1058090--2/23/2007--CHIPOTLE_MEXICAN_GRILL

related topics

{cost, operation, labor}

{competitive, industry, competition}

{cost, regulation, environmental}

{financial, litigation, operation}

{system, service, information}

{stock, price, operating}

{operation, natural, condition}

{condition, economic, financial}

{property, intellectual, protect}

{provision, law, control}

{loss, insurance, financial}

{acquisition, growth, future}

Cautionary Note Regarding Forward-Looking Statements Increasing our sales and profitability depends substantially on our ability to open new restaurants and is subject to many unpredictable factors. Our sales and profit growth could be adversely affected if comparable restaurant sales are less than we expect. Our failure to manage our growth effectively could harm our business and operating results. New restaurants, once opened, may not be profitable, and the increases in average restaurant sales and comparable restaurant sales that we have experienced in the past may not be indicative of future results. Our expansion into new markets may present increased risks due to our unfamiliarity with those areas. Changes in food and supply costs could adversely affect our results of operations. Additional instances of e. coli, avian flu, mad cow disease or other food-borne illnesses could adversely affect the price and availability of the meat or produce we use to prepare our food, cause the temporary closure of some restaurants and result in negative publicity, thereby resulting in a decline in our sales. We may face difficulties transitioning services McDonald s provided to us and entering into new or modified arrangements with existing or new suppliers or service providers. Our insurance coverage and self-insurance reserves may not cover future claims. We may not persuade customers of the benefits of paying our prices for higher-quality food. Changes in customer tastes and preferences, spending patterns and demographic trends could cause sales to decline. Competition from other restaurant companies could adversely affect us. We may have experienced a security breach with respect to certain customer credit and debit card data, and we have incurred and may continue to incur substantial costs as a result of this matter. We may also incur costs resulting from other security risks we may face in connection with our electronic processing and transmission of confidential customer information. Failure to receive frequent deliveries of higher-quality food ingredients and other supplies could harm our operations. Our business could be adversely affected by increased labor costs or difficulties in finding the right employees for our restaurants. Governmental regulation may adversely affect our ability to open new restaurants or otherwise adversely affect our existing and future operations and results. We may not be able to adequately protect our intellectual property, which could harm the value of our brands and adversely affect our business. Our quarterly operating results may fluctuate significantly and could fall below the expectations of securities analysts and investors due to various factors. Restrictions and indemnities in connection with the tax treatment of McDonald s exchange offer could adversely affect us. Our anti-takeover provisions may delay or prevent a change in control of us, which could adversely affect the price of our common stock.

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1058090--2/23/2007--CHIPOTLE_MEXICAN_GRILL_INC