- "If you can't pronounce it, it's not in our food." We use a variety of ingredients that we purchase from
carefully selected suppliers. We concentrate on where we obtain each ingredient, and this has become a cornerstone of our continuous effort to improve our food. Some of the ingredients
use include naturally raised pork, beef and chicken, as well as organically grown and sustainably grown produce, and we continue to investigate using even more naturally raised, organically grown
and sustainably grown ingredients, in light of pricing considerations.
- "A few things, thousands of ways." We only serve a few things: burritos, burrito bols (a burrito without the
tortilla), tacos and salads. We plan to keep a simple menu, but we'll always consider sensible additions. For example, we introduced the burrito bol in 2003just when the popularity of
low-carbohydrate diets explodedand estimate that we sold about seven million of them in that year. In 2005, we also rolled out a salad.
believe that our focus on "food with integrity" will resonate with customers as the public becomes increasingly aware of, and concerned about, what they eat.
We believe that our front-line crew differentiates the Chipotle experience. Virtually all of what our crew does is in view of customers, and because
the person who prepares the food is often the same person who serves it, our employees have a strong sense of pride in their work. We think this and our crew's commitment to our vision contribute to
better execution and service and are reflected in our crew turnover rate, which we believe is lower than the average in our industry.
The design of each Chipotle store reflects the same idea as our food: a limited number of basic materials used in imaginative ways. We design each store
individually to suit the space. Even the design of our chairs and artwork is unique to Chipotle. The design of our serving line and our open kitchens also exemplify our vision, demonstrating our
commitment to cooking fresh food.
We believe the best and most recognizable brands aren't built through advertising or promotional campaigns alone, but rather through deeply held beliefs evident
in how a company runs its business. By adhering to this principle, we believe that Chipotle is becoming a highly recognized brand. We believe the single greatest contributor to our success has been
word-of-mouth, with our customers learning about us and telling others. For example, some of our customers have gone so far as to develop websites about Chipotle. Our
advertising has a low-key and irreverent voice that has been popular with customers. Our approach has captured the attention of some of the country's most renowned news media, including
the Washington Post, Food and Wine magazine, the New York
Times, and several well-regarded food critics, which we think is unusual in our segment of the restaurant industry. If you are reading an electronic version of this
prospectus, which is available at www.chipotleipo.com, click here for a selection of our print, radio and television advertisements.
Our simple but effective approach has helped us build a sizeable and loyal customer base and resulted in rapidly improving financial performance over the last
decade. Our revenue was $470.7 million in 2004, a 130% increase from 2002, driven by new store openings and increased average store sales. During 2002, 2003 and 2004, we opened 237 stores in
total. Increases in average store sales have occurred partly because the time it takes for our new stores to achieve planned sales volumes, or ramp up, has consistently shortened as we've grown and
customers have learned about our brand, enabling new stores to open with higher average sales. Average sales for new stores in the first 90 trading days increased 29.4% to $303,390