TEAM MEMBERS: CRISTA GALLAGHER, BRIAN SMOLE, TIMISHA

PORCHER, JATINDER BHAMBRA & HEATHER MICHEALSON

HOW IT ALL BEGAN

LEADERS & LEADERSHIP

• Solid Fundamentals- financial stability, success & continued growth

• Co-CEOs: Steve Ells & Monty Moran

• Ells’ vision – Food with Integrity

• Moran’s vision – Culture of Empowerment

• Other Leadership-Driven Initiatives

FAST-CASUAL COMPETITORS

2010 COMPANY RESULTS Fourth Quarter Results:• Revenue increased 24.5%

to $482.5 million • Comparable restaurant

sales increased 12.6% • Restaurant level

operating margin was 25.9%, an increase of 140 basis points

• Net income was $46.4 million, an increase of 47.0%

• Diluted earnings per share was $1.47, an increase of 48.5%

Yearly Results:• Revenue increased 20.9%

to $1.84 billion • Comparable restaurant

sales increased 9.4% • Restaurant level

operating margin was 26.7%, an increase of 180 basis points

• Net income was $ 179.0 million, an increase of 41.1%

• Diluted earnings per share was $5.64, an increase of 42.8%

CHIPOTLE PRICE PERFORMANCE

Source: http://eresearch.fidelity.com/eresearch/evaluate/snapshot.jhtml?symbols=CMG

CHIPOTLE PRICE PERFORMANCE

Source: http://eresearch.fidelity.com/eresearch/evaluate/snapshot.jhtml?symbols=CMG

OPERATIONS PERFORMANCE

2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010

Net Income

-7.71 6.1 37.7 41.4 70.6 78.2 127 179

Free Cash Flow (FCF)

-64.031 -55.928 -5.569 6.297 5.923 46.507 143.673 176.191

Operating Income

11.7 29.6 62.1 100 158 186 271 363

Revenue

316 471 628 823 1086 1332 1518 1836

(75.0) (25.0) 25.0 75.0 125.0 175.0 225.0 275.0 325.0 375.0

100.0 300.0 500.0 700.0 900.0

1,100.0 1,300.0 1,500.0 1,700.0 1,900.0

Do

lla

rs

($

M)

SAVINGS vs. INVESTMENT

FCF-NI = Savings / (Investment)

2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010

FCF-NI

-56.321 -62.028 -43.269 -35.103 -64.677 -31.693 16.673 -2.8090000000000

2

%Operating Margin

0.0370253164556

963

0.0628450106157

113

0.0988853503184

717

0.1215066828675

58

0.1454880294659

3

0.1396396396396

4

0.1785243741765

48

0.1977124183006

54

%Net Income Margin

-0.0243987341772

152

0.0129511677282

378

0.0600318471337

58

0.0503037667071

689

0.0650092081031

308

0.0587087087087

087

0.0836627140974

967

0.0974945533769

064

(60.00)

(40.00)

(20.00)

-

20.00

40.00

60.00

-7.50%

-2.50%

2.50%

7.50%

12.50%

17.50%

22.50%

Do

lla

rs (

$M

)

2010 FINANCIAL ANALYSIS

Revenue ($B) TTM $1.836 $1.542 -

Earnings per Share (diluted)

TTM $5.94 $3.62 -

Operating Margin TTM 16.02% 12.00% 17.98%

Return on Assets TTM5yr

17.23%12.08%

12.81%10.24%

9.49%-

Return on Equity TTM5yr

23.42%16.03%

18.57%14.44%

24.79%-

INDUSTRY

Industry: RestaurantsSector: Casual Dining

Source: Standard & Poor Stock Report 2/19/11, TTM 12/31/10

“A New Way of Thinking about Leadership…..”

STEVE ELLS“THE FOOD GUY”

• Food with Integrity• A Few Things, Thousands of

Ways• Food Served Fast…So that

Customers Can Enjoy it Slowly

• Co-CEO , Chairman and Founder of Chipotle

• Visionary• Graduated from the

University of Colorado and Attended Culinary Institute of America

“I just wanted to build a place where you could eat delicious food made of the finest ingredients quickly and affordably.” ~ Steve Ells

“FOOD WITH INTEGRITY”

• Animals– Naturally Raised

Pork, Beef, Chicken, and Dairy

• Raised in a humane way

• Never given antibiotics or added hormones

• Vegetarian diet

• Environment– Organic– Family Farmed– Local

• People– Importance of the

people behind every ingredient purchased, burrito made, and customer served

A FEW THINGS, THOUSANDS OF WAYS

• Chipotle’s food is “totally customizable”

• Dietary Options:– Vegetarian– Vegan– Gluten-free

FOOD SERVED FAST…SO THAT CUSTOMERS CAN ENJOY IT

SLOWLY

• Customers select exactly what they want, speaking directly to the employees as they prepare the meal

• Customers don’t receive the “fast food” experience

• Despite long lines, service is quick and easy

MONTY MORAN

• Co-CEO since 2009

• Position(s) prior to being appointed

• Unconventional approach of having 2 leaders

“THE PEOPLE GUY”

• How he defines a “top-performer”• Early hiring practices• Enhancing the customer

“experience”• Overhauling the career ladder

RESTAURATEUR PROGRAM

• Unique employee incentive program

– Encourages staff to become managers– Rewards the elite managers; only the top are

selected & invited to participate– Creates culture which attracts & retains top

performers

• 90% of managers promoted internally

CORPORATE CULTURE

• Language instruction– English to Spanish-speaking &

Spanish to English-speaking• Employees learn “real” culinary

skills• Cross-trained to work multiple

stations• Rich benefits

– Medical, dental, vision– 401k– Paid vacation– Free meals– Paid Sabbatical leave

SUSTAINABILITY

• Ingredient sourcing- naturally raised meats

- local produce

• Solar panels• Green design• Donations to Farm Aid

CHARITABLE GIVING

• Annual scholarship

• No junk campaign

• Partnership with The Lunch Box

• Local involvement– Momma’s organic market – Peoria– Food bank healthy kids contest – Sarasota

• Halloween contest

CONNECTIONS

• “America's Next Great Restaurant”• New media• 30 seconds of fame• Facebook Deals

TRANSFORMATIONAL LEADERS

CONTINUED SUCCESS

THANK YOU &

ENJOY THE CHIPS

& SALSA!