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CHIPOTLE MEXICAN GRILL INC

For the period ended Dec 31, 2023. Filed Feb 8, 2024.

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About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Feb 8, 2024

CMG$35.74+3.8%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Table of Contents

PART I
Item 1.Business3
Item 1A.Risk Factors9
Item 1B.Unresolved Staff Comments19
Item 1C.Cybersecurity19
Item 2.Properties20
Item 3.Legal Proceedings21
Item 4.Mine Safety Disclosures21
PART II
Item 5.Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities22
Item 6.Reserved24
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations24
Item 7A.Quantitative and Qualitative Disclosure About Market Risk32
Item 8.Financial Statements and Supplementary Data33
Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)33
Consolidated Balance Sheets as of December 31, 2023 and 202235
Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2023, 2022 and 202136
Consolidated Statements of Shareholders’ Equity for the years ended December 31, 2023, 2022 and 202137
Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 202138
Notes to Consolidated Financial Statements39
Note 1 – Description of Business and Summary of Significant Accounting Policies39
Note 2 – Supplemental Balance Sheet Information45
Note 3 – Revenue Recognition46
Note 4 – Fair Value Measurements47
Note 5 – Equity Investments49
Note 6 – Income Taxes49
Note 7 – Shareholders’ Equity52
Note 8 – Stock-Based Compensation and Employee Benefit Plans52
Note 9 – Leases56
Note 10 – Earnings Per Share57
Note 11 – Commitments and Contingencies57
Note 12 – Debt57
Note 13 – Related Party Transactions58
Item 9.Changes in and Disagreements With Accountants on Accounting and Financial Disclosure58
Item 9A.Controls and Procedures58
Item 9B.Other Information61
Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections61
PART III
Item 10.Directors, Executive Officers and Corporate Governance61
Item 11.Executive Compensation62
Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters62
Item 13.Certain Relationships and Related Transactions, and Director Independence62
Item 14.Principal Accounting Fees and Services62
PART IV
Item 15.Exhibits, Financial Statement Schedules63
Signatures66

Part I

Cautionary Note Regarding Forward-Looking Statements

This report includes “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including projected cash from operations, expected capital expenditures for 2024 and all other statements that are not historical facts. We use words such as “may,” “will,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “think,” “estimate,” “seek,” “expect,” “predict,” “could,” “project,” “potential”, “goal” and other similar terms and phrases, including references to assumptions, to identify forward-looking statements. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the risks and uncertainties described in this report under the heading “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” so you should not place undue reliance on forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including: increasing wage inflation and the competitive labor market, including as a result of regulations such as California AB 1228, which impacts our ability to attract and retain qualified employees and has resulted in occasional staffing shortages; increases in ingredient and other operating costs and the inability of our third-party suppliers and business partners to fulfill their responsibilities and commitments due to inflation, global conflicts, climate change, our Food with Integrity philosophy, tariffs or trade restrictions and supply shortages; increasing supply costs (including beef, tortillas, queso, salsa, beans and rice); risks of food safety incidents and food-borne illnesses; risks associated with our reliance on certain information technology systems operated by us or by third parties and potential failures, outages or interruptions; privacy and cybersecurity risks, including risk of breaches, unauthorized access, theft, modification, destruction or ransom of guest or employee personal or confidential information stored on our network or the network of third-party providers; the impact of competition, including from sources outside the restaurant industry; the competitive labor market and changes in the availability and cost of labor and the impact of any union organizing efforts and our responses to such efforts; the financial impact of increasing our average hourly wage; the impact of federal, state or local government regulations relating to our employees, employment practices, restaurant design and construction, and the sale of food or alcoholic beverages; our ability to achieve our planned growth, such as the costs and availability of suitable new restaurant sites and the equipment needed to fully outfit new restaurants, construction materials and contractors and the expected costs to accelerate our international expansion through franchise restaurants in the Middle East; the uncertainty of our ability to achieve expected levels of comparable restaurant sales due to factors such as changes in guests' perceptions of our brand, including as a result of actual or rumored food safety concerns or other negative publicity, decreased overall consumer spending, including as a result of high inflation, mass layoffs, fears of possible recession and higher energy costs, or the inability to increase menu prices or realize the benefits of menu price increases; risks associated with our digital business, including risks arising from our reliance on third party delivery services; and risks relating to litigation, including possible governmental actions and potential class action litigation related to food safety incidents, cybersecurity incidents, employment or privacy laws, advertising claims or other matters. We are including this Cautionary Note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We expressly disclaim any obligation to update or revise any forward-looking statements after the date of this report as a result of new information, future events or other developments, except as required by applicable laws and regulations.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.