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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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        We haven't required significant working capital because customers pay using cash or credit cards and because our operations do not require significant receivables, nor do they require significant inventories due, in part, to our use of various fresh ingredients. In addition, we generally have the right to pay for the purchase of food, beverage and supplies some time after the receipt of those items, generally within ten days, thereby reducing the need for incremental working capital to support growth.

        Operating Activities.    Net cash provided by operating activities was $52.6 million for the nine months ended September 30, 2005 compared to $31.1 million for the comparable period in 2004. The $22.2 million increase was primarily attributable to a $12.8 million improvement in income before income taxes driven by increased average store sales and a $4.6 million increase in depreciation and amortization (a non-cash expense) due to significantly more stores in operation in the first nine months of 2005 compared to the comparable 2004 period. Net cash provided by operating activities was $39.7 million for 2004 compared to $22.1 million for 2003. The $17.6 million increase in 2004 was primarily attributable to a $13.8 million improvement in net income (loss) driven primarily by increased average store sales and a $6.7 million increase in depreciation and amortization (a non-cash expense) due to significantly more stores in operation in 2004 than in 2003. Net cash provided by operating activities for 2002 was $6.0 million. The $16.1 million increase from 2002 to 2003 was primarily the result of an $9.6 million improvement in our net loss driven by increased average store sales and a $6.4 million increase in accounts payable and cash overdraft due to the substantially greater number of store openings in late 2003 than in late 2002.

        Investing Activities.    Net cash used in investing activities was $53.3 million for the nine months ended September 30, 2005 compared to net cash used in investing activities of $72.2 million for the comparable period in 2004. The $18.9 million decrease related to lower capital expenditures in 2005 as we opened 52 stores in the nine months ended September 30, 2005, compared with 75 stores in the nine months ended September 30, 2004. Net cash used in investing activities was $95.6 million for 2004 compared to $86.1 million for 2003. The increase in cash used in investing activities was primarily as a result of higher capital expenditures as we opened 104 stores in 2004, compared to 76 in 2003. We used $48.6 million in cash for investing activities in 2002. The $37.5 million increase in cash used for investing activities from 2002 to 2003 was due to higher capital expenditures as we opened 76 stores in 2003 compared to 57 in 2002.

        Financing Activities.    Net cash provided by financing activities was $2.7 million for the nine months ended September 30, 2005 compared to $41.2 million for the nine months ended September 30, 2004. The decrease in cash provided by financing activities in the 2005 period was attributable to decreased financing requirements as a result of improvements in our net cash provided by operating activities and fewer store openings in the nine months ended September 30, 2005 compared to the comparable period in 2004. Net cash provided by financing activities was $55.9 million for 2004 compared to $64.0 million for 2003. The decrease in cash provided by financing activities in 2004 was attributable to decreased financing requirements as a result of our strong improvement in net cash provided by operating activities, which was partially offset by more store openings in 2004. Our net cash provided by financing activities in 2002 was $42.6 million. We used about $21.4 million more cash for financing activities in 2003 compared to 2002 as a result of increased financing requirements resulting from more store openings in 2003.

        Liquidity and Capital Expenditures.    We will use the proceeds from this offering to repay the $4.6 million balance outstanding at September 30, 2005 under our $30 million revolving line of credit with McDonald's, to provide additional long-term capital to support the growth of our business (primarily through opening new stores), to continue to maintain our existing stores and for general corporate purposes. We do not expect McDonald's to continue to provide us with financing in the future. Therefore, we expect to maintain our business, expand our store base and further implement our growth strategy primarily using cash flow from operations, the proceeds from this offering and third-party financing. We currently expect that our total capital expenditures for 2005 will be about $75 million, and we expect to incur capital expenditures of about $95 million in 2006, relating primarily to our construction of new stores

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