Chipotle 2006 Annual Report Download - page 30

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Restaurant Openings, Relocations and Closures
The following table details restaurant unit data for our company-owned and franchised locations for the
years indicated.
For the year ended December 31,
2006 2005 2004
Company-owned
Beginning of year ..................................... 481 401 298
Openings ............................................ 94 80 104
Relocations .......................................... (1) — —
Closures ............................................. (1) — —
Franchise sale ........................................ — — (1)
End of year .......................................... 573 481 401
Franchises
Beginning of year ..................................... 8 8 7
Franchise purchase .................................... — — 1
End of year .......................................... 8 8 8
Total restaurants at end of year ............................. 581 489 409
Results of Operations
Our results of operations as a percentage of revenue and period-over-period variances are discussed in the
following section. As our business grows, as we open more restaurants and hire more employees, our restaurant
operating costs increase.
Restaurant Sales
For the years ended
December 31,
%
increase
2006 over
2005
%
increase
2005 over
20042006 2005 2004
(dollars in millions)
Restaurant sales ................................. $819.8 $625.1 $468.6 31.1% 33.4%
Average restaurant sales .......................... $1.611 $1.440 $1.361
Comparable restaurant sales increase ................ 13.7% 10.2% 13.3%
Number of company-operated restaurants as of the end of
the year ...................................... 573 481 401
Number of company-operated restaurants opened in the
year, net of closures and relocations ............... 92 80 103
The significant factors contributing to our increase in sales in 2006 were new restaurant openings and strong
comparable restaurant sales performance. Restaurant sales from restaurants not yet in the comparable base
contributed to $110.8 million of the increase in sales in 2006, of which $46.5 million was attributable to
restaurants opened during the year. In 2005, restaurant sales from restaurants not yet in the comparable restaurant
base contributed to $109.1 million of the increase in sales, of which $47.3 million was attributable to restaurants
opened in 2005.
Comparable restaurant sales increases contributed to $84.1 million and $47.4 million of the increase in restaurant
sales in 2006 and 2005, respectively. Comparable restaurant sales increases were driven primarily by an increasing
awareness of our brand and our focus on improving service time. The substantial majority of our comparable restaurant
sales growth was due to an increase in the number of transactions, and the remainder was driven primarily by menu
price increases in markets in conjunction with the introduction of naturally-raised beef or chicken.
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