48% 0.17% 85.00% 15.00% 0.08% 15.08% -5.89% 9.19% 2014 Second Quarter in Past Five Years: The Second quarter is steadily increase year by year except a few factors. According to Chipotle 10-k form, there was a decrease in the pre-opening account andLoss on disposal of assets in the second quarter of 2011 and 2013. In addition, there was a decrease in the interest in the second quarter of 2011 due to investment in ANGR Holdings, LLC, which operated the restaurants awarded on the television program America's Next Great Restaurant.There was also decrease in the interest in 2012 because of a loss recognized in the second quarter of 2011 on an investment. In 2013, there was a decrease in the interest too, but this time because they exposed to interest rate risk through fluctuations of interest rates on their investments. Changes in interest rates affect the interest income. CHIPOTLE MEXICAN GRILL INC, 11 Quarters Ended in 30-Jun (in thousands, except per share data) 2010 2011 2012 1)Revenue 466841 571561 690932 2)Restaurant operating costs (exclusive of depreciation and amortization shown separately below): 3)Cost of goods sold 358505 442747 510066 4)General and administrative expenses 30141 41968 42295 5)Pre-opening costs 1724 1606 3306 6)Loss on disposal of assets 1512 1377 1475 7)Total operating expenses 391882 487698 557142 8)Operating Income or Loss 74959 83863 133790 9)Interest and other income (expense), net 342 -2006 377 10)Income before income taxes 75301 81857 134167 11)Provision for income taxes -28840 -31200 -52484 12)Net income 46461 50657 81683 2013 816786 2014 1050073 614771 50952 3246 1399 670368 146418 330 146748 -58895 87853 790358 74879 3392 1602 870231 179842 1144 180986 -70716 110270 Quarters Ended in 30-Jun (Percentage) 1 2 3 4 5 6 7 8 9 10 11 12 2010 100.00% 2011 100.00% % inc-dec 22.43% 2012 100.00% % inc-dec 20.89% 2013 100.00% % inc-dec 18.22% 2014 100.00% % inc-dec 28.56% 76.79% 6.46% 0.37% 0.32% 83.94% 16.06% 0.07% 16.13% -6.18% 9.95% 77.46% 7.34% 0.28% 0.24% 85.33% 14.67% -0.35% 14.32% -5.46% 8.86% 23.50% 39.24% -6.84% -8.93% 24.45% 11.88% -686.55% 8.71% 8.18% 9.03% 73.82% 6.12% 0.48% 0.21% 80.64% 19.36% 0.05% 19.42% -7.60% 11.82% 15.20% 0.78% 105.85% 7.12% 14.24% 59.53% -118.79% 63.90% 68.22% 61.25% 75.27% 6.24% 0.40% 0.17% 82.07% 17.93% 0.04% 17.97% -7.21% 10.76% 20.53% 20.47% -1.81% -5.15% 20.32% 9.44% -12.47% 9.38% 12.22% 7.55% 75.27% 7.13% 0.32% 0.15% 82.87% 17.13% 0.11% 17.24% -6.73% 10.50% 28.56% 46.96% 4.50% 14.51% 29.81% 22.83% 246.67% 23.33% 20.07% 25.52% CHIPOTLE MEXICAN GRILL INC, 12 Quarters Ended in 30-Jun 1200000 Revenue Cost of good sold General and administrative expenses Pre-opening costs Loss on disposal of assets Total operating expenses Operating Income or Loss Interest and other income (expense), net Income before income taxes Provision for income taxes Net income 900000 600000 300000 0 -300000 2010 2011 2012 2013 2014 Third Quarter in Past Five Years: The Third quarter is steadily increase year by year except a few factors. The loss on disposal of assets was decreased in the third quarter of 2011 and 2014. In 2014, beside the decrease of loss on disposal of assets, there was a decrease in pre-opening cost. Quarters Ended in 30-Sep (in thousands, except per share data) 2010 2011 2012 2013 1)Revenue 476874 591854 700528 826907 2)Restaurant operating costs (exclusive of depreciation and amortization shown separately below): 3)Cost of goods sold 362314 452864 530088 630018 4)General and administrative expenses 33522 37254 48606 52726 5)Pre-opening costs 1943 2448 2772 4604 6)Loss on disposal of assets 1511 1278 1399 2405 7)Total operating expenses 399290 493844 582865 689753 8)Operating Income or Loss 77584 98010 117663 137154 9)Interest and other income (expense), net 381 448 547 765 10)Income before income taxes 77965 98458 118210 137919 11)Provision for income taxes -29737 -38025 -45910 -54540 12)Net income 48228 60433 72300 83379 CHIPOTLE MEXICAN GRILL INC, 2014 1084222 800179 71172 3829 1606 876786 207436 785 208221 -77420 130801 13 Quarters Ended in 30-Sep (Percentage) 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011 100.00% 100.00% %inc-dec 24.11% 2012 100.00% %inc-dec 18.36% 2013 100.00% %inc-dec 18.04% 2014 100.00% %inc-dec 31.12% 75.98% 7.03% 0.41% 0.32% 83.73% 16.27% 0.08% 16.35% -6.24% 10.11% 24.99% 11.13% 25.99% -15.42% 23.68% 26.33% 17.59% 26.28% 27.87% 25.31% 75.67% 6.94% 0.40% 0.20% 83.20% 16.80% 0.08% 16.87% -6.55% 10.32% 17.05% 30.47% 13.24% 9.47% 18.03% 20.05% 22.10% 20.06% 20.74% 19.64% 76.19% 6.38% 0.56% 0.29% 83.41% 16.59% 0.09% 16.68% -6.60% 10.08% 18.85% 8.48% 66.09% 71.91% 18.34% 16.57% 39.85% 16.67% 18.80% 15.32% 73.80% 6.56% 0.35% 0.15% 80.87% 19.13% 0.07% 19.20% -7.14% 12.06% 27.01% 34.98% -16.83% -33.22% 27.12% 51.24% 2.61% 50.97% 41.95% 56.88% 76.52% 6.29% 0.41% 0.22% 83.44% 16.56% 0.08% 16.64% -6.42% 10.21% Quarters Ended in 30-Sep 1200000 Revenue Cost of good sold General and administrative expenses Pre-opening costs Loss on disposal of assets Total operating expenses Operating Income or Loss Interest and