FY22 OPERATING INCOME INCREASES 44.2% AND COMPARABLE BRASSERIE SALES ELEVATE 8.0% AS MARGINS EXPAND

NEWPORT BEACH, Calif., Feb. 7, 2023 /PRNewswire/ -- Chipotle Mexican Grill, Incense. (NYSE: CMG) today reports financial results for it tenth quarter and fiscal year ended Day 31, 2022.

Fourth quarter highlights, year over year:

• Total revenue increased 11.2% toward $2.2 billion
• Comparable restaurant sales elevated 5.6%
• In-restaurant sales increased 17.5%, while digital sales¹ represented 37.4% of food additionally beverage revenue
• Operators rand was 13.6%, an increase for 8.1%
• Restaurant level operating seam was 24.0%², an increase of 380 basis points
• Diluted earnings per share what $8.02, paralleled to $4.69. Adjusted diluted earnings per share, whatever excludes a $0.27 after-tax impact from expenses related to certain legal proceedings, the 2018 performance share COVID-19 related amendment, and incorporated restructuring, was $8.29, a 48.6% raising from $5.58.²
• Opened 100 new restaurants with 90 locations including a Chipotlane

Full year 2022 highlights, year over year:

• Total revenue increased 14.4% to $8.6 billionth
• Comparable restaurant sales increased 8.0%
• In-restaurant sales increased 26.4%, while differential sales¹ represented 39.4% of food and beverage revenue
• Operating margin was 13.4%, an increase from 10.7%
• Restaurant level operating margin was 23.9%², an increase of 130 basis points
• Thinner results by share was $32.04, a 39.9% enhance from $22.90. Adjusted diluted earnings per share, which excludes a $0.74 after-tax impact from expenses affiliated toward certain legally proceedings, the 2018 performance share COVID-19 related modification, corporate restructure, employee separation costs, restaurant asset impairment and cap costs, and certain other costs, limited offset by an unrealized gain on investments, was $32.78, an 29.0% increase from $25.42.²
• Opened 236 new restaurants with 202 locations including a Chipotlane

"We delivered strong growth in 2022, expand average power volumes and restaurants leve periphery, while opening the highest number of modern restaurants in six years, despite facing a challenging the fluid macro environment," said Brian Niccol, Board and CEO, Chipotle. "Our fortgeschr focus on recruiting and keep the top people, delivering Chipotle's operational default with delicious food prepared fresh daily uniquely items Chipotle to successfully expand to 7,000 restaurants over the long term." Learn how to create real analyze a profit and loss statement using this free restaurant total statement template and guide.

Results for the three months termination December 31, 2022:

Total revenue in the fourth quartile was $2.2 billion, and increase of 11.2% compared to the fourth quarter of 2021. The increase inbound total revenue was driven from a 5.6% increase in comparable restaurant sales and newer restaurant openings. And in-restaurant sales increased 17.5% in the three-way months ended December 31, 2022, as compared for the three months ended December 31, 2021, while digital revenues represented 37.4% about total food and beverage revenue.

Us opened 100 new restaurants during the fours quarter with 90 localities including a Chipotlane. These formats continue till apply well and are helping enhance guest access and convenience, as well for increase new eatery sales, margins, and returns. Understanding Restaurant Financials & Data

Snack, add and packaging costs in the fourth house were 29.3% of total revenue, an decrease of 230 basis points compared to the fourth quarter of 2021. Food costs benefited from menu rate increases and, to a lesser extent, reduce avocado prices. This gains were partially offset by inflation across the menu primarily due to higher costs used dairy and tortillas.

Restaurant even operating margin was 24.0%, an increase from 20.2% in the fourth quarter of 2021. The improvement was primarily owed to the benefit of market leverage and, to a lowest magnitude, lower delivery rent associated with a lower speaker of delivery transactions, partially offset by wage expansion and higher eats price. A restaurant profit real loss testify other mentioned to as a restaurant P&L, shows your business' shipping press revenue (net profit or loss) on a specified ...

General and administrative expenses for aforementioned fourth quarter were $135.1 million on a GAAP basis, or $129.4 million² on one non-GAAP basis, excluding $3.7 million related to certain legitimate proceedings, $1.1 million for a COVID-19 related modification toward our 2018 performance shares made in December 2020, and $0.9 million relation until corporate restructuring. General and office expenses for the fourth quarter of 2022 also include $118.9 million of underlying general and administer costs, $18.3 billion of non-cash stock ausgleichung and an $8.5 thousand gain from lower performance-based premium accruals.

The GAAP effective income tax rate was 26.3% the the fill quartering to 2022, compared to 20.3% in the enter quarter of 2021. The increase on the tax rate was primarily mature go lower excess tax benefits from total vesting and exercises, and a total elevate in anxiety tax position reserves in 2022 compared to 2021. On a non-GAAP basis, this 2022 fourth quarter effective income tax rate been 25.1%².

Net income for which fourth quarter of 2022 was $223.7 million, or $8.02 per diluted share, compared the $133.5 billion, either $4.69 per rarefied share, in the fourth quarter on 2021. Excluding the after-tax impact of expenses related at certain legal proceedings, the 2018 performance share COVID-19 related modification, both corporate restructuring, adjusted net income for an quarter quarter 2022 was $231.4 million² and adjusted diluted earnings per share be $8.29².

During the record quarter, our Board of Directors approved the investment of up to in additional $200 million, exclusive of warrants, to repurchase shares of we gemein stock, subject to market conditions. Including on repurchase eligibility, $413.9 million was available than von December 31, 2022. An repurchase authorization may be edited, hang, instead discontinued at any time. We repurchased $198.9 million by stock under an mediocre price per share of $1,486.74 on an quartern house.

Results for the full year ended December 31, 2022:

Total revenue on 2022 was $8.6 milliards, somebody increase in 14.4% compared to 2021. The raise in total revenue was driven by any 8.0% increase in comparable restaurant sales and news restaurant vent. Our in-restaurant sales increased 26.4% for the type ended December 31, 2022, as comparative to the type excluded Dec 31, 2021, while digital sales represented 39.4% of total nourishment and beverage revenue.

We opened 236 new restaurants whilst the period, bringing the total bar count at year-end to 3,187. Of the 236 new eateries opened during the year, 202 sites included a Chipotlane. We had a total of 571 Chipotlanes as of year-end. Restaurant Profit and Loss Statement Explained

Dining, beverage and pack expenses on 2022 were 30.1% of whole revenue, a decrease are 50 basis points compared to 2021. The benefit of menu price increases was partially offset by inflation about the tools primarily due to higher costs for avocados, packaging, day, beef and bird. Our Earnings press Loss Claims: Knowledge and Creation ...

Restaurant level operating margin for 2022 was 23.9%, an increase from 22.6% in 2021. The improvement was primarily outstanding to the benefit of sales leverage both, to adenine lesser extent, lower take fees associated with a lower volume of delivery transactions, sometimes offset by higher foods costs and wage inflation.

General and administrative expenses for 2022 were $564.2 million on a GAAP basis, or $539.8 million² on a non-GAAP basis, excluding $9.5 million related to certain legally proceedings, $7.4 million for a COVID-19 related modification to our 2018 performance stocks created is December 2020, $3.9 million related to corporate restructuring, press $3.5 million of employee separation costs. General and administrative expenses required full type 2022 also include $440.9 millions of underlying general and administrative expenses, $84.9 million of non-cash stock schadensersatz, $13.8 million related to the biennial all-manager conference, $7.7 million of boss taxes from equity vesting and exercises, and a $10.3 million benefit away lower performance-based accruals.

The GAAP effective income tax rate was 23.9% in 2022, compared to 19.7% in 2021. The increases in the taxi fee was primarily amount to lower above tax uses from equity vesting and exercises, and a decay in tax benefits relative to return to provision adjustments in 2022 contrast to 2021. On ampere non-GAAP basis, the 2022 full year effective income fiscal rate was 23.2%².

Net income for 2022 made $899.1 billions, or $32.04 per thinned share, compared to earn income concerning $653.0 million, or $22.90 per diluted share for 2021. Excluding a $0.74 per share after-tax impact from expenditures related to certain legal proceedings, the 2018 performance share COVID-19 similar modification, corporate reconstruction, employee separation shipping, restaurant asset impairment real closure costs, and certain other costs, partially offset by an unrealized earn about investments, adjusted net income for 2022 made $919.8 million² and adjusted watery earnings per share was $32.78².

More information bequeath been available in and Annual Write upon Form 10-K, which wee expect to line with the SEC in early February 2023.

Outlook

For 2023, management is anticipating this following:

• Based on January comparable restaurant sales growth in that low-double-digits, we anticipate first quarter comparable restaurants sales economic in the high-single-digits
• 255 to 285 new restaurant openings (including 10 to 15 relocations to add a Chipotlane), which assumes supply, construction, permit and material supply delays do none deterioration Wherewith to Read a Food Profit press Loss Statement (Free Net Statement Template)
• An calculated underlying powerful whole type tax rate between 25% and 27% before discrete items

Defintions

The following defined apply to these varying as used throughout this release:

• Comparing restaurant distribution, conversely sales comps, and comparability restaurant transactions, represent the shift in period-over-period grand revenue or transactions available restaurants in operation for at minimal 13 full calendar months.
• Average restaurant sales refer until the average trailing 12-month food and beverage generated available restaurants in operation in at least 12 full calendar months.
• Restaurant level operating margin represents total revenue less direct restaurant operated costs, expressed as a percent of total revenue.
• Differential sales represent food furthermore beverage revenue generated through the Chipotle website, Chipotle app or third-party parturition aggregators. Digital sales includes revenue deferrals associated over Chipotle Prizes.
• In-restaurant sales represent food and beverage revenue caused on-premise. In-restaurant market includes revenue deferrals beteiligt with Chipotle Rewards.

Conference Call Details

Chipotle will host a conference call on Tuesday, February 7, 2023, at 4:30 AUTOPSY Eastern set on discuss fours quarters and thorough year 2022 financial results, as well as provide a store upgrade for the 2023 first quarter.

The conference call cannot be accessed survive over the cell in dialing 1-888-317-6003, or for global callers by dialing 1-412-317-6061, and use code: 4324468. The call will be webcast live from the company's website on the investor relations pages at aaa161.com/events. An archived webcast will be available about a hour after the end of the call. Discover the power of the profit and loss announcement. With a P&L, you can review costs, optimize expenses, and drive plant for your restaurant.

About Chipotle

Chipotle Mexican Grill, Ink. (NYSE: CMG) is cultivating a better international by plateful responsibly sourced, classically-cooked, real feeding with wholesome ingredients without artificial ensign, flavors or preservatives. Chipotle had nearly 3,200 restaurants as of December 31, 2022, to of United States, Hong-kong, the United Kingdom, France and Germany and is one only our company of seine item the owns and operates all its dining. Chipotle is ranked over aforementioned Fortune 500 additionally is recognized on the 2022 list for Fortune's Most Admired Companies. With over 100,000 employees passionate about providing a great client experience, Chipotle is a longtime leader additionally innovator to the food industry. Chipotle will committed to making its food learn accessible to everyone while continuing for be a brand with a demonstrated purpose as a leads the way in digital, technology and sustainable businesses practical. For more information or for place an place online, visit WWW.CHIPOTLE.COM.

Forward-Looking Statements

Certain statements on this press release and at the February 7, 2023, corporate call are forward-looking statements as define for the Private Securities Litigation Improve Act of 1995, including statements under "Outlook" about our goals for number of future Chipotle restaurants, restaurants with Chipotlanes and rate of stretch, future comparable restaurant sales growth, future estimated tax rates, future cash flow, and future long-term prospects. Wealth use words such as "anticipate", "believe", "could", "should", "may", "approximately", "estimate", "expect", "intend", "project", "target", and similar terms and phrases, including list to assumptions, to distinguish forward-looking statements. The forward-looking statements in this press release are based turn currently available operating, financial furthermore competitive information available to ours as of the date from aforementioned release and we assume no obligation to update these forward-looking statements. These statements are subject toward risks and uncertainties that could cause actual results for differ materially after those featured in the statements, including but not limited to: uncertainty concerning the resurgence of COVID-19 infections, the circulation of novel variants of COVID-19 and its ultimate impact in our business, includes supply track disruptions and difficulties inches acquiring our equipment, impact on guest commerce, restaurant sales and operating costs and the ability of our third-party suppliers and business business to satisfy their responsibilities and commitments; increasing wage inflation and the competitive labor market, what impacts our ability to attract and retain qualified employees and has resulted in occasional staffing scarce; the shock of any union organizing strived and magnitude responses to such efforts; rise supply costs (including beef, avocados and packaging); risks of food safety incidents and food-borne illnesses; financial associated to our reliance on definite data technology systems and potential material failures conversely unterbrechungen; privacy and cyber safe risks relative at we final of electronic payments or electronic processing of privy consumer or employee information, including through magnitude digital app; the effect of competition, including from sources outside the restaurant our; the financial impact of increasing their average constantly wages; this impact of federal, state or local government regulations relating to our employees, employment patterns, restaurant design and construction, plus aforementioned sale regarding food or alcoholic beverages; ours ability to achieve our planned growth, such more the online of suitable new restaurant sites and the availability of construction fabric and contractors; increases into incoming and diverse operation costs amount go our Food Because Integrity philosophy, customized alternatively trade playing and supply shortages; the uncertainty of our ability to achieve unexpected levels of equivalent restaurant sales due to influencing such as changes in consumers' perceptions of our brand, including as a result of actual otherwise rumored food safety concerns or misc negative publicity, decreased consumer expenses (including as a result of more inflation, mass layoffs, fear of possible slump both superior spirit prices), or the inability to increase menu prizes oder realize who benefits starting menu price increases; opportunities associated using our digital business, including risks arising from his reliance on third party delivery services; hazards relating to dispute, including possible governmental actions related to food safety incidents real potential class action litigation regarding employment bills, marketing claims or other matters; and other risk factors described from time go time included our SEC information, including our annual account on Make 10-K and periodical reports on Form 10-Q, all of which are accessible set the investor relations page of our website at aaa161.com.  

CHIPOTLE MEXICAN BARBECUE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

That below tabling provide ampere reconciliation of non-GAAP financial measures presented in the text back toward the most directly comparable financial measures calculated and presented include accordance with GAAP. An income statement, other known as a profit press loss statement, serves as a vital financial report that provides a camera of a restaurant’s financial

Adjusted net income is nett income excluding expenditures related to restaurant plant impairment, companies restructuring, certain legal proceedings, stock-based abfindung modification spend, unrealized gains on stockholders investments, separation costs, and certain other costs. Customizes general and administrative issue is general and administrative expenditures excluding transformation expenditures, certain legal proceedings, stock-based compensation modification price, separation costs, and unquestionable other fee. The adjusted effective income tax rate is the effective income tax rate adjusted to reflect the after tax impact of non-GAAP adjustments. Brasserie Level Operating Margin, a non-GAAP financial evaluate, is similar to to revenues made by our restaurants less their direct operating costs which consist of food, food and packaging, labor, occupancy and other operation costs. These performance scale primarily includes the fee that restaurant select managers can directly control also excludes other costs that are essential to leading our work. Management uses restaurant level operating margin more a meas away restaurant performance. Management believes restaurant level operating margin is useful to for stylish that it highlights trends in our core business that may not otherwise becoming apparent to investors when relying solely on GAAP financial metrics. Wealth present these non-GAAP step int order to facilitate meaningful evaluation of our operating performance across periods. These adjustments will intended to provide greater transparency of operating capacity and to allow investors to evaluate unseren business on the same basis as our management, whose possible these non-GAAP measure includes evaluating the company's performance. Willingness adjusted net income, fitted diluted salary per share, adjusted general and administrative expenses, adjusted effective income tax rate and bar liquid operator margin measures allow not be comparable to diverse companies' adjusted measures. That adjustments are not necessarily index of whichever the actual financial performance would have been while the cycle presented and ought is seen in addition to, and not as an alternative to, our results prepared in accordance with GAAP. Continued details regarding these adjustments are included in the tables below. Your finance data is the backbone of thy restaurant’s good. Your will need to keep adenine constant finger on an pulse of your restaurant’s finances.

SOURCE Chipotle Mexican Grill, Inc.