Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 24, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-32731 | |
Entity Registrant Name | CHIPOTLE MEXICAN GRILL, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-1219301 | |
Entity Address, Address Line One | 610 Newport Center Drive | |
Entity Address, Address Line Two | Suite 1100 | |
Entity Address, City or Town | Newport Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92660 | |
City Area Code | 949 | |
Local Phone Number | 524-4000 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CMG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,444,660 | |
Entity Central Index Key | 0001058090 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 602,307 | $ 384,000 |
Accounts receivable, net | 71,122 | 106,880 |
Inventory | 40,177 | 35,668 |
Prepaid expenses and other current assets | 104,038 | 86,412 |
Income tax receivable | 0 | 47,741 |
Investments | 851,699 | 515,136 |
Total current assets | 1,669,343 | 1,175,837 |
Leasehold improvements, property and equipment, net | 2,093,011 | 1,951,147 |
Long-term investments | 473,247 | 388,055 |
Restricted cash | 25,315 | 24,966 |
Operating lease assets | 3,555,808 | 3,302,402 |
Other assets | 72,830 | 63,158 |
Goodwill | 21,939 | 21,939 |
Total assets | 7,911,493 | 6,927,504 |
Current liabilities: | ||
Accounts payable | 207,541 | 184,566 |
Accrued payroll and benefits | 155,015 | 170,456 |
Accrued liabilities | 151,148 | 147,539 |
Unearned revenue | 156,320 | 183,071 |
Current operating lease liabilities | 244,994 | 236,248 |
Income tax payable | 172,689 | 0 |
Total current liabilities | 1,087,707 | 921,880 |
Commitments and contingencies (Note 11) | ||
Long-term operating lease liabilities | 3,773,087 | 3,495,162 |
Deferred income tax liabilities | 111,089 | 98,623 |
Other liabilities | 53,296 | 43,816 |
Total liabilities | 5,025,179 | 4,559,481 |
Shareholders' equity: | ||
Preferred stock, $0.01 par value, 600,000 shares authorized, no shares issued as of September 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock, $0.01 par value, 230,000 shares authorized, 37,467 and 37,320 shares issued as of September 30, 2023 and December 31, 2022, respectively | 375 | 373 |
Additional paid-in capital | 1,917,868 | 1,829,304 |
Treasury stock, at cost, 9,982 and 9,693 common shares as of September 30, 2023 and December 31, 2022, respectively | (4,798,748) | (4,282,014) |
Accumulated other comprehensive loss | (8,080) | (7,888) |
Retained earnings | 5,774,899 | 4,828,248 |
Total shareholders' equity | 2,886,314 | 2,368,023 |
Total liabilities and shareholders' equity | $ 7,911,493 | $ 6,927,504 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 600,000,000 | 600,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 230,000,000 | 230,000,000 |
Common stock, shares issued | 37,467,000 | 37,320,000 |
Treasury stock, shares at cost | 9,982,000 | 9,693,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Total revenue | $ 2,471,948 | $ 2,220,175 | $ 7,355,329 | $ 6,454,053 |
Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||
Food, beverage and packaging | 734,186 | 662,540 | 2,165,409 | 1,963,394 |
Labor | 616,282 | 557,178 | 1,811,754 | 1,639,044 |
Occupancy | 126,269 | 115,826 | 372,097 | 341,777 |
Other operating costs | 345,368 | 322,085 | 1,058,281 | 970,261 |
General and administrative expenses | 159,501 | 140,896 | 464,337 | 429,118 |