other income (expense), net Income before income taxes Provision for income taxes Net income 900000 600000 300000 0 -300000 2010 2011 2012 2013 2014 Fourth Quarter in Past Five Years: The Fourth quarter is steadily increase year by year except a few factors. The loss on disposal of assets was decreased in the fourth quarter of 2011 and 2012, and a decrease in pre-opening cost in 2014. In addition, there was decrease of interest and other income in the fourth quarter of 2013 because they exposed to interest rate risk through fluctuations of interest rates on their investments. Changes in interest rates affect the interest income. CHIPOTLE MEXICAN GRILL INC, 14 Quarters Ended in 31-Dec (in thousands, except per share data) 2010 2011 2012 2013 1)Revenue 482521 596749 699161 844147 2)Restaurant operating costs (exclusive of depreciation and amortization shown separately below): 3)Cost of goods sold 375194 460258 549513 652817 4)General and administrative expenses 28733 37988 43174 55844 5)Pre-opening costs 2598 3145 3383 4775 6)Loss on disposal of assets 2004 1490 903 1607 7)Total operating expenses 408529 502881 596973 715043 8)Operating Income or Loss 73992 93868 102188 129104 9)Interest and other income (expense), net 311 414 462 390 10)Income before income taxes 74303 94282 102650 129494 11)Provision for income taxes -27858 -36809 -41297 -49872 12)Net income 46445 57473 61353 79622 2014 1069811 814713 60929 4088 2209 881939 187872 885 188757 -67523 121234 Quarters Ended in 31-Dec (Percentage) 1 2 3 4 5 6 7 8 9 10 11 12 2010 2011 100.00% 100.00% %inc-dec 23.67% 2012 100.00% %inc-dec 17.16% 2013 100.00% %inc-dec 20.74% 2014 100.00% %inc-dec 26.73% 77.76% 5.95% 0.54% 0.42% 84.67% 15.33% 0.06% 15.40% -5.77% 9.63% 22.67% 32.21% 21.05% -25.65% 23.10% 26.86% 33.12% 26.89% 32.13% 23.74% 78.60% 6.18% 0.48% 0.13% 85.38% 14.62% 0.07% 14.68% -5.91% 8.78% 19.39% 13.65% 7.57% -39.40% 18.71% 8.86% 11.59% 8.88% 12.19% 6.75% 77.33% 6.62% 0.57% 0.19% 84.71% 15.29% 0.05% 15.34% -5.91% 9.43% 18.80% 29.35% 41.15% 77.96% 19.78% 26.34% -15.58% 26.15% 20.76% 29.78% 76.15% 5.70% 0.38% 0.21% 82.44% 17.56% 0.08% 17.64% -6.31% 11.33% 24.80% 9.11% -14.39% 37.46% 23.34% 45.52% 126.92% 45.77% 35.39% 52.26% 77.13% 6.37% 0.53% 0.25% 84.27% 15.73% 0.07% 15.80% -6.17% 9.63% CHIPOTLE MEXICAN GRILL INC, 15 Quarters Ended in 31-Dec 1200000 Revenue Cost of good sold General and administrative expenses Pre-opening costs Loss on disposal of assets Total operating expenses Operating Income or Loss Interest and other income (expense), net Income before income taxes Provision for income taxes Net income 900000 600000 300000 0 -300000 2010 2011 2012 2013 2014 AICPA Guide: All AICPA guides which are accounting & valuation guide, audit guides, compilation, preparation & review guide and other guides apply to Chipotle Mexican Grill Inc. except audit & accounting guides because the chipotle industry dose not match with any industry in that guide. Similar Company in London Exchange Stock: Benito's Hat is a British company in the same field. Here is some information about it in London Exchange Stock: Key Fundamentals 28-Feb-11 29-Feb-12 28-Feb-13 28-Feb-14 28-Feb-15 Revenue ( m) 0.00 0.00 0.00 0.00 0.00 Pre-Tax ( m) -0.11 -0.07 -0.05 -0.04 -0.06 EPS -3.00p -1.50p -1.00p -0.90p -1.20p PE -0.58 -1.25 -0.48 -0.53 -0.40 Dividend Cover n/a -0.29 -0.19 -0.17 -0.23 Dividend Yield 0.00% 280.00% 1105.26% 1105.26% 1105.26% CHIPOTLE MEXICAN GRILL INC, 16 Report of Independent Registered Public Accounting Firm: We have audited Chipotle Mexican Grill, Inc.'s (the \"Company\") internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Company's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Audit Committee: CHIPOTLE MEXICAN GRILL INC, 17 The Audit Committee has engaged Ernst & Young LLP as independent auditors to audit our consolidated financial statements for the year ending December 31, 2009 and to perform other permissible, pre-approved services. The committee has adopted a policy which sets out procedures that the committee must follow when retaining the independent auditor to perform audit, review and attest engagements and any engagements for permitted non-audit services. This policy is summarized below under \"Policy for Pre-Approval of Audit and Permitted NonAudit Services\" and will be reviewed by the Audit Committee periodically, but no less frequently than annually, for purposes of assuring continuing compliance with applicable law. Ernst & Young LLP has served as our independent auditors since 1997. Representatives of Ernst & Young LLP are expected to be present at the annual meeting and will have an opportunity to make a statement if they desire to do so, and are expected to be available to respond to appropriate questions. Internal control 2014 Effective 2013 Effective 2012 Effective 2011 Effective 2010 Effective Financial statements Unqualified Unqualified Unqualified Unqualified Unqualified Auditor Ernst & Young LLP Ernst & Young LLP Ernst & Young LLP Ernst & Young LLP Ernst & Young LLP The auditors' option on Chipotle Mexican Grill