-2017- ANNUAL REPORT & PROXY STATEMENT DEAR SHAREHOLDERS $VZHDSSURDFKRXUWKDQQLYHUVDU\ZHGRVRZLWKD Brian is a tremendous talent and shares our passion for UHQHZHGSXUSRVHqWRFXOWLYDWHQRXULVKHGFRPPXQLWLHVZKHUH Chipotle’s purpose. His track record of success is undeniable. ZKROHVRPHIRRGLVHQMR\HGHYHU\GD\qDQGDoUPEHOLHI 7KURXJKRXWKLVFDUHHUoUVWZLWK3URFWHU *DPEOHWKHQ3L]]D WKDWZHFDQIXOoOOWKDWSXUSRVHDQGUHFODLPWKHLQGXVWU\ Hut and Taco Bell, Brian distinguished himself as an innovator leadership that made Chipotle such a compelling brand for our DQGDUHVXOWVRULHQWHGOHDGHUZKRKDVEHHQLQVWUXPHQWDOLQ FXVWRPHUVHPSOR\HHVVXSSO\SDUWQHUVDQGVKDUHKROGHUV UHLQYLJRUDWLQJEUDQGV2XU%RDUGZDVLPSUHVVHGZLWK%ULDQ WKURXJKRXWWKHSURFHVVDQGZHDUHDOOFRQoGHQWWKDWKHLV 5HpHFWLQJRQRXUEXVLQHVV,FRQWLQXHWRWDNHJUHDWSULGHLQ the right leader to help Chipotle reclaim its leadership, and RXUPDQ\DFFRPSOLVKPHQWV,VWDUWHG&KLSRWOHLQZLWK accelerate our return to greater success. WKHQRYHOLGHDWRVKRZWKDWMXVWEHFDXVHIRRGLVVHUYHGIDVW GRHVQ WPHDQLWKDVWREHDW\SLFDOIDVWIRRGH[SHULHQFH, 2XUGHGLFDWLRQWRk)RRGZLWK,QWHJULW\yFODVVLFFRRNLQJDQG EHOLHYHGWKDWZHFRXOGGRWKLVE\VHUYLQJJUHDWWDVWLQJIRRG interactive service are as strong as ever. These commitments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pDYRUEXWRQLVVXHVOLNHDQLPDOZHOIDUH 7KHFKDQJHVZHKDYHPDGHRYHUWKHODVWFRXSOHRI\HDUV DQWLELRWLFXVHVRLOKHDOWKSHVWLFLGHXVHDQGSUHVHUYLQJIDPLO\ EHWWHUSRVLWLRQXVWREXLOGXSRQDOOWKDWZHKDYHDFKLHYHGLQ IDUPV:HFDOOHGWKLVFRPPLWPHQWk)RRGZLWK,QWHJULW\yDQG RXUoUVW\HDUVIRURXUFXVWRPHUVRXUHPSOR\HHVRXUIDUP LWEHFDPHFHQWUDOWRWKHZD\ZHUDQRXUUHVWDXUDQWV&KLSRWOH SDUWQHUVDQGRXUVKDUHKROGHUVDQGJLYHXVJUHDWFRQoGHQFH SURYHG\RXFRXOGFUHDWHDWUHPHQGRXVHFRQRPLFPRGHOZKLOH for our future. EX\LQJUHVSRQVLEO\UDLVHGIRRG 6LQFHUHO\ 7KHVHDUHYHU\VLJQLoFDQWDFFRPSOLVKPHQWVUHVXOWLQJLQWKH FUHDWLRQRIDQHZUHVWDXUDQWFDWHJRU\FDOOHGkIDVWFDVXDOy, ZLOODOZD\VEHSURXGRIWKHPHDQLQJIXOFKDQJH&KLSRWOHKDV FUHDWHGLQWKHLQGXVWU\ 6WHYH(OOV ([HFXWLYH&KDLUPDQ &HUWDLQO\WKHODVWWZR\HDUVKDYHEHHQGLIoFXOWSDUWLFXODUO\ LQOLJKWRIWKHWUDMHFWRU\ZHHQMR\HGIRUWKHoUVW\HDUV %XW,oUPO\EHOLHYHZHKDYHPDGHVLJQLoFDQWDQGPHDQLQJIXO FKDQJHVWRVWUHQJWKHQRXUFRPSDQ\:HLPSOHPHQWHG LQGXVWU\OHDGLQJIRRGVDIHW\SURWRFROVDQGZHDUHFRPPLWWHG WRDOZD\VDGYDQFLQJIRRGVDIHW\:HHQKDQFHGWKHWDOHQWRQ our Board of Directors, strengthened our internal leadership WHDPZLWKWKHDSSRLQWPHQWRIQHZRIoFHUVUHDOLJQHGWKH restaurant operations structure, and