Chipotle 2008 Annual Report Download - page 29

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lease calculations, which were not recognized in our 2005 and prior consolidated financial statements. As a
result, we recognized an additional $2.6 million in occupancy costs in the current period to correct this
misstatement.
See Note 1 of our Consolidated Financial Statements included in Item 8, “Financial Statements and
Supplementary Data” for additional disclosure on the accounting adjustments.
Restaurant Openings, Relocations and Closures
The following table details restaurant unit data for our company-operated and franchised locations for the
years indicated.
For the years ended
December 31,
2008 2007 2006
Company-operated
Beginning of year .............................................. 704 573 481
Openings .................................................... 136 125 94
Relocations and closures ........................................ (3) (2) (2)
Franchise acquisitions .......................................... — 8 —
End of year ................................................... 837 704 573
Franchises, end of the year ......................................... — — 8
Total restaurants, end of year ....................................... 837 704 581
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
2008 over
2007
%
increase
2007 over
20062008 2007 2006
(dollars in millions)
Restaurant sales ...................... $1,332.0 $1,085.0 $819.8 22.8% 32.4%
Average restaurant sales ............... $ 1.763 $ 1.734 $1.611 1.7% 7.6%
Comparable restaurant sales increase ..... 5.8% 10.8% 13.7%
Number of company operated restaurants as
of the end of the year ................ 837 704 573 18.9% 22.9%
Number of company operated restaurants
opened in the year, net of closures and
relocations ........................ 133 123 92
The significant factors contributing to our increases in sales were new restaurant openings and comparable
restaurant sales increases. Restaurant sales from restaurants not yet in the comparable base contributed to $182.3
million of the increase in sales in 2008, of which $93.3 million was attributable to restaurants opened during the
year. In 2007, restaurant sales from restaurants not yet in the comparable restaurant base contributed to $167.2
million of the increase in sales, of which $83.8 million was attributable to restaurants opened in 2007.
Comparable restaurant sales increases contributed to $62.6 million and $98.1 million of the increase in
restaurant sales in 2008 and 2007, respectively. In 2008 the substantial majority of our comparable restaurant
27
Annual Report