Incorporated's internal control is effective and its financial statement is unqualified for the years 2010 through 2014. Mutual Fund: CHIPOTLE MEXICAN GRILL INC, 18 The last report shows the major direct holders : Major Direct Holders Holder Shares MORAN MONTGOMERY F 154,755 ELLS STEVE 84,543 BALDOCCHI ALBERT S 72,918 HARTUNG JACK 30,392 FLYNN PATRICK J 6,313 The major mutual funds holder: Top Mutual Fund Holders Shares % Out Value* Fidelity Contrafund Inc 1,897,832 6.09 1,347,479,717 Vanguard Mid-Cap Index Fund 619,610 1.99 374,857,847 Price (T.Rowe) Growth Stock Fund Inc. 565,826 1.81 407,536,176 Vanguard Total Stock Market Index Fund 548,818 1.76 332,029,396 Harbor Capital Appreciation Fund 464,806 1.49 334,776,521 Touchstone Funds Group TrTouchstone Sands Capital Select Gr 371,000 1.19 224,451,286 Vanguard 500 Index Fund 356,163 1.14 215,475,049 Artisan Mid-Cap Fund 338,811 1.09 244,028,622 Mainstay Large Cap Growth Fund 333,835 1.07 247,782,345 Holder CHIPOTLE MEXICAN GRILL INC, 19 Holder Vanguard Institutional Index Fund-Institutional Index Fund Shares % Out Value* 331,499 1.06 200,553,576 Insider Transaction for past five years: In 2010, Ells Steve the CEO of Chipotle Mexican Grill Inc sold 313,148 shares. The shares were sold for a total value of $43,839,483. While he bought 90,000 shares for a total value of $6,681,700. Moran Montgomery the CEO of Chipotle Mexican Grill Inc sold 107,699 shares for a total value of $20,291,952 .In the same year he bought 147,699 shares for $22,847,552. For the CFO of the company Hartung Jack sold 69,611 shares for $11,079,751, and bought 87,200 shares for a total value of $9,387,611. As a result, total shares traded in this year are 815,357 shares. 2010 Transaction Shares Buy/Sell No. Reporting Owner Name Reporting Owner Relationship Total Sell 30 Ells Steve CEO 313,148 $ 43,839,483 Total Buy 2 Ells Steve CEO 90,000 $ 6,681,700 Total Sell 17 Moran Montgomery F CEO 107,699 $ 20,291,952 Total Buy 4 Moran Montgomery F CEO 147,699 $ 22,847,552 Total Sell 20 Hartung Jack CFO 69,611 $ 11,079,751 Total Buy 7 Hartung Jack CFO 87,200 $ 9,387,611 Total Shares Traded Total Value 815,357 In 2011, Ells Steve sold 165,500 shares. The shares were sold for a total value of $49,668,411. While he bought 165,500 shares for a total value of $10,827,320. Moran Montgomery sold and bought the same amount of shares which is 115,000 shares. The shares were sold for a total value of $35,324,399 , and bought for a total value of $7,122,200 . Hartung Jack as Steve and Montgomery sold and bought the same amount of shares( 35,000 ).The shares were sold for a total value of $10,351,601, and bought for a total value of $2,222,488. The total shares traded in this year are 631,000 shares. CHIPOTLE MEXICAN GRILL INC, 20 2011 Buy/Sell No Reporting Owner Name Reporting Owner Relationship Total Sell 17 Ells Steve CEO 165,500 $ 49,668,411 Total Buy 5 Ells Steve CEO 165,500 $ 10,827,320 Total Sell 23 Moran Montgomery F CEO 115,000 $ 35,324,399 Total Buy 8 Moran Montgomery F CEO 115,000 $ 7,122,200 Total Sell 14 Hartung Jack CFO 35,000 $ 10,351,601 Total Buy 7 Hartung Jack CFO 35,000 $ 2,222,488 Total Shares Traded Transaction Shares Total Value 631,000 In 2012, the three directors also as on 2011 sold and bought the same number of shares. Ells Steve traded 150,000 shares. The shares were sold for a total value of $58,543,913,and bought for a total value of $11,786,250. Moran Montgomery sold and bought 156,000 shares. The shares were sold for a total value of $61,558,444 , and bought for a total value of $12,138,600. Hartung Jack also sold and bought 77,300 shares .The shares were sold for a total value of $31,199,428, and bought for a total value of $6,593,083. The total shares traded in this year are 766,600 shares. 2012 Buy/Sell No. Reporting Owner Name Reporting Owner Relationship Total Sell 32 Ells Steve CEO 150,000 $ 58,543,913 Total Buy 7 Ells Steve CEO 150,000 $ 11,786,250 Total Sell 38 Moran Montgomery F CEO 156,000 $ 61,558,444 Total Buy 10 Moran Montgomery F CEO 156,000 $ 12,138,600 Total Sell 39 Hartung Jack CFO 77,300 $ 31,199,428 Total Buy 11 Hartung Jack CFO 77,300 $ 6,593,083 Total Shares Traded CHIPOTLE MEXICAN GRILL INC, Transaction Shares Total Value 766,600 21 In 2013, Ells Steve sold 196,966 shares. The shares were sold for a total value of $91,810,010. While he bought 150,000 shares for a total value of $27,939,040. Moran Montgomery sold 42,265 shares for a total value of $19,898,554.In the same year he bought 150,000 shares for $27,939,040. For Hartung Jack sold 48,780 shares for $22,239,123, and bought 150,000 shares for a total value of $27,939,040. To sum up, total shares traded in this year are 738,011 shares. 