embraced innovation to LPSURYHWKHJXHVWH[SHULHQFH%XWRXUPRVWVLJQLoFDQWFKDQJH FDPHZLWKQDPLQJ%ULDQ1LFFRODVRXUQHZ&KLHI([HFXWLYH 2IoFHU:LWK%ULDQLQSODFH,ZLOOUHPDLQZLWK&KLSRWOHDV ([HFXWLYH&KDLUPDQ TO MY FELLOW SHAREHOLDERS ZDVDQHYHQWIXODQGFKDOOHQJLQJ\HDUIRU&KLSRWOH )LQDOO\ZHODXQFKHGDVHDUFKIRUDQHZ&KLHI([HFXWLYH $OWKRXJKZHPDGHVLJQLoFDQWSURJUHVVLQVRPHNH\DUHDV 2IoFHUZKLFKFXOPLQDWHGLQWKHKLULQJRI%ULDQ1LFFROLQHDUO\ LQFOXGLQJLPSURYHPHQWRIFHUWDLQoQDQFLDOPHDVXUHV 7KURXJKRXWWKHSURFHVV%ULDQLPSUHVVHGWKH%RDUG FRQWLQXHGVWUHQJWKHQLQJRIRXUIRRGVDIHW\FXOWXUHDQG ZLWKKLVSDVVLRQIRU&KLSRWOH VSXUSRVHDQGKLVEHOLHILQWKH LPSURYHGUHVWDXUDQWRSHUDWLRQVUHVXOWVIRUWKH\HDUGLG FRPSDQ\ VEUDQGDORQJZLWKKLVH[WUDRUGLQDU\H[SHULHQFHDQG QRWVDWLVI\H[SHFWDWLRQV$VDUHVXOWZHDUHFRQWLQXLQJRXU DFKLHYHPHQWV%ULDQFRPHVWR&KLSRWOHZLWKH[SHULHQFHDW efforts to enhance Chipotle’s performance, including making QRWDEOHJOREDOFRPSDQLHVLQFOXGLQJ3URFWRU *DPEOH3L]]D some important changes to our management team and Hut, and Taco Bell. Throughout his career, Brian has proven Board of Directors. WREHDUHVXOWVRULHQWHGOHDGHUZLWKSDUWLFXODUVWUHQJWKVLQ marketing and brand development, and technological and &KLSRWOH VSURJUHVVLQFDPHLQVXFKNH\DUHDV PHQXLQQRYDWLRQ,NQRZ,VSHDNIRUDOORIRXU'LUHFWRUVLQ as leadership, oversight, and enhanced stakeholder VD\LQJWKDWZHKDYHWKHIXOOHVWFRQoGHQFHLQ%ULDQDQG FRPPXQLFDWLRQV$WWKH$QQXDO6KDUHKROGHUV believe he is the right leader for Chipotle as it approaches its 0HHWLQJZHQRPLQDWHGIRXUUHFHQWO\DSSRLQWHG'LUHFWRUV WKDQQLYHUVDU\ IRUUHHOHFWLRQWRWKH%RDUGZKLOHWKUHHORQJWLPH'LUHFWRUV retired and one resigned to focus on other opportunities. :LWKWKHVHDUFKIRUDQHZ&(2FRPSOHWH6WHYH(OOVKDVWDNHQ ,QWHUQDOO\ZHVDZWKHDGGLWLRQRI&KLSRWOH VoUVWHYHU WKHUROHRI([HFXWLYH&KDLUPDQ2QEHKDOIRIRXU%RDUG, &KLHI5HVWDXUDQW2IoFHU6FRWW%RDWZULJKWDQG&KLHI ZDQWWRWKDQN6WHYHIRUKLVUHPDUNDEOHYLVLRQDQGOHDGHUVKLS &RPPXQLFDWLRQV2IoFHU/DXULH6FKDORZ(DFKRIWKHVH WKURXJKRXW&KLSRWOH VKLVWRU\6WHYHLVDWUXHYLVLRQDU\DQG OHDGHUVEULQJVGHPRQVWUDWHGH[SHUWLVHDQGDSURYHQWUDFN SLRQHHUZKRQRWRQO\OHG&KLSRWOHWRLWVKHLJKWVRIVXFFHVV UHFRUGRIVXFFHVVDWPDMRUJOREDOUHVWDXUDQWEUDQGV$QG EXWKHOSHGWRFUHDWHDQHQWLUHO\QHZFDWHJRU\RIGLQLQJqIDVW ERWKKDYHPDGHVLJQLoFDQWLPSDFWVHDUO\LQWKHLUUHVSHFWLYH FDVXDOqZKLFKKDVEHHQWKHIDVWHVWJURZLQJVHJPHQWRIWKH tenures at Chipotle, strengthening restaurant operations, LQGXVWU\LQUHFHQW\HDUV:HDOOORRNIRUZDUGWRFRQWLQXLQJWR realigning restaurant