Depreciation and amortization | 78,546 | 71,416 | 233,902 | 212,814 |
Pre-opening costs | 9,605 | 7,618 | 23,341 | 18,219 |
Impairment, closure costs, and asset disposals | 7,241 | 6,363 | 31,842 | 15,354 |
Total operating expenses | 2,076,998 | 1,883,922 | 6,160,963 | 5,589,981 |
Income from operations | 394,950 | 336,253 | 1,194,366 | 864,072 |
Interest and other income, net | 18,392 | 3,712 | 43,787 | 14,071 |
Income before income taxes | 413,342 | 339,965 | 1,238,153 | 878,143 |
Provision for income taxes | (100,125) | (82,827) | (291,502) | (202,769) |
Net income | $ 313,217 | $ 257,138 | $ 946,651 | $ 675,374 |
Earnings per share: | ||||
Basic | $ 11.37 | $ 9.26 | $ 34.31 | $ 24.20 |
Diluted | $ 11.32 | $ 9.20 | $ 34.13 | $ 24.02 |
Weighted-average common shares outstanding: | ||||
Basic | 27,550 | 27,773 | 27,593 | 27,907 |
Diluted | 27,681 | 27,956 | 27,739 | 28,116 |
Other comprehensive income/(loss), net of income taxes: | ||||
Foreign currency translation adjustments | $ (1,128) | $ (2,257) | $ (192) | $ (3,542) |
Comprehensive income | 312,089 | 254,881 | 946,459 | 671,832 |
Food and Beverage [Member] | ||||
Total revenue | 2,456,039 | 2,202,336 | 7,304,557 | 6,394,094 |
Delivery Service [Member] | ||||
Total revenue | $ 15,909 | $ 17,839 | $ 50,772 | $ 59,959 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2021 | $ 371 | $ 1,729,312 | $ (3,356,102) | $ 3,929,147 | $ (5,354) | $ 2,297,374 |
Balance, Shares at Dec. 31, 2021 | 37,132 | 9,052 | ||||
Stock-based compensation | $ 0 | 24,077 | $ 0 | 0 | 0 | 24,077 |
Stock-based compensation, Shares | 0 | 0 | ||||
Stock plan transactions and other | $ 2 | (61) | $ 0 | 0 | 0 | (59) |
Stock plan transactions and other, Shares | 134 | 0 | ||||
Acquisition of treasury stock | $ 0 | 0 | $ (345,921) | 0 | 0 | (345,921) |
Acquisition of treasury stock, Shares | 0 | 230 | ||||
Net income | $ 0 | 0 | $ 0 | 158,294 | 0 | 158,294 |
Other comprehensive income (loss), net of income tax | 0 | 0 | 0 | 0 | 195 | 195 |
Balance at Mar. 31, 2022 | $ 373 | 1,753,328 | $ (3,702,023) | 4,087,441 | (5,159) | 2,133,960 |
Balance, Shares at Mar. 31, 2022 | 37,266 | 9,282 | ||||
Balance at Dec. 31, 2021 | $ 371 | 1,729,312 | $ (3,356,102) | 3,929,147 | (5,354) | 2,297,374 |
Balance, Shares at Dec. 31, 2021 | 37,132 | 9,052 | ||||
Net income | 675,374 | |||||
Balance at Sep. 30, 2022 | $ 373 | 1,807,938 | $ (4,076,555) | 4,604,521 | (8,896) | 2,327,381 |
Balance, Shares at Sep. 30, 2022 | 37,306 | 9,555 | ||||
Balance at Mar. 31, 2022 | $ 373 | 1,753,328 | $ (3,702,023) | 4,087,441 | (5,159) | 2,133,960 |
Balance, Shares at Mar. 31, 2022 | 37,266 | 9,282 | ||||
Stock-based compensation | $ 0 | 29,142 | $ 0 | 0 | 0 | 29,142 |
Stock-based compensation, Shares | 0 | 0 | ||||
Stock plan transactions and other | $ 0 | (167) | $ 0 | 0 | 0 | (167) |
Stock plan transactions and other, Shares | 18 | 0 | ||||
Acquisition of treasury stock | $ 0 | 0 | $ (267,198) | 0 | 0 | (267,198) |
Acquisition of treasury stock, Shares | 0 | 198 | ||||
Net income | $ 0 | 0 | $ 0 | 259,942 | 0 | 259,942 |
Other comprehensive income (loss), net of income tax | 0 | 0 | 0 | 0 | (1,480) | (1,480) |
Balance at Jun. 30, 2022 | $ 373 | 1,782,303 | $ (3,969,221) | 4,347,383 | (6,639) | 2,154,199 |
Balance, Shares at Jun. 30, 2022 | 37,284 | 9,480 | ||||
Stock-based compensation | 25,587 | 25,587 | ||||
Stock plan transactions and other | 48 | 48 | ||||
Stock plan transactions and other, Shares | 22 | |||||
