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SEC Filings

S-1/A
CHIPOTLE MEXICAN GRILL INC filed this Form S-1/A on 12/05/2005
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    Nine Months Ended September 30, 2005 Compared to Nine Months Ended September 30, 2004

        The table below presents our operating results for the nine months ended September 30, 2004 and 2005 and the related period-to-period changes:

 
  Nine Months Ended September 30,
   
   
 
 
  Increase/
(Decrease)

  % Increase/
(Decrease)

 
 
  2004
  2005
 
 
  (in millions, except percentages)

 
Restaurant sales   $ 341.8   $ 452.6   $ 110.8   32.4 %
Food, beverage and packaging costs     111.4     146.9     35.5   31.8  
Labor costs     101.8     129.7     27.9   27.4  
Occupancy costs     26.2     34.5     8.3   31.8  
Other operating costs     46.1     59.4     13.3   28.8  
General and administrative expenses     29.2     37.2     8.0   27.5  
Depreciation and amortization.     15.8     20.4     4.6   29.0  
Pre-opening costs     1.6     1.2     (0.4 ) (20.1 )
Loss on disposal of assets     1.4     1.8     0.4   32.4  
Net interest expense         0.6     0.6   n/m *
Benefit for income taxes         10.8     10.8   n/m *

*
Not meaningful.

        Restaurant Sales.    Of the $110.8 million increase in restaurant sales, $29.4 million was due to an increase in comp store sales in the first nine months of 2005 compared to the 2004 period, $29.3 million related to the impact of non-comparable sales at stores opened in January through August 2004, $27.2 million was due to stores opened in September through December 2004 and $25 million was due to stores opened in 2005. Average store sales for the trailing 12-month period ended September 30, 2005 increased 3.0% to $1,406,000 from $1,365,000 for the trailing 12-month period ended September 30, 2004, driven primarily by comp store sales growth of 8.7% that reflected increasing nationwide awareness of our brand, which also enabled new stores to open with higher average sales. A substantial majority of the comp store sales growth was due to an increase in the number of transactions, and the remainder was driven primarily by menu price increases.

        Food, Beverage and Packaging Costs.    Food, beverage and packaging costs increased due to the increase in restaurant sales because we used more ingredients and packaging as a result of the addition of new stores in the last three months of 2004 and the first nine months of 2005, comp store sales increases and increasing sales at 35 stores opened in the first nine months of 2004 that were not in operation for 12 full months in the first nine months of 2005. As a percentage of total revenue, food, beverage and packaging costs decreased slightly to 32.3% in the first nine months of 2005 from 32.5% in the comparable 2004 period. This decrease was due primarily to a decline in raw ingredient costs and menu price increases, partially offset by increased fuel costs.

        Labor Costs.    The period-to-period increase in labor costs was due to the growth in our store base, as our average number of hourly employees increased to about 9,900 in the first nine months of 2005 from about 7,900 in the comparable 2004 period. The effect was mainly due to the impact of staff hired for stores opened throughout 2005 and the last quarter of 2004. As a percentage of total revenue, labor costs decreased to 28.5% in the nine first months of 2005 from 29.6% in the comparable 2004 period, largely due to improved employee efficiency resulting from an increase in the number of transactions, which did not require a corresponding increase in staff, and a gradual improvement over time in staffing our stores with the most appropriate number of crew members for each store.

        Occupancy Costs.    The $8.3 million period-to-period increase in occupancy costs was primarily due to an increase in rental costs relating to the opening of new stores, inflationary pressures on rents and the

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