This excerpt taken from the CMG 8-K filed Mar 13, 2006.
Full Year 2005 Financial Results
Revenues increased 33.3% to $627.7 million from $470.7 million in 2004. The growth in revenues is primarily attributable to a 10.2% increase in comparable restaurant sales and an increase in revenues from restaurants not yet in the comparable base. The 10.2% comparable restaurant sales increase was primarily the result of increased transactions. The Company opened 80 company-owned restaurants in 2005, representing a 20% increase in Chipotles 2004 ending restaurant base.
Higher average restaurant sales in 2005 contributed to an increase in operating margins to 18.5% in 2005 from 16.3% in 2004. Also contributing to this increase was a decline in certain commodity costs,
menu price increases related to the addition of naturally raised chicken and naturally raised beef in certain markets, and improved employee efficiency.
General and administrative expenses were $52.0 million in 2005, or 8.3% of revenues, compared to $44.8 million in 2004, or 9.5% of revenues. General and administrative expenses as a percentage of revenues decreased primarily due to the effect of higher sales.
Operating income increased to $31.0 million in 2005, compared to operating income of $6.1 million in 2004.
Net income for 2005 was $37.7 million compared to $6.1 million in 2004. The comparability between periods was affected by the 2005 reversal of the Companys tax valuation allowance attributable to the companys net operating loss carry forwards. The reversal resulted in a one-time, non cash income tax benefit of $20.3 million.
Full year 2005 was a successful year for Chipotle by virtually any measure, commented Jack Hartung, Chief Financial and Development Officer. New restaurants opened at increasingly higher volumes with comparable restaurant sales surpassing 10% for the eighth consecutive year. In addition, our restaurant-level margins continued to improve over 2004. For the remainder of 2006, well look to maintain our momentum with existing restaurants and continue to pursue great restaurant locations in both new and existing markets.