Chipotle Mexican Grill (CMG)

Results for the nine months ended September 30, 2008

Revenue for the nine months ended September 30, 2008 increased 23.8% to $986.6 million from $796.9 million in the prior year period. This growth in revenue was attributable to new restaurants not in the comparable base and a 6.6% increase in comparable restaurant sales. Comparable restaurant sales growth is due to menu price increases associated with the addition of naturally raised meats as well as an increase in customer visits. Chipotle opened 97 new restaurants during the period.

Restaurant level operating margins decreased to 21.7% in the period, versus 22.4% in the nine months ended September 30, 2007, primarily due to an increase in food costs, occupancy and other operating costs which was partially offset by menu price increases associated with the addition of naturally raised meats.

General and administrative expenses were $64.9 million for the nine months ended September 30, 2008, or 6.6% of revenues, compared to $54.4 million, or 6.8% of revenues for the prior year period. General and administrative expenses declined as a percentage of revenue primarily due to lower performance based bonus accruals for 2008.

Income from operations increased to $96.2 million for the nine months ended September 30, 2008, compared to $80.7 million a year ago.

Net income for the nine months ended September 30, 2008 was $61.2 million, or $1.84 per diluted share, compared to $53.0 million, or $1.60 per diluted share in the prior year period.

Results for the six months ended June 30, 2008

Revenue for the six months ended June 30, 2008 increased 26.6% to $646.1 million from $510.4 million in the prior year period. This growth in revenue was attributable to new restaurants not in the comparable base and an 8.5% increase in comparable restaurant sales. Comparable restaurant sales growth was primarily due to an increase in customer visits and menu price increases. Chipotle opened 77 restaurants during the period.

Restaurant level operating margins decreased to 21.9% in the period, versus 22.1% in the six months ended June 30, 2007, primarily due to an increase in food costs and higher credit card processing fees associated with increased credit card usage, partially offset by menu price increases associated with the addition of naturally raised meats.

General and administrative expenses were $42.2 million for the six months ended June 30, 2008, or 6.5% of revenues, compared to $35.1 million, or 6.9% of revenues for the prior year period. General and administrative expenses declined as a percentage of revenue primarily due to the effect of economies of scale from higher restaurant sales and lower performance based bonus accruals for 2008. General and administrative expenses for the first half of 2007 also benefited from the removal of the remaining $1.2 million reserve, or $0.02 per diluted share, associated with credit card transactions.

Income from operations increased to $65.1 million for the six months ended June 30, 2008, compared to $49.3 million a year ago.

Net income for the six months ended June 30, 2008 was $41.8 million, or $1.25 per diluted share, compared to $32.4 million, or $0.98 per diluted share in the prior year period.

“Our comparable sales and bottom line growth in this economic environment reflect the enormous strength of our brand and are a testament to the passion and commitment of our restaurant managers and crew,” said Jack Hartung, Chief Financial Officer. “We continue to expect 130 to 140 new restaurants openings in 2008, and though we face significant economic challenges in the short term, we continue to believe we can grow diluted earnings per share over the long-term at an average annual rate of at least 25%.”