leadership teams to ensure continued ZRUNZLWK6WHYHDVKHWDNHVRQKLVQHZUROH LPSURYHPHQWDQGDJJUHJDWLQJWKHFRPSDQ\ VYDULRXV LQWHUQDODQGH[WHUQDOFRPPXQLFDWLRQVIXQFWLRQVXQGHUD <RXU%RDUGLVFRPPLWWHGWRPDNLQJRXUFRPSDQ\VWURQJHUDQG single umbrella. enhancing shareholder value. We believe that our efforts to strengthen leadership, oversight, and effective communication ,QDGGLWLRQDVSDUWRIRXURQJRLQJHIIRUWWRVKDUHLPSRUWDQW ZLWKDOORIRXUVWDNHKROGHUVZLOOKHOSXVWRDFKLHYHWKRVHJRDOV LQIRUPDWLRQZLWKVKDUHKROGHUVDQGRWKHU&KLSRWOH DQGVWUHQJWKHQWKHSHUIRUPDQFHRIWKHFRPSDQ\ VWDNHKROGHUVZHSXEOLVKHGRXUoUVWHYHU6XVWDLQDELOLW\ 5HSRUW7KLVUHSRUWZKLFKIROORZV*OREDO5HSRUWLQJ,QLWLDWLYH *5, VWDQGDUGVSURYLGHVWKHPRVWWKRURXJKORRN\HWDW 6LQFHUHO\ VXVWDLQDELOLW\LQLWLDWLYHVUHODWLQJWRRXUVXSSO\FKDLQWKH RSHUDWLRQRIRXUUHVWDXUDQWVVWDIoQJDQGDQXPEHURIRWKHU NH\DUHDV:HKDYHDOZD\VEHHQYHU\SURXGRI&KLSRWOH V OHDGHUVKLSLQPDQ\RIWKHVHDUHDVQRWDEO\RXUFRPPLWPHQW 1HLO)ODQ]UDLFK to more enlightened food sourcing practices and our /HDG,QGHSHQGHQW'LUHFWRU VWURQJFRPPLWPHQWWRUHGXFLQJZDVWHDQGHQYLURQPHQWDO impact. We are pleased to share more information about these important issues. The publication of this report offers DFRPSUHKHQVLYHYLHZRIRXUFRPSDQ\ VSHUIRUPDQFH ZLWKUHJDUGWRVXVWDLQDELOLW\DQGSURYLGHVDURDGPDSIRU SULRULWLHVJRLQJIRUZDUG UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017 or ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-32731 CHIPOTLE MEXICAN GRILL, INC. (Exact name of registrant as specified in its charter) Delaware 84-1219301 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1401 Wynkoop Street, Suite 500 Denver, CO 80202 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code: (303) 595-4000 Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common stock, par value $0.01 per share New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes È No ‘ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ‘ No È Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes È No ‘ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). È Yes ‘ No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. È Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (check one): È Large accelerated filer ‘ Accelerated filer ‘ Non-accelerated filer ‘ Smaller reporting ‘ Emerging growth (do not check if a company company smaller reporting company) If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period