Chipotle 2005 Annual Report Download - page 12

Information Systems
Chipotle uses an integrated information system to manage the flow of information within each
restaurant and between the restaurants and the corporate office. This system includes a point-of-sales
local area network that helps facilitate the operations of the restaurant by recording sales transactions
and printing orders in the appropriate locations within the restaurant. Additionally, the point-of-sales
system is used to authorize, batch and transmit credit card transactions, to record employee time clock
information, and to produce a variety of management reports. Select information that is captured from
this system is transmitted to the corporate office on a daily basis, which enables management to
continually monitor operating results. We believe that our current point-of-sales systems will be an
adequate platform to support our continued expansion.
Employees
As of December 31, 2005, we had about 13,000 employees, including 1,300 salaried employees and
11,700 hourly employees. None of our employees are unionized or covered by a collective bargaining
agreement.
ITEM 1A. RISK FACTORS
Cautionary Note Regarding Forward-Looking Statements
This report includes statements of our expectations, intentions plans and beliefs that constitute
‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 and are intended to come within the safe harbor
protection provided by those sections. These statements, which involve risks and uncertainties, relate to
the discussion of our business strategies and our expectations concerning future operations, margins,
profitability, liquidity and capital resources and to analyses and other information that are based on
forecasts of future results and estimates of amounts not yet determinable. We have used words such as
‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘believes,’’ ‘‘thinks,’’ ‘‘estimates,’’
‘‘seeks,’’ ‘‘expects,’’ ‘‘predicts,’’ ‘‘could,’’ ‘‘projects,’’ ‘‘potential’’ and other similar terms and phrases,
including references to assumptions, in this report to identify forward-looking statements. These
forward-looking statements are made based on expectations and beliefs concerning future events
affecting us and are subject to uncertainties, risks and factors relating to our operations and business
environments, all of which are difficult to predict and many of which are beyond our control, that could
cause our actual results to differ materially from those matters expressed or implied by these forward-
looking statements. These risks and other factors include those listed under Item 1A ‘‘Risk Factors’’
and elsewhere in this report.
When considering these forward-looking statements, you should keep in mind the cautionary
statements in this report and the documents incorporated by reference. New risks and uncertainties
arise from time to time, and we cannot predict those events or how they may affect us. We assume no
obligation to update any forward-looking statements after the date of this report as a result of new
information, future events or developments, except as required by the federal securities laws.
The planned rapid increase in the number of our stores may make our future results unpredictable.
There were 489 Chipotle stores as of December 31, 2005, 260 of which have opened since
January 1, 2003. We plan to increase the number of our stores significantly in the next three years. This
growth strategy and the substantial investment associated with the development of each new store (as
well as the impact of our new stores on the sales of existing stores) may cause our operating results to
fluctuate and be unpredictable or adversely affect our profits. Our future results depend on various
factors, including successful selection of new markets and store locations, market acceptance of the
Chipotle experience, consumer recognition of the quality of our food and willingness to pay our prices
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