Chipotle Mexican Grill Files 2023 Annual Report on Form 10-K

TL;DR

<b>Chipotle Mexican Grill has filed its 2023 10-K report detailing financial data and equity information.</b>

AI Summary

CHIPOTLE MEXICAN GRILL INC (CMG) filed a Annual Report (10-K) with the SEC on February 8, 2024. Chipotle Mexican Grill, Inc. filed its annual report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 610 Newport Center Drive, Suite 1100, Newport Beach, CA 92660. The filing includes data related to various equity accounts such as Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income for fiscal years 2020-2023. Information regarding stock awards, stock options, SARs, RSUs, and performance shares for different plan years is also detailed.

Why It Matters

For investors and stakeholders tracking CHIPOTLE MEXICAN GRILL INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Chipotle's financial performance and position for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed breakdown of equity accounts and stock-based compensation plans offers insights into the company's capital structure and its strategies for employee incentives and shareholder value.

Risk Assessment

Risk Level: low — CHIPOTLE MEXICAN GRILL INC shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate, significant negative news or unexpected events, indicating a low level of immediate risk from this specific document.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Chipotle's operational performance and strategic outlook for 2024.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-08 — Filing Date (Date of submission)
• 0001562762-24-000023 — Accession Number (Unique identifier for the filing)
• 001-32731 — SEC File Number (SEC's file number for the company)

Key Players & Entities

• CHIPOTLE MEXICAN GRILL INC (company) — Filer name
• CMG (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-08 (date) — Filing date
• 610 Newport Center Drive, Suite 1100, Newport Beach, CA 92660 (location) — Business address

Forward-Looking Statements

• Chipotle's stock price will see a positive short-term reaction due to the share repurchase authorization. (CHIPOTLE MEXICAN GRILL INC) — medium confidence, target: 2024-03-08
• The share repurchase program will contribute to an increase in earnings per share (EPS) for Chipotle in future quarters. (CHIPOTLE MEXICAN GRILL INC) — high confidence, target: 2024-09-30

FAQ

Industry Context

Chipotle Mexican Grill operates in the fast-casual restaurant sector, a segment of the broader food service industry characterized by quick service and higher quality ingredients than traditional fast food.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Analyze the full 10-K document for detailed financial statements, including revenue, net income, and balance sheet information.
2. Examine the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and future outlook.
3. Review the Risk Factors section to understand potential challenges and uncertainties facing Chipotle Mexican Grill.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-08: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year 2023, following previous filings for earlier fiscal years.

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share CMG New York Stock Exchan

Filing Documents

• cmg-20231231x10k.htm (10-K) — 4378KB
• cmg-20231231x10kg003.jpg (GRAPHIC) — 148KB
• cmg-20231231x10kg001.jpg (GRAPHIC) — 14KB
• cmg-20231231x10kg002.jpg (GRAPHIC) — 83KB
• cmg-20231231xex10_10.htm (EX-10.10) — 1112KB
• cmg-20231231xex10_25.htm (EX-10.25) — 264KB
• cmg-20231231xex10_26.htm (EX-10.26) — 24KB
• cmg-20231231xex10_26g001.jpg (GRAPHIC) — 21KB
• cmg-20231231xex10_26g002.jpg (GRAPHIC) — 5KB
• cmg-20231231xex21_1.htm (EX-21.1) — 15KB
• cmg-20231231xex23_1.htm (EX-23.1) — 9KB
• cmg-20231231xex31_1.htm (EX-31.1) — 17KB
• cmg-20231231xex31_2.htm (EX-31.2) — 17KB
• cmg-20231231xex32_1.htm (EX-32.1) — 10KB
• cmg-20231231xex97_1.htm (EX-97.1) — 119KB
• cmg-20231231xex97_1g001.jpg (GRAPHIC) — 3KB
• 0001562762-24-000023.txt (&nbsp;) — 18159KB
• cmg-20231231.xsd (EX-101.SCH) — 62KB
• cmg-20231231_cal.xml (EX-101.CAL) — 100KB
• cmg-20231231_def.xml (EX-101.DEF) — 186KB
• cmg-20231231_lab.xml (EX-101.LAB) — 544KB
• cmg-20231231_pre.xml (EX-101.PRE) — 436KB
• cmg-20231231x10k_htm.xml (XML) — 3808KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 19 Item 1C. Cybersecurity 19 Item 2.

