Chipotle 2009 Annual Report Download - page 33

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Quarterly Financial Data/Seasonality
The following table presents consolidated statement of income data for each of the eight quarters in the
period ended December 31, 2009. The operating results for any quarter are not necessarily indicative of the
results for any subsequent quarter.
2009 Quarters Ended
Mar. 31 June 30 Sept. 30 Dec. 31
(dollars in millions)
Revenue ...................................................... $354.5 $388.8 $387.6 $387.5
Operating income .............................................. $ 41.2 $ 57.3 $ 54.8 $ 50.4
Net income ................................................... $ 25.4 $ 35.4 $ 34.5 $ 31.6
Number of restaurants opened in quarter ............................ 26 24 26 45
Comparable restaurant sales increase ............................... 2.2% 1.7% 2.7% 2.0%
2008 Quarters Ended
Mar. 31 June 30 Sept. 30 Dec. 31
(dollars in millions)
Revenue ...................................................... $305.3 $340.8 $340.5 $345.3
Operating income .............................................. $ 26.8 $ 38.3 $ 31.1 $ 27.8
Net income ................................................... $ 17.3 $ 24.5 $ 19.5 $ 16.9
Number of restaurants opened in quarter ............................ 28 49 20 39
Comparable restaurant sales increase ............................... 10.2% 7.1% 3.1% 3.5%
Seasonal factors cause our profitability to fluctuate from quarter to quarter. Historically, our average daily
restaurant sales and net income are lower in the first and fourth quarters due, in part, to the holiday season and
because fewer people eat out during periods of inclement weather (the winter months) than during periods of
mild or warm weather (the spring, summer and fall months). Other factors also have a seasonal effect on our
results. For example, restaurants located near colleges and universities generally do more business during the
academic year. The number of trading days in a quarter can also affect our results. Overall, on an annual basis,
changes in trading dates do not have a significant impact on our results.
Our quarterly results are also affected by other factors such as the number of new restaurants opened in a
quarter and unanticipated events. New restaurants typically have lower margins following opening as a result of
the expenses associated with opening new restaurants and their operating inefficiencies in the months
immediately following opening. In addition, unanticipated events also impact our results. Accordingly, results for
a particular quarter are not necessarily indicative of results to be expected for any other quarter or for any year.
Liquidity and Capital Resources
Our primary liquidity and capital requirements are for new restaurant construction, working capital and
general corporate needs. We have a cash and short-term investment balance of $269.6 million that we expect to
utilize, along with cash flow from operations, to provide capital to support the growth of our business (primarily
through opening restaurants), to repurchase up to an additional $85.9 million of our common stock subject to
market conditions, to continue to maintain our existing restaurants and for general corporate purposes. We
believe that cash from operations, together with our cash balance, will be enough to meet ongoing capital
expenditures, working capital requirements and other cash needs over at least the next 24 months.
We haven’t required significant working capital because customers generally pay using cash or credit and
debit cards and because our operations do not require significant receivables, nor do they require significant
inventories due, in part, to our use of various fresh ingredients. In addition, we generally have the right to pay for
the purchase of food, beverage and supplies some time after the receipt of those items, generally within ten days,
thereby reducing the need for incremental working capital to support our growth.
31
Annual Report