This summary is based on the second quarter fiscal 2007 earnings call conducted by Chipotle Mexican Grill Inc. (CMG) on July 31, 2007

Chairman and CEO: Steve Ells
President and COO: Monty Moran
Chief Finance and Development Officer: Jack Hartung
IR: Sandra Curlander

Key Investors Issues

- Net income was up 85.1% to $20 million.
- An additional 32 new restaurants were opened.
- Increased focus on offering naturally raised meat products.

Second Quarter Highlights

Total revenues increased 33.9% to $274.3 million.

- The unit economic model continues to improve with average restaurant volumes now at $1,674,000, for the over 500 restaurants that have been opened for at least 12 months up from $1,545,000 in 2006.
- Despite higher commodity costs exerting pressure on margins, restaurant level margins still improved to 23.2%, the highest quarterly margin yet. Labor efficiencies, menu price increases related to the introduction of naturally raised meats and approved restaurant level controls were the primary drivers for the increase.
- The 11.6% comparable sales was driven by increased customer visits, as menu price increases related to the rollout of naturally raised meat contributed only 2% during the quarter.

The firm is on track to deliver the 110 to 120 openings guided for the year as 32 new restaurants were opened, bringing the year-to-date openings to 60.

- As at end of June, there were 640 company-operated restaurants, including the four remaining franchise restaurants acquired in April.
- Food, beverage and packaging expenses were 31.9% of restaurant sales or 100 basis points higher than last year, due to cost pressures related to the early season freeze in California, and an increased demand for corn, which in turn impacted many raw ingredients, including chicken and beef.
- Labor improved to 25.9% from 27.8% in 2006, due to a disciplined management of labor with the help of a national labor scheduling metrics, economies of scale from higher average restaurant sales and lower insurance costs now.
– The company was able to reduce the credit card accrual down to zero as it experienced almost no claims over the past several months, and any credit cards that may have been compromised, following an alleged breach back in August of 2004 have almost all expired.

Net income increased 85.1% to $20 million from $10.8 million in the prior year, resulting in earnings per share of 60 cents a share from 33 cents a share in 2006.

- Pre-opening costs were $2.6 million from to $1.5 million in 2006, following the doubling of restaurant openings to 32 compared to 14 last year.
- The firm is in the process of installed new security systems in 150 of the restaurants through June with another 270 installations anticipated in the third quarter.
- Cash was $156 million, while net interest income declined compared to last year, due to a greater investment in tax exempt security.
- Income from operations increased 93% to $30.7 million from $15.9 million in 2006.

Recent Innovations:

- Developed and are in the process of implementing a tortilla press which will allow crews to serve hotter, more evenly heated tortillas more quickly and with less effort.
- Completed designs for a new grill allowing crews to enhance grilling of meat and is also easier to clean.
- Designing second make wine to function better and more efficiently.
- Continuing to improve the design and functionality of restaurant buildings.

In April 2007, the firm introduced naturally raised chicken to all 64 Colorado restaurants and more recently to the Dallas, Omaha and Wichita markets.

- In addition to the 100% sour cream, most of the cheese is now sourced from cows that are never given the synthetic growth hormone rBGH.

Enhanced focus on staff development

- From the people''s side, the management belives success has been due to four fundamental principles: identifying talent, developing managers through people development meetings, ensuring high standards and removing obstacles.
- These efforts have seen an improvement in the quality of the food served, and by the great service in the restaurants.
- Through restaurateur interviews, 15 managers have been asked to become restaurateurs, increasing the total to around 60, demonstrating that field teams are now more aware of what it takes to be a successful restaurateur.
– In addition, 60% of the managers continue to be promoted from within as opposed to 40% last year at this time. The turnover rate has also remained below 30% as opposed to 34% in 2006.

Year-to-Date Financial Highlights

- Revenue increased 30.2% to $510.4 million.
- Comparable restaurant sales increased 10%.
- Restaurant level operating margins increased 110 basis points to 22.1%.
- Net income increased 72.6% to $32.4 million.
- EPS rose 66.1% to 98 cents a share.

Fiscal 2007 Outlook