Chipotle 2006 Annual Report Download - page 12

Available Information
We maintain a website at www.chipotle.com. The information on or available through our website is not,
and should not be considered, a part of this report. You may access our annual reports on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, as well as other reports
relating to us that are filed with or furnished to the SEC free of charge at our website as soon as reasonably
practicable after such material is electronically filed with, or furnished to, the SEC.
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. Forward-looking statements include our estimates of the amount of certain
expected expenses for 2007, as well as the number of restaurants that we expect to open in 2007 and potential
changes in our comparable restaurant sales during 2007. 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 in this 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.
Increasing our sales and profitability depends substantially on our ability to open new restaurants and is
subject to many unpredictable factors.
There were 581 Chipotle restaurants as of December 31, 2006. We plan to open a significant number of new
restaurants over the next three years. We may not be able to open new restaurants as quickly as planned. We have
experienced delays in opening some restaurants and that could happen again. Delays or failures in opening new
restaurants could materially and adversely affect our growth strategy and our expected results. As we operate
more restaurants, our rate of expansion relative to the size of our restaurant base will decline. In addition, one of
our biggest challenges is locating and securing an adequate supply of suitable new restaurant sites. Competition
for those sites in our target markets is intense, and lease costs are increasing (particularly for urban locations).
Our ability to open new restaurants also depends on other factors, including:
• obtaining and negotiating leases with acceptable terms;
• hiring and training qualified operating personnel in the local market;
• managing construction and development costs of new restaurants at affordable levels, particularly in
competitive markets;
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