Q1 2014 Earnings Call Transcript

Transcript Call Date 04/17/2014

Last year about a 100,000 people attended Cultivate events in Chicago, Denver and San Francisco, but millions of additional consumers were reached through related advertising, social media and PR. We continue to be encouraged by the reach and response of these events, with more than 90% of attendees saying that they would attend again the next year and would recommend the event to others.

We'll also continue to do more traditional advertising which is designed to keep Chipotle top of mind with our customers. Our new campaign entitled Better Ingredients is currently running in many Chipotle markets around the country. The creative content focuses on our use of great ingredients and classic cooking techniques and includes print, online ads and outdoor.

Finally, we're encouraged by the growth seeds that we have planted including our international expansion ShopHouse and Pizzeria Locale. Since our last call, we recently opened our third restaurant in Paris and we now have 10 restaurants open in Europe, including six in London and one in Frankfurt. I should remind you however, that we review our portfolio of growth seeds as opportunities for long-term growth potential and that our growth will be driven by the development of Chipotle restaurants in the United States for the foreseeable future.

I'll now turn the call over to Mont.

Montgomery F. Moran - Co-CEO: Thanks Steve. I'm really proud of the results our restaurant teams delivered during the first quarter. While many restaurants and retailers have talked about a tough consumer environment, not only because of the weather and the tepid economy, our teams have created such a warm and welcoming environment that our customers visited at an accelerated rate during the quarter. This terrific environment our customers discover when they visit Chipotle is the result of the special people culture our managers are creating in our restaurants.

It's a culture that emerges when you hire only terrific people who believe in and are committed to work Chipotle is headed; who have a desire to learn how to cook delicious food made from high quality ingredients and who thrive in a culture where are empowered to contribute to their absolute fullest potential including becoming the future leaders of Chipotle.

Of course, this is the culture that customers discover when they visit our restaurateur restaurants and every one of our managers throughout the country is intently focused on creating this very same restaurateur culture in their own restaurants.

Today we have more than 500 restaurateurs including over 90 in field leadership positions, but we have more than 1,200 managers who are working hard to become restaurateur soon. In fact every single one of our managers has targeted becoming a restaurateur within the next 12 months most of them sometime during this year. We know this because the plan tool that you've heard me talk about during the past two earnings calls identifies a specific plan of action by which each GM will create a restaurateur culture in their restaurant.

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