Chipotle Mexican Grill, Inc. Announces First Quarter 2011 Results

Chipotle Mexican Grill, Inc. (NYSE: CMG) today reported financial results for its first quarter ended March 31, 2011.

Highlights for the first quarter of 2011 as compared to the first quarter of 2010 include:

• Revenue increased 24.3% to $509.4 million
• Comparable restaurant sales increased 12.4%
• Restaurant level operating margin was 25.2%, a decrease of 90 basis points
• Net income was $46.4 million, an increase of 22.6%
• Diluted earnings per share was $1.46, an increase of 22.7%

“We are pleased to have begun 2011 with a strong quarter, and that we continue to drive great results while remaining true to our vision to change the way people think about and eat fast food. By focusing on finding the best ingredients we can get, preparing food using classic cooking techniques, and developing a people culture that is as unique as our food culture, we are building a very different kind of restaurant company and producing great results for our shareholders," said Steve Ells, founder, chairman and co-CEO of Chipotle.

First quarter 2011 results

Revenue for the quarter was $509.4 million, up 24.3% from the prior year period. The growth in revenue was the result of new restaurants not in the comparable base and a 12.4% increase in comparable restaurant sales. Comparable restaurant sales growth was primarily driven by increased traffic in the quarter.

During the quarter Chipotle opened 12 new restaurants, including one relocation, bringing the total restaurant count to 1,095.

Restaurant level operating margin was 25.2% in the quarter, a decrease of 90 basis points over the prior year period. The decrease was primarily driven by increased food costs and increased promotional spend, partially offset by the positive impact of comparable restaurant sales growth.

G&A costs were 6.3% of revenue, down 10 basis points from the prior year period. The decrease as a percent of revenue was driven by the impact of comparable restaurant sales growth, partially offset by an increase in stock-based compensation.

Net income for the first quarter of 2011 was $46.4 million, or $1.46 per diluted share, compared to $37.8 million, or $1.19 per diluted share, in the first quarter of 2010.

"The strength of our people culture continues to be one of the greatest drivers of our business. With 200 Restaurateurs, and more who have come through the ranks of Restaurateur and gone on to regional leadership positions, more than half of our restaurants are now directly overseen by someone from our Restaurateur program. These extraordinary managers are raising the bar in terms of our restaurant operations, building greater efficiencies, and providing us with the future leaders we will need to help ensure our continued success," said Monty Moran, co-CEO of Chipotle.

Outlook

For the full year 2011, management expects the following:

• 135-145 new restaurant openings
• Mid single digit comparable restaurant sales growth
• An effective tax rate of approximately 38.3%

Definitions

The following definitions apply to these terms as used throughout this release:

Comparable restaurant sales increases represent the change in period-over-period sales for the comparable restaurant base. A restaurant becomes comparable in its 13 ^th full calendar month of operation.

Average restaurant sales refers to the average trailing 12-month sales for restaurants in operation for at least 12 full calendar months.

Restaurant level operating margin represents total revenue less restaurant operating costs, expressed as a percent of total revenue.

Logos, product and company names mentioned are the property of their respective owners.

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