2013 Buy/Sell No. Reporting Owner Name Reporting Owner Relationship Total Sell 19 Ells Steve CEO 196,966 $ 91,810,010 Total Buy 3 Ells Steve CEO 150,000 $ 27,939,040 Total Sell 4 Moran Montgomery F CEO 42,265 $ 19,898,554 Total Buy 1 Moran Montgomery F CEO 150,000 $ 27,939,040 Total Sell 15 Hartung Jack CFO 48,780 $ 22,239,123 Total Buy 6 Hartung Jack CFO 150,000 $ 27,939,040 Total Shares Traded Transaction Shares Total Value 738,011 In 2014, Moran Montgomery did not sell or buy any shares.On the other hand, Ells Steve sold 130,172 shares. The shares were sold for a total value of $76,522,845. While he bought 112,500 shares for a total value of $37,949,600. For Hartung Jack as on 2011 and 2012 sold and bought the same number of shares. He sold 20,000 shares for $11,132,088, and bought 20,000 shares for a total value of $5,374,600. As a result, total shares traded in this year are 282,672 shares. 2014 Buy/Sell No. Reporting Owner Name Reporting Owner Relationship Total Sell 9 Ells Steve CEO 130,172 $ 76,522,845 Total Buy 3 Ells Steve CEO 112,500 $ 37,949,600 Total Sell 0 Moran Montgomery F CEO - $ - Total Buy 0 Moran Montgomery F CEO - $ - Total Sell 5 Hartung Jack CFO 20,000 $ 11,132,088 Total Buy 2 Hartung Jack CFO 20,000 $ 5,374,600 Total Shares Traded CHIPOTLE MEXICAN GRILL INC, Transaction Shares Total Value 282,672 22 Chipotle's Pension Plan: Chipotle Mexica Grill Inc. offers 401k retirement plan to its employee. Employee 401k contribution are automatically deducted from their paycheck each pay period. This money is taken out before the employees paycheck is taxed. The contributions are invested at the employees direction into one or more funds provided in the plan. Employers often "match" employee contributions, but are not required to do so. While the investments grow in the employees 401k account, they do not pay any taxes on it. 401k plans have proven to be popular with employees for several reasons. The tax deferral is obviously high on this list of reasons. Others include the increased portability of this plan, employer matching contributions, and the increased control associated with self-direction of investments. Long-term Debt: Chipotle Mexican Grill Inc. dose not have any long-term debt. Ratios: Ratios Liquidity ratios 2014 Run rate days of spending, in cash days 45.37 Run rate days of spending, in cash plus days 81.99 STI (Short-terminvestments) Inventory-adjusted days of spending,in days 44.99 cash Inventory-adjusted days of spending,in days 81.99 cash plus STI (Short-terminvestments) days Days' sales outstanding (DSO) 3.10 times/year 139.61 Accounts receivable turnover days Accounts receivable turnover 2.61 days Days of sales in inventory 1.80 days cash conversion cycle 4.42 Inventory turnover times/year 218.56 days Inventory turnover 1.63 Working capital Current ratio,aka working capital ratio CHIPOTLE MEXICAN GRILL INC, money ratio 2013 2012 2011 2010 44.36 52.13 76.89 53.50 79.35 76.42 87.43 83.18 43.96 51.67 76.25 53.25 79.35 76.42 87.43 83.18 2.73 157.52 2.32 1.94 4.26 203.47 1.75 2.25 216.86 1.68 1.95 3.63 207.41 1.72 1.35 323.14 1.13 1.85 2.98 219.26 1.62 1.12 648.97 0.56 1.83 2.39 398.83 0.89 632,769 467,079 359,755 343,739 283,167 3.58 3.34 2.93 3.18 3.30 23 ratio Acid-test ratio,aka quick ratio 3.51 Cash ratio ratio 3.09 times/year 12.99 Working capital turnover trade payables turnover (accounts payable) / (expanditures per days 7.53 day) (Owed to vendors) / (expenditures per 18.58 days day) 3.28 2.90 13.76 2.87 2.53 15.18 3.13 2.90 13.21 3.24 2.84 12.97 8.10 9.49 8.89 8.02 18.12 18.61 17.79 17.27 Long-term debt-paying ability Times interest earned Fixed charge coverage Debt ratio Debt/equity ratio, aka debt-to-equity ratio Debt to tangible net worth ratio Current debt to net worth ratio Current debt to tangible net worth ratio Total capitalization ratio Total tangible capitalization ratio Fixed assets to equity ratio Fixed assets to tangible equity ratio ratio ratio ratio ratio ratio ratio ratio ratio ratio ratio ratio 128.14 128.14 0.21 0.27 0.27 0.12 0.12 0.11 0.12 1.25 1.27 188.00 187.89 0.23 0.31 0.31 0.13 0.13 0.14 0.14 1.29 1.31 153.75 153.58 0.25 0.34 0.35 0.15 0.15 0.15 0.15 1.32 1.35 -249.81 146.51 -250.69 146.04 0.27 0.28 0.36 0.38 0.37 0.39 0.15 0.15 0.15 0.16 0.17 0.18 0.17 0.18 1.34 1.36 1.37 1.39 Profitability measurements Gross profit margin Operating income margin (pre-tax) Net profit margin, aka return on sales Return on assets aka ROA Return on operating assets Return on investment (ROI) Return on total equity Return on common equity percentage percentage percentage percentage percentage percentage percentage percentage 27.21% 17.39% 10.46% 18.87% 31.66% 10.29% 25.09% 25.09% 26.59% 16.63% 9.70% 16.96% 29.41% 9.33% 23.52% 23.53% 27.11% 16.76% 9.74% 17.20% 30.01% 9.67% 24.28% 24.29% 25.96% 15.41% 9.10% 16.21% 27.94% 8.58% 23.17% 23.18% 26.66% 15.74% 9.33% 30.53% 52.57% 11.89% 44.15% 44.16% ratio 1.80 1.75 1.77 1.78 3.27 ratio 1.82 1.77 1.79 1.81 3.34 ratio 1.82 1.77 1.79 1.81 3.34 Efficiency measurements Asset turnover (sales per dollar of assets) Operating asset turnover (sales per dallar of operating assets) Sales to fixed assets (sales per dallar of fixed assets) CHIPOTLE MEXICAN GRILL INC, 24 Ratio Analysis: The latest year puts the company at a $45.37 thousand run rate." All this is saying is that if the company were to perform at the same level for the next year, they'd have annual