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SEC Filings

S-1/A
CHIPOTLE MEXICAN GRILL INC filed this Form S-1/A on 12/23/2005
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        Occupancy Costs.    The year-to-year increase in occupancy costs was primarily due to an increase in rental costs resulting from the large number of stores opened in 2004 and the full-year impact in 2004 of such costs for stores opened throughout 2003. As a percentage of total revenue, occupancy costs decreased from 8.1% in 2003 to 7.7% in 2004, largely as a result of the effect of higher average store sales on a largely fixed-cost base.

        Other Operating Costs.    The year-to-year increase in operating costs was driven by the large number of stores opened in 2004 and the full-year impact in 2004 of stores opened throughout 2003. As a percentage of restaurant sales, other operating costs declined slightly to 13.7% in 2004 from 13.8% in 2003, largely as a result of the effect of higher average store sales on a partially fixed-cost base.

        General and Administrative Expenses.    The increase in general and administrative expenses primarily resulted from a $4.0 million charge to set up a reserve related to potential credit card liabilities and hiring more employees as we grew. As a percentage of total revenue, these expenses decreased to 9.5% in 2004 from 10.8% in 2003 as a result of our ability to further leverage our existing corporate infrastructure over more stores.

        Depreciation and Amortization.    Depreciation and amortization increased primarily due to stores opened in 2004 and the full-year impact in 2004 of stores opened throughout 2003. As a percentage of total revenue, depreciation and amortization decreased from 4.8% in 2003 to 4.6% in 2004, largely as a result of the effect of higher average store sales on a largely fixed-cost base.

        Pre-Opening Costs.    The increase in pre-opening costs was principally due to the opening of 103 company-operated stores in 2004, an increase of 29 company-operated store openings from 2003.

        Loss on Disposal of Assets.    The decrease in loss on disposal of assets was largely due to a $2.0 million write-off associated with the closing of three stores in 2003.

        Net Interest Income.    The decrease in interest income (net of interest expense) was due to reduced earnings on average excess cash deposits in 2004 as compared to 2003.

    Year Ended December 31, 2003 Compared to Year Ended December 31, 2002

        The table below presents our operating results for the years ended December 31, 2002 and 2003 and the related year-to-year changes:

 
  Year Ended
December 31,

   
   
 
 
  Increase/
(Decrease)

  % Increase/
(Decrease)

 
 
  2002
  2003
 
 
  (in millions, except percentages)

 
Restaurant sales   $ 203.9   $ 314.0   $ 110.1   54.0 %
Food, beverage and packaging costs     67.7     104.9     37.2   55.0  
Labor costs     66.5     94.0     27.5   41.4  
Occupancy costs     18.7     25.6     6.9   36.6  
Other operating costs     29.8     43.5     13.7   46.1  
General and administrative expenses     25.8     34.2     8.4   32.5  
Depreciation and amortization.     11.3     15.1     3.8   34.0  
Pre-opening costs     1.0     1.6     0.6   59.6  
Loss on disposal of assets     1.5     4.5     3.0   n/m *
Net interest income     0.3     0.2     (0.1 ) (35.6 )

*
Not meaningful.

        Restaurant Sales.    Of the $110.1 million year-to-year increase in restaurant sales, $48.0 million was due to comp store sales increases, $34.5 million resulted from additional sales in 2003 by 55

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