This summary highlights information contained elsewhere in this prospectus. It does not contain all of the information that may be
important to you in making your investment decision. You should read the entire prospectus carefully, including the section describing the risks of investing in our class A common stock
entitled "Risk Factors" and our financial statements and related notes included elsewhere in this prospectus, before deciding to buy our class A common stock.
CHIPOTLE MEXICAN GRILL, INC.
When a Chain Isn't a "Chain"
When Chipotle (pronounced chi-POAT-lay) opened its first store in 1993, the idea was simple: demonstrate that food served fast didn't have
to be a "fast-food" experience. We use high-quality raw ingredients, classic cooking methods and a distinctive interior design, and have friendly people to take care of each
customerfeatures that are more frequently found in the world of fine dining. When we opened, there wasn't an industry category to describe what we were doing. Some 12 years and
more than 460 stores later, we compete in a category of dining now called "fast-casual," the fastest growing segment of the restaurant industry, where customers expect food quality that's
more in line with full-service restaurants, coupled with the speed and convenience of fast food.
Our revenue was $470.7 million in 2004, a 130% increase from 2002 and a 49% increase from 2003, driven by new store openings and increased average store sales. Average store sales
grew from $1,056,000 for 2002 to $1,274,000 for 2003, $1,361,000 for 2004 and $1,406,000 for the trailing 12-month period ended September 30, 2005, reflecting the growing consumer
awareness of our brand. Strong growth in sales at stores open at least 13 full months, which we call comp store sales, is due mainly to an increase in the number of transactions processed at our
registers. Our net income (loss) improved from a loss of $7.7 million in 2003 to income of $6.1 million in 2004 and $33.4 million (inclusive of a non-recurring
$20.3 million tax benefit) in the first nine months of 2005, and our earnings before interest, taxes, depreciation and amortization, or EBITDA, was $7.2 million in 2003,
$27.9 million in 2004 and $43.7 million in the first nine months of 2005.
McDonald's, our management and a small number of outside investors currently own Chipotle. McDonald's interest is about 92% and, after the offering, we expect McDonald's will own about
% of the combined voting power of our outstanding stock and % of the economic interest in our outstanding common stock.
What We Do Really Well
We try to do a few things really well, and we plan to keep this intentionally focused strategy as we grow. We elevate basic raw ingredients into food that's
richer and more sophisticated through our recipes and cooking techniques. Similarly, our store design transforms simple materials in distinctive ways, giving our stores a style that's more
architectural in nature and less dependent on standardized design elements. We respect our employees and invite them to share their ideas, which we think inspires them to take pride in their work and
increases their dedication to our customers and our company.
Our focus has always been on using the kinds of higher-quality ingredients and cooking techniques used in high-end restaurants to make great food
accessible at reasonable prices. But our vision has evolved. While using a variety of fresh ingredients remains the foundation of our menu, we believe that "fresh is not enough, anymore." Now we want
to know where all of our ingredients come from, so that we can be sure they are as flavorful as possible while understanding the environmental and societal impact of our business. We call this idea
"food with integrity," and it guides how we run our business.