Properties

Properties 20 Item 3.

Legal Proceedings

Legal Proceedings 21 Item 4. Mine Safety Disclosures 21 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6. Reserved 24 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 7A. Quantitative and Qualitative Disclosure About Market Risk 32 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 33 Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 33 Consolidated Balance Sheets as of December 3 1, 2023 and 2022 35 Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2023, 2022 and 2021 36 Consolidated Statements of Shareholders' Equity for the years ended December 31, 2023, 2022 and 2021 37 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021 38

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 39 Note 1 – Description of Business and Summary of Significant Accounting Policies 39 Note 2 – Supplemental Balance Sheet Information 45 Note 3 – Revenue Recognition 46 Note 4 – Fair Value Measurements 47 Note 5 – Equity Investments 49 Note 6 – Income Taxes 49 Note 7 – Shareholders' Equity 52 Note 8 – Stock-Based Compensation and Employee Benefit Plans 52 Note 9 – Leases 56 Note 10 – Earnings Per Share 57 Note 11 – Commitments and Contingencies 57 Note 12 – Debt 57 Note 13 – Related Party Transactions 58 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 58 Item 9A.

Controls and Procedures

Controls and Procedures 58 Item 9B. Other Information 61 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 61 PART III Item 10. Directors, Executive Officers and Corporate Governance 61 Item 11.

Executive Compensation

Executive Compensation 62 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 62 Item 13. Certain Relationships and Related Transactions, and Director Independence 62 Item 14. Principal Accounting Fees and Services 62 PART IV Item 15. Exhibits, Financial Statement Schedules 63 Item 16. Form 10-K Summary 65

Signatures

Signatures 66 Table of Contents 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 ri

BUSINESS

ITEM 1. BUSINESS General Chipotle Mexican Grill, Inc., a Delaware corporation, together with its subsidiaries ("Chipotle," "we," "us," or "our") owns and operates Chipotle Mexican Grill restaurants, which feature a relevant menu of burritos, burrito bowls (a burrito without the tortilla), quesadillas, tacos, and salads. We strive to cultivate a better world by serving responsibly sourced, classically cooked, real food with wholesome ingredients and without artificial colors, flavors or preservatives. We are passionate about providing a great guest experience and making our food more accessible to everyone while continuing to be a brand with a demonstrated purpose. Our first Chipotle restaurant opened in Denver, Colorado in 1993. Over 30 years later, our devotion to seeking out high-quality ingredients, raised with respect for animals, farmers, and the environment, remains at the core of our commitment to Food with Integrity. As of December 31, 2023, we owned and operated 3,371 Chipotle restaurants throughout the United States ("U.S.") and 66 international Chipotle restaurants. We manage our operations based on eight regions and aggregate our operations to one reportable segment. Our revenue is derived from sales by our restaurants. 3 Table of Contents Business Strategy We are a brand with a demonstrated purpose of Cultivating a Better World. Our mission is to win today while we grow our future by focusing on five key fundamental strategies: Sustaining world class people leadership by developing and retaining diverse talent at every level ; Running successful restaurants with a people accountable culture that provides great Food with Integrity while delivering exceptional in-restaurant and digital experiences ; Making the brand visible, relevant, and loved to improve overall guest engagement; Amplifying technology and innovation to drive growth and productivity at our restaurants, support centers and in our supply chain; and Expanding access a

View Full Filing

View this 10-K filing on SEC EDGAR