revenues of $45.37 thousand. The latest year puts the company at a $81.99 thousand run rate." All this is saying is that if the company were to perform at the same level for the next year, they'd have annual revenues of $81.99 thousand. In the last year the average collection period for the accounts receivable is 3.10 days which is the highest average than the last five years. The accounts receivable turnover for CHIPOTLE MEXICAN GRILL is 2.61, which compared to the baseline of 2.32 suggests this ratio is on target with company objectives. Days sales in Inventory ratio is 1.80 days in last year. This means Chipotle has enough inventories to last the next 1.8 days or Chipotle will turn his inventory into cash in the next 1.80 days. Chipotle's cash conversion cycle is 4.42 days in last year. This means it takes time 4.42 days from paying for his inventory to receive the cash from its sale. This indicates that Chipotle sells its entire inventory within a 1.63-day period, which is quite impressive for the company. The working capital ratio for Chipotle is 3.58, which compared to the baseline of 3.34 indicates the company's ability to service short-term obligations is satisfactory. However the value of the quick ratio will provide a clearer indication of the company's success in this area. The quick ratio or Acid-test ratio for Chipotle is 3.51in last year, which compared to the baseline of 3.28 indicates the company's ability to service short-term obligations is favorable. Chipotle's cash ratio is 3.09 in last year. This means that Chipotle only has enough cash and equivalents to pay off 3.09 percent of her current liabilities. This is a fairly high ratio which means it maintains a relatively high cash balance during the year. The times interest earned ratio for Chipotle is 128.14, which compared to the baseline of 188.00 indicates the company's interest coverage may not be sufficient. CHIPOTLE MEXICAN GRILL INC, 25 Chipotle's ratio is 128.14 in the last year. This is a healthy ratio and the company should be able to receive his loan from the bank. Chipotle only has a debt ratio of .21 in the last year. In other words, Chipotle almost has 4 times as many assets as he has liabilities. This is a relatively low ratio. This ratio indicates that Chipotle in the last year has 11% of the company's capital structure consists of debt. Chipotle's ratio is 1.25. This means that investors rather than debt are currently funding more assets1.25 percent of the company's assets are owned by shareholders and not creditors. Depending on the industry, this is a healthy ratio. Chipotle has a ratio of 27.21% in the last year. This is a low ratio in the industry. Chipotle only converted 10.46 percent of her sales into profits. The percent rate of return on assets for Chipotle is 18.87%, which compared to the baseline of 16.96% indicates there is an improvement in this area and the company can remain competitive and continue to operate successfully. Chipotle's ratio is 31.66 percent. Depending on the economy, this can be a healthy return rate no matter what the investment is. Chipotle's return on this stock purchase was 10.29 percent. It's still a good return, but nothing compared to the other investment. after preferred dividends are removed from net income Chipotle's ROE is 25.09%.. This ratio is most likely considered high for her industry. This could indicate that Chipotle is a growing company. Chipotle's ratio is only 1.8. This means that for every dollar in assets. CHIPOTLE MEXICAN GRILL INC, 26 References: https://www.sec.gov/Archives/edgar/data/1058090/000119312513110008/ d499891dpre14a.htm. Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312515091506/ d883526dpre14a.htm Date: Nov.19th. 2015 http://www.businessinsider.com/chipotles-biggest-competitor-isntmcdonalds-2015-8 Date: Nov.19th. 2015 http://uoinvestmentgroup.org/wp-content/uploads/2012/04/CMGUpdate.pdf Date: Nov.19th. 2015 http://www.investopedia.com/ask/answers/052015/who-are-chipotles-cmgmain-competitors.asp Date: Nov.19th. 2015 http://www.forbes.com/ Date: Nov.19th. 2015 http://www.401khelpcenter.com/401k_defined.html#.VlEtkN-rSt8 Date: Nov.19th. 2015 https://www.marketforce.com/press-releases/item/market-force-researchchipotle-americas-favorite-mexican-food-chain/ Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312511105016/ d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312512170975/ d329098d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312513161154/ d496863d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312514147849/ d698182d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312511193785/ d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312512307689/ d365423d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312513294535/ d540633d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312514274455/ d760141d10q.htm Date: Nov.19th. 2015 CHIPOTLE MEXICAN GRILL INC, 27 https://www.sec.gov/Archives/edgar/data/1058090/000119312511277141/ d227353d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312512427457/ d404279d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312513402791/ d601430d10q.htm Date: Nov.19th. 2015 https://www.sec.gov/Archives/edgar/data/1058090/000119312514376599/ d736480d10q.htm Date: Nov.19th. 2015 http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irolnewsArticle&ID=1655421 Date: Nov.19th. 2015 http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irolnewsArticle&ID=1716581 Date: Nov.19th. 2015 http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irolnewsArticle&ID=1895464 Date: Nov.19th. 2015 http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irolnewsArticle&ID=2013178 Date: Nov.19th. 2015 https://finance.yahoo.com/q/mh?s=CMG+Major+Holders Date: Nov.19th. 2015 http://www.londonstockexchange.com/exchange/prices-and-markets/ stocks/summary/company-summary/GB00B631ZQ22GBGBXSSX3.html Date: Nov.19th. 2015 http://www.aicpa.org/PUBLICATIONS/ACCOUNTINGAUDITING/ AAGUIDES/Pages/AICPAGuides.aspx CHIPOTLE MEXICAN GRILL INC, 28 CHIPOTLE MEXIC CHIPOTLE MEXICAN GRILL, INC. CONSOLIDATED BALANCE SHEET (in thousands, except per share data) December 31 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Current deferred tax asset Prepaid expenses and other current assets Income tax receivable Investments Total current assets Leasehold improvements, property and equipment, net Long term investments Other assets Goodwill Total assets Liabilities and shareholders' equity Current liabilities: Accounts payable Accrued payroll and benefits Accrued liabilities Current portion of deemed landlord financing Income tax payable Total current liabilities Deferred rent Deemed landlord financing Deferred income tax liability Other liabilities Total liabilities Shareholders' equity: Common stock Additional paid-in capital Treasury stock, at cost Accumulated other comprehensive income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity POTLE MEXICAN GRILL, INC. Ticker symbol:CMG Money 2015 2014 248,005 38,283 15,043 2013 2012 2011 2015 39,965 58,152 415,199 419,465 34,839 15,332 18,968 34,795 16,488 338,592 323,203 24,016 13,044 13,212 34,204 3,657 254,971 322,553 16,800 11,096 8,862 27,378 9,612 150,306 401,243 8,389 8,913 6,238 21,404 0 55,005 814,647 1,217,220 622,939 48,321 21,939 878,479 1,106,984 496,106 42,777 21,939 666,307 963,238 313,863 43,933 21,939 546,607 866,703 190,868 42,550 21,939 501,192 751,951 128,241 21,985 21,939 0.091 0.014 0.006 0.000 0.015 0.021 0.152 0.000 0.299 0.447 0.229 0.018 0.008 2,725,066 2,546,285 2,009,280 1,668,667 1,425,308 100% 85,709 64,958 129,275 0 0 69,613 73,894 102,203 0 0 59,022 67,195 73,011 0 0 58,700 71,731 56,421 0 0 46,382 60,241 46,456 133 4241 0.03 0.02 0.05 0.00 0.00 279,942 251,962 0 32,305 32,883 245,710 219,414 0 21,561 28,263 199,228 192,739 0 55,434 23,591 186,852 167,057 0 48,947 19,885 157,453 143,284 3,529 64,381 12,435 0.10 0.09 0.00 0.01 0.01 597,092 514,948 470,992 422,741 381,082 0.22 358 354 352 349 344 0.00 1,172,628 -1,234,612 -8,273 2,197,873 1,038,932 -748,759 -429 1,722,271 919,840 -660,421 1,620 1,276,897 816,612 -521,518 1,024 949,459 676,652 -304,426 197 671,459 0.43 -0.45 0.00 0.81 2,127,974 2,012,369 1,538,288 1,245,926 1,044,226 0.78 2,725,066 2,527,317 2,009,280 1,668,667 1,425,308 100% Percentage 2014 2013 2012 2011 0.165 0.014 0.006 0.007 0.014 0.006 0.133 0.161 0.012 0.006 0.007 0.017 0.002 0.127 0.193 0.010 0.007 0.005 0.016 0.006 0.090 0.282 0.006 0.006 0.004 0.015 0.000 0.039 0.345 0.435 0.195 0.017 0.009 0.332 0.479 0.156 0.022 0.011 0.328 0.519 0.114 0.025 0.013 0.352 0.528 0.090 0.015 0.015 100% 100% 100% 100% 0.03 0.03 0.04 0.00 0.00 0.03 0.03 0.04 0.00 0.00 0.04 0.04 0.03 0.00 0.00 0.03 0.04 0.03 0.00 0.00 0.10 0.09 0.00 0.01 0.01 0.10 0.10 0.00 0.03 0.01 0.11 0.10 0.00 0.03 0.01 0.11 0.10 0.00 0.05 0.01 0.20 0.23 0.25 0.27 0.00014 0.00018 0.00021 0.00024 0.41 -0.30 -0.00017 0.68 0.46 -0.33 0.00081 0.64 0.49 -0.31 0.00061 0.57 0.47 -0.21 0.00014 0.47 0.80 0.77 0.75 0.73 100% 100% 100% 100% CHIPOTLE MEXIC CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (in thousands, except per share data) December 31 Sales Revenue Restaurant operating costs (exclusive of depreciation and amortization shown separately below): Food, beverage and packaging Labor Occupancy Other operating costs General and administrative expenses Depreciation and amortization Pre-opening costs Loss on disposal of assets Total operating expenses Income from operations Interest and other income (expense), net Income before income taxes Provision for income taxes Net income Other comprehensive income: Foreign currency translation adjustments Comprehensive income Earnings per share: Basic Diluted Weighted average common shares outstanding: Basic Diluted POTLE MEXICAN GRILL, INC. Ticker symbol:CMG Money 2015 2014 2013 2012 2011 2015 4,501,223 4,108,269 3,214,591 2,731,224 2,269,548 100% 1,503,835 1,045,726 262,412 514,963 250,214 130,368 16,922 13,194 1,420,994 904,407 230,868 434,244 273,897 110,474 15,609 6,976 1,073,514 739,800 199,107 347,401 203,733 96,054 15,511 6,751 891,003 641,836 171,435 286,610 183,409 84,130 11,909 5,027 