Chipotle 2013 Annual Report Download - page 59

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and will proceed as a single action. On March 20, 2013, an amended and consolidated complaint for the cases
was filed by plaintiff Saleem Mohammed. On May 22, 2013, the Company filed a motion to dismiss the
consolidated cases, and a ruling on the motion remains pending. The Company has agreed to a proposed
settlement of the consolidated cases the terms of which are subject to court approval and ratification by the
Company’s Board of Directors. Under the proposed settlement agreement, the Company would pay the plaintiffs’
attorneys’ fees which have been accrued and agree to put in place additional oversight procedures related to
employee work authorization compliance. In the event the settlement is not approved, the Company intends to
continue to defend the cases vigorously, but it would not be possible at this time to reasonably estimate the
outcome of or any potential liability from these cases.
Miscellaneous
The Company is involved in various other claims and legal actions that arise in the ordinary course of
business. The Company does not believe that the ultimate resolution of these actions will have a material adverse
effect on the Company’s financial position, results of operations, liquidity or capital resources. However, a
significant increase in the number of these claims, or one or more successful claims under which the Company
incurs greater liabilities than the Company currently anticipates, could materially and adversely affect the
Company’s business, financial condition, results of operations and cash flows.
10. Quarterly Financial Data (Unaudited)
Summarized unaudited quarterly financial data:
2013
March 31 June 30 September 30 December 31
Revenue .............................. $ 726,751 $ 816,786 $ 826,907 $ 844,147
Operating income ....................... $ 120,044 $ 146,418 $ 137,154 $ 129,104
Net income ............................ $ 76,584 $ 87,853 $ 83,379 $ 79,622
Basic earnings per share .................. $ 2.47 $ 2.84 $ 2.70 $ 2.57
Diluted earnings per share ................ $ 2.45 $ 2.82 $ 2.66 $ 2.53
2012
March 31 June 30 September 30 December 31
Revenue .............................. $ 640,603 $ 690,932 $ 700,528 $ 699,161
Operating income ....................... $ 102,224 $ 133,790 $ 117,663 $ 102,188
Net income ............................ $ 62,664 $ 81,683 $ 72,300 $ 61,353
Basic earnings per share .................. $ 2.00 $ 2.58 $ 2.28 $ 1.96
Diluted earnings per share ................ $ 1.97 $ 2.56 $ 2.27 $ 1.95
57
Annual Report