Summary of Chipotle 10k 2023

These are some of the basic notes after reading Chipotle's 10k 2023. This is not detailed analysis but basic info based on the public filing. This focused more on fundamental analysis. 

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• First location opened in Denver in 1993. 
• Owns and operates 3,371 locations in US and 66 international. 
• Has 26 independently owned and operated regional distribution centers. 
• Digital sales 37.4%
• Human Capital:
  • 116,068 worldwide and 1,088 contract workers. 114,042 based in  US, 2,026 in Canada, France, Germany and UK. 
  • In US of 114,022: 112,572 work in restaurants, 1,470 in restaurant support centers. 
  • Peak hiring season is spring and fall. 
  • Advertises in documents style television spots, unscripted testimonials, social media ads and highlight possible six figure salary in about three years. 
  • Employees race: Hispanic: 39.9%, White: 28.7%, Black: 19.8%, Asian 4.7%, Two or more race: 3.3%, Unknown: 2%, Native American: 1.2%, Native Hawaiian: 0.4%
  • In 2023 it has 24,000 internal promotions, including 100% of US based Regional Vice President, 87% Regional Team Directors, 87% Field Leaders. 
  • For training it has multiple programs : Leadership Evolution and Development, Cultivate University, General Manager Upskilling, Executive Development, Online exec coaching, Teach and Taste seminar. 
  • Benefits provides for employees: Debt free degree program, Career Certificates, student loan payment match, 401k retirement programs
• Restaurant operating cost: 78% of total revenue
• Opened 271 new locations, 238 of them had drive thru

• Average restaurant sales: $3 million, menu price increase: 5.2%
• Food and beverage revenue: 9,804.1 Million, Delivery service revenue: 67.5 Million.  
• Food, beverage and packaging expense: 2,912.6 million (29.5% of revenue) 
• Labor expense: 2,441.0 million  (24.7% of revenue)
• Occupancy cost: 503.3 million (5.1% of revenue)
• Other Operating cost: 1,428.7 million (14.5% of revenue) 
• General and Admin Expense: 633.6 million   (6.4%) 

• Seasonality: first quarter and fourth quarter are slow. 
• Has $500 mil undrawn line of credit with JP Morgan Chase.  Interest rate: SOFR + 1.5%. Also 0.175% per year for unused credit line. 

• Commodity price risks: Works with suppliers and uses mix of forward pricing protocols where it agrees with suppliers regarding specific prices. Currently trying to diversify number of suppliers for some products.

- Insurance: Self insured for significant portion of employee’s health benefit programs. Has predetermined loss limits with third part insurance company to limit exposure.  

• Rabbi Trust: Some deferred compensation plan oblations are held in Rabbi Trust. Invested in mutual funds. 
• Other investments: Tractor Beverages Inc (10.2%) and minority investment in Nuro Inc. 

ESPP (employee stock purchase): After one year in chipotle employee may contribute up to 15% of earnings in this plan. Provides stock stock at 92.5% lower than fair market value.