Summary of Chipotle Mexican Grill, Inc. Conference Call Company Overview - **Company**: Chipotle Mexican Grill, Inc. (NYSE:CMG) - **Industry**: Fast Casual Restaurants - **Participants**: - Brian Niccol - Chairman and Chief Executive Officer - Jack Hartung - Chief Financial Officer - David Tarantino - Analyst at Baird Key Points Vision and Growth Strategy - Chipotle aims to grow into a $10 billion brand with over 5,000 locations and average unit volumes (AUV) of $2.5 million, with potential to reach 3 million to 3.5 million AUV in the near term [3][4][6] - The company has pivoted its growth target to potentially exceed 6,000 restaurants, driven by strong digital business growth and dining room recovery [4][7] Digital Business and Sales - The digital business is generating approximately $2 billion to $3 billion, translating to over $1 million in AUV per restaurant [5] - Chipotle has 21 million members in its rewards program, which supports digital sales growth [10] - The company is focused on maintaining a balance between in-restaurant and digital sales, with both channels expected to grow [10][34] Unit Expansion - Chipotle plans to open around 200 new locations in the current year, with potential for higher numbers in the future [11][12] - The company emphasizes the importance of physical access to restaurants as a key barrier to growth [12] - The operational capability and people pipeline are being developed to support this expansion [12][15] International Expansion - Chipotle is exploring opportunities in Europe, with a focus on different restaurant formats and a digital system to support openings [21][22] - The company anticipates a learning period of 18 to 24 months before significant international growth can be realized [24][26] Same Store Sales and Brand Strength - Same store sales increased over 20% compared to 2019, attributed to strong brand commitment to quality ingredients and customer experience [27][28] - The digital system continues to be a growth driver, with new menu items like quesadillas enhancing customer engagement [28][29] Pricing Strategy - Chipotle has implemented a price increase of approximately 3.5% to 4% to cover rising labor costs, while maintaining a strong value proposition [41][47] - The company believes it has significant pricing power and can adjust prices as needed without losing customer loyalty [42][43] Margin and Economic Model - New restaurants are generating cash returns in the 40% range, with potential to increase to 60-70% over time [19][20] - The company is adjusting its economic model to reflect changes in pricing and labor costs, while maintaining profitability [48][50] Conclusion - Chipotle is positioned for robust growth through a combination of digital expansion, unit growth, and international opportunities, while maintaining strong brand loyalty and operational efficiency [32][54]

Chipotle Mexican Grill, Inc. (NYSE:CMG) Conference Call Summary Company Overview - **Company**: Chipotle Mexican Grill, Inc. - **Event**: Piper Sandler 41st Annual Consumer Marketplace Conference - **Date**: June 3, 2021 - **Executives Present**: Brian Niccol (Chairman and CEO), Jack Hartung (Chief Financial Officer) Key Points Company Positioning and Leadership - Chipotle's leadership has been validated during challenging times, showcasing a strong culture and effective decision-making processes [4][5] - The company is debt-free and maintains a strong financial position, allowing for consistent investment in its workforce [4][5] - The leadership team has demonstrated expertise in navigating supply chain challenges without major disruptions, enhancing relationships with suppliers [7][8] Consumer Engagement and Brand Appeal - Chipotle's commitment to "food with integrity" and customized offerings continues to drive consumer interest [5][13] - The brand has broadened its appeal by removing friction in the customer experience, making it more accessible to a wider audience [13][14] - The rewards program has grown significantly, with over 20 million members, indicating strong consumer engagement [16][19] Market Dynamics and Consumer Behavior - The reopening of the economy and stimulus measures have positively impacted consumer spending and dining behaviors [17][18] - Chipotle is observing a shift in consumer habits, with a blend of pre-pandemic behaviors and new habits formed during the pandemic [17][18] Employee Engagement and Labor Market - The company has increased its average hourly wage to $15, which has attracted new talent and retained existing employees [26][28] - There is a focus on educating employees about the company's purpose and growth opportunities, which is crucial for retention [25][26] Growth Opportunities and Expansion - Chipotle sees significant potential for growth, with a target of 6,000 units in the U.S. and ongoing international expansion efforts in the U.K. and France [29][33] - The company is leveraging its digital systems and innovative asset designs to enhance market entry strategies [35] Financial Performance and Future Outlook - The company is optimistic about its economic performance, with expectations of increasing average unit volumes (AUVs) beyond 2.5 million [37][38] - There is a clear strategy in place to continue expanding the brand's footprint while maintaining operational clarity and cultural integrity [37][38] Additional Insights - The leadership team emphasizes the importance of maintaining open communication with employees, which has been critical during the pandemic [10][11] - Chipotle's approach to employee wages and benefits is seen as a proactive measure to lead in the competitive labor market [28][26] - The company is focused on converting new customers into loyal patrons, recognizing the opportunity to grow its customer base significantly [21][22] This summary encapsulates the key insights from the conference call, highlighting Chipotle's strategic positioning, consumer engagement, employee focus, and growth potential in the market.

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________ FORM 10-Q ______________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-32731 ______________________________ CHIPOTLE MEXICAN GR ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________ FORM 10-Q ______________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-32731 ______________________________ CHIPOTLE MEXICAN GRILL, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________ FORM 10-Q ______________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-32731 ______________________________ CHIPOTLE MEXICAN GRILL, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-32731 CHIPOTLE MEXICAN GRILL, INC. (Exact name of registrant as specified in its charter) Delaware 84-1219301 (State or other juris ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________ FORM 10-Q ______________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-32731 ______________________________ CHIPOTLE MEXICAN GR ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________ FORM 10-Q ______________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-32731 ______________________________ CHIPOTLE MEXICAN GRILL I ...