738,720 543,119 147,274 251,208 149,426 74,938 8,495 5,806 0.33 0.23 0.06 0.11 0.06 0.03 0.00 0.00 3,737,634 3,397,469 2,681,871 2,275,359 1,918,986 0.83 763,589 6,278 710,800 3,503 532,720 1,751 455,865 1,820 350,562 -857 0.17 0.00 769,867 -294,265 714,303 -268,929 534,471 -207,033 457,685 -179,685 349,705 -134,760 0.17 -0.07 475,602 445,374 327,438 278,000 214,945 0.11 -2,049 596 827 -409 0.00000 443,325 328,034 278,827 214,536 0.00 15 14 11 9 6.89 0.000003 15 14 10 9 6.76 0.000003 31,092 31,038 30,957 31,513 31,217 0.01 31,494 31,512 31,281 31,783 31,775 0.01 Percentage 2014 2013 2012 2011 100% 100% 100% 100% 0.35 0.22 0.06 0.11 0.07 0.03 0.00 0.00 0.33 0.23 0.06 0.11 0.06 0.03 0.00 0.00 0.33 0.23 0.06 0.10 0.07 0.03 0.00 0.00 0.33 0.24 0.06 0.11 0.07 0.03 0.00 0.00 0.83 0.83 0.83 0.85 0.17 0.00 0.17 0.00 0.17 0.00 0.15 0.00 0.17 -0.07 0.17 -0.06 0.17 -0.07 0.15 -0.06 0.11 0.10 0.10 0.09 -0.00050 0.00019 0.00030 -0.00018 0.11 0.10 0.10 0.09 0.000003 0.000003 0.000003 0.000003 0.000003 0.000003 0.000003 0.000003 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 C CHIPOTLE MEXICAN GRILL, INC. Ticker symbol:CMG CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) December 31 Operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income tax (benefit) provision Loss on disposal of assets Bad debt allowance Stock-based compensation expense Excess tax benefit on stock-based compensation Other Changes in operating assets and liabilities: Accounts receivable Inventory Prepaid expenses and other current assets Other assets Accounts payable Accrued liabilities Income tax payable/receivable Deferred rent Other long-term liabilities Net cash provided by operating activities Investing activities Purchases of leasehold improvements, property and equipment Acquisition of interests in equity method investment Purchases of investments Maturities of investments Net cash used in investing activities Financing activities Acquisition of treasury stock Excess tax benefit on stock-based compensation Stock plan transactions and other financing activities Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental disclosures of cash flow information Income taxes paid Increase in purchases of leasehold improvements, property and equipment accrued in accounts payable and acc Increase in acquisition of treasury stock accrued in accrued liabilities IPOTLE MEXICAN GRILL, INC. Money 2015 2014 2013 2012 2011 2015 475,602 445,374 327,438 278,000 214,945 0.70 130,368 11,666 13,194 -23 57,911 -74,442 582 110,474 -20,671 6,976 9 96,440 -21,667 104 96,054 2,103 6,751 19 63,657 -38,379 507 84,130 -18,057 5,027 1,046 64,276 -73,210 522 74,938 11,935 5,806 239 41,382 -38,786 2,501 -3,504 262 -5,259 -5,619 19,525 -7,440 32,756 32,911 4,826 -10,966 -2,307 -658 1,071 2,168 35,019 8,831 27,025 4,845 -7,238 -1,950 -6,806 -1,354 2,052 12,020 44,334 25,715 3,857 -9,438 -2,180 -5,954 -20,539 7,849 21,307 59,357 23,765 4,062 -2,970 -1,816 -5,399 -7,350 9,432 17,451 66,555 19,624 2,609 0.19 0.02 0.02 0.00 0.08 -0.11 0.00 0.00 -0.01 0.00 -0.01 -0.01 0.03 -0.01 0.05 0.05 0.01 683,316 -257,418 0 -559,372 352,650 -464,140 -460,675 74,442 -207 682,067 -252,590 0 -521,004 254,750 -518,844 -88,338 21,667 -66 528,780 -199,926 0 -387,639 159,250 -428,315 -138,903 38,379 173 419,963 -197,037 0 -213,462 55,000 -355,499 -217,092 73,210 348 411,096 -151,147 -586 -183,251 124,766 -210,218 -63,508 38,786 454 100% 0.55 0.00 1.08 -0.68 100% 1.19 -0.19 0.00 -386,440 -4,196 -171,460 419,465 248,005 -66,737 -224 96,262 323,203 419,465 -100,351 536 650 322,553 323,203 -143,534 380 -78,690 401,243 322,553 -24,268 -205 176,405 224,838 401,243 100% -0.02 -0.69 1.69 100% 248,547 280,687 160,973 138,385 56,270 - -2,870 25,178 9,424 -1,736 4,455 3,249 - Percentage 2014 2013 2012 2011 0.65 0.62 0.66 0.52 0.16 -0.03 0.01 0.00 0.14 -0.03 0.00 0.18 0.00 0.01 0.00 0.12 -0.07 0.00 0.20 -0.04 0.01 0.00 0.15 -0.17 0.00 0.18 0.03 0.01 0.00 0.10 -0.09 0.01 -0.02 0.00 0.00 0.00 0.00 0.05 0.01 0.04 0.01 -0.01 0.00 -0.01 0.00 0.00 0.02 0.08 0.05 0.01 -0.02 -0.01 -0.01 -0.05 0.02 0.05 0.14 0.06 0.01 -0.01 0.00 -0.01 -0.02 0.02 0.04 0.16 0.05 0.01 100% 0.49 0.00 1.00 -0.49 100% 1.32 -0.32 0.00 100% 0.47 0.00 0.91 -0.37 100% 1.38 -0.38 0.00 100% 0.55 0.00 0.60 -0.15 100% 1.51 -0.51 0.00 100% 0.72 0.00 0.87 -0.59 100% 2.62 -1.60 -0.02 100% 100% 0.00 0.23 0.77 100% 100% 0.00 0.00 1.00 100% 100% 0.00 -0.24 1.24 100% 0.00 0.44 0.56 100% - - - - - - - - CHIPOTLE MEXICAN GRILL, INC. T CHIPOTLE MEXICAN GRILL, INC. CONSOLIDATED BALANCE SHEET (in thousands, except per share data) December 31 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Current deferred tax asset Prepaid expenses and other current assets Income tax receivable Investments Total current assets Leasehold improvements, property and equipment, net Long term investments Other assets Goodwill Total assets Liabilities and shareholders' equity Current liabilities: Accounts payable Accrued payroll and benefits Accrued liabilities Current portion of deemed landlord financing Income tax payable Total current liabilities Deferred rent Deemed landlord financing Deferred income tax liability Other liabilities Total liabilities Shareholders' equity: Common stock Additional paid-in capital Treasury stock, at cost Accumulated other comprehensive income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (in thousands, except per share data) Sales Revenue Restaurant operating costs (exclusive of depreciation and amortization shown separately below): Food, beverage and packaging Labor Occupancy Other operating costs General and administrative expenses Depreciation and amortization Pre-opening costs Loss on disposal of assets Total operating expenses Income from operations Interest and other income (expense), net Income before income taxes Provision for income taxes Net income Other comprehensive income: Foreign currency translation adjustments Comprehensive income Earnings per share: Basic Diluted Weighted average common shares outstanding: Basic Diluted CHIPOTLE MEXICAN GRILL, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) Operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Deferred income tax (benefit) provision Loss on disposal of assets Bad debt allowance Stock-based compensation expense Excess tax benefit on stock-based compensation Other Changes in operating assets and liabilities: Accounts receivable Inventory Prepaid expenses and other current assets Other assets Accounts payable Accrued liabilities Income tax payable/receivable Deferred rent Other long-term liabilities Net cash provided by operating activities Investing activities Purchases of leasehold improvements, property and equipment Acquisition of interests in equity method investment Purchases of investments Maturities of investments Net cash used in investing activities Financing activities Acquisition of treasury stock Excess tax benefit on stock-based compensation Stock plan transactions and other financing activities Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Supplemental disclosures of cash flow information Income taxes paid Increase in purchases of leasehold improvements, property and equipment accrued in accounts payable and accrued cker symbol:CMG money 2010 2011 2012 2013 2014 2015 224,838 5,658 7,098 4,317 16,016 23,528 124,766 401,243 8,389 8,913 6,238 21,404 0 55,005 322,553 16,800 11,096 8,862 27,378 9,612 150,306 323,203 24,016 13,044 13,212 34,204 3,657 254,971 419,465 34,839 15,332 18,968 34,795 16,488 338,592 248,005 38,283 15,043 406,221 676,881 0 16,564 21,939 501,192 751,951 128,241 21,985 21,939 546,607 866,703 190,868 42,550 21,939 666,307 963,238 313,863 43,933 21,939 878,479 1,106,984 496,106 42,777 21,939 814,647 1,217,220 622,939 48,321 21,939 1,121,605 1,425,308 1,668,667 2,009,280 2,546,285 2,725,066 33,705 50,336 38,892 121 0 46,382 60,241 46,456 133 4241 58,700 71,731 56,421 0 0 59,022 67,195 73,011 0 0 69,613 73,894 102,203 0 0 85,709 64,958 129,275 0 0 123,054 123,667 3,661 50,525 9,825 157,453 143,284 3,529 64,381 12,435 186,852 167,057 0 48,947 19,885 199,228 192,739 0 55,434 23,591 245,710 219,414 0 40,529 28,263 279,942 251,962 0 21,561 32,883 310,732 381,082 422,741 470,992 533,916 586,348 39,965 58,152 415,199 340 594,331 -240,918 606 456,514 344 676,652 -304,426 197 671,459 349 816,612 -521,518 1,024 949,459 352 919,840 -660,421 1,620 1,276,897 354 1,038,932 -748,759 -429 1,722,271 358 1,172,628 -1,234,612 -8,273 2,127,974 810,873 1,044,226 1,245,926 1,538,288 2,012,369 2,058,075 1,121,605 1,425,308 1,668,667 2,009,280 2,546,285 178,781 2,644,423 80,643 1,835,922 2,269,548 2,731,224 3,214,591 4,108,269 561,107 453,573 128,933 202,904 118,590 68,921 7,767 6,296 738,720 543,119 147,274 251,208 149,426 74,938 8,495 5,806 891,003 641,836 171,435 286,610 183,409 84,130 11,909 5,027 1,073,514 739,800 199,107 347,401 203,733 96,054 15,511 6,751 1,420,994 904,407 230,868 434,244 273,897 110,474 15,609 6,976 1,503,835 1,045,726 262,412 514,963 250,214 130,368 16,922 13,194 1,548,091 1,918,986 2,275,359 2,681,871 3,397,469 3,737,634 287,831 1,230 350,562 -857 455,865 1,820 532,720 1,751 710,800 3,503 763,589 6,278 289,061 -110,080 349,705 -134,760 457,685 -179,685 534,471 -207,033 714,303 -268,929 769,867 -294,265 178,981 214,945 278,000 327,438 445,374 475,602 577 -409 827 596 -2,049 179,558 214,536 278,827 328,034 443,325 5.73 6.89 9 11 14 15 5.64 6.76 9 10 14 15 31,234 31,217 31,513 30,957 31,038 31,092 31,735 31,775 31,783 31,281 31,512 31,494 178,981 214,945 278,000 327,438 445,374 475,602 68,921 10,479 6,296 -151 21,381 -14,526 0 74,938 11,935 5,806 239 41,382 -38,786 2,501 84,130 -18,057 5,027 1,046 64,276 -73,210 522 96,054 2,103 6,751 19 63,657 -38,379 507 110,474 -20,671 6,976 9 96,440 -21,667 104 130,368 11,666 13,194 -23 57,911 -74,442 582 -743 -1,481 -1632 -8,956 6,989 16607 -13,209 17,261 2974 -2,970 -1,816 -5,399 -7,350 9,432 17,451 66,555 19,624 2,609 -9,438 -2,180 -5,954 -20,539 7,849 21,307 59,357 23,765 4,062 -7,238 -1,950 -6,806 -1,354 2,052 12,020 44,334 25,715 3,857 -10,966 -2,307 -658 1,071 2,168 35,019 8,831 27,025 4,845 -3,504 262 -5,259 -5,619 19,525 -7,440 32,756