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SEC Filings

10-K
CHIPOTLE MEXICAN GRILL INC filed this Form 10-K on 02/08/2018
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The significant factors contributing to the increase in revenue in 2017 were new restaurant openings and comparable restaurant sales increases. Revenue from restaurants not yet in the comparable restaurant base contributed $338.8 million to the revenue increase, of which $149.1 million was attributable to restaurants opened in 2017, and comparable restaurant sales increased $233.2 million. The increase in comparable restaurant sales was attributable to an increase in average check, including a 1.2% benefit from menu price increases.

In 2016,  the decrease in revenue was attributable to a decline in comparable restaurant sales, which we attribute primarily to the impact of food safety incidents beginning in late 2015, partially offset by new restaurant openings. Comparable restaurant sales decreased $914.7 million while revenue from restaurants not yet in the comparable restaurant base contributed $323.9 million, of which $156.2 million was attributable to restaurants opened in 2016.   

Food, Beverage and Packaging Costs  



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



Year ended December 31,

 

% increase

 

% decrease



2017

 

2016

 

2015

 

2017 over 2016

 

2016 over 2015



(dollars in millions)

 

 

 

 

Food, beverage and packaging

$

1,535.4 

 

$

1,365.6 

 

$

1,503.8 

 

12.4% 

 

(9.2%)

As a percentage of revenue

 

34.3% 

 

 

35.0% 

 

 

33.4% 

 

 

 

 

Food, beverage and packaging costs decreased as a percentage of revenue in 2017 primarily due to the benefit of the menu price increases taken in select restaurants during the second and fourth quarters of 2017. Food, beverage and packaging costs also benefitted from bringing the preparation of lettuce and bell peppers back into our restaurants after using pre-cut produce during portions of 2016, and cost savings initiatives resulting in lower prices and usage of paper and packaging products. These decreases were partially offset by higher avocado prices. We expect food, beverage and packaging costs as a percentage of revenue in 2018 to be lower than 2017 due to the benefit of menu price increases, and our expectations for stable commodity prices.

Food, beverage and packaging costs increased as a percentage of revenue in 2016 primarily due to increased waste and costs related to new food safety procedures as well as higher avocado prices, partially offset by relief in beef prices.  In dollar terms, food, beverage and packaging costs decreased in 2016 due to lower sales. 

Labor Costs  



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



Year ended December 31,

 

% increase

 

% increase



2017

 

2016

 

2015

 

2017 over 2016

 

2016 over 2015



(dollars in millions)

 

 

 

 

Labor costs

$

1,206.0 

 

$

1,105.0 

 

$

1,045.7 

 

9.1% 

 

5.7% 

As a percentage of revenue

 

26.9% 

 

 

28.3% 

 

 

23.2% 

 

 

 

 

Labor costs as a percentage of revenue decreased during the year ended December 31, 2017 due primarily to increased crew efficiency, including the benefit of lower promotional activity during the year, improved manager deployment, and sales leverage, including the impact of menu price increases.  The decrease was partially offset by wage inflation.   We expect labor costs as a percentage of revenue to be higher in 2018 than 2017 due to labor inflation and the enhanced benefits described above under “Overview – Tax Law Changes.”

Labor costs as a percentage of revenue increased in 2016 due primarily to sales deleveraging and wage inflation, partially offset by labor efficiencies resulting from fewer managers and crew in each of our restaurants.  Labor costs increased in dollar terms for the year ended December 31, 2016 due to staffing needs for new restaurants.    

Occupancy Costs  



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



Year ended December 31,

 

% increase

 

% increase



2017

 

2016

 

2015

 

2017 over 2016

 

2016 over 2015



(dollars in millions)

 

 

 

 

Occupancy costs

$

327.1 

 

$

293.6 

 

$

262.4 

 

11.4% 

 

11.9% 

As a percentage of revenue

 

7.3% 

 

 

7.5% 

 

 

5.8% 

 

 

 

 

Occupancy costs as a percentage of revenue decreased in 2017 primarily due to sales leverage on a largely fixed-cost base.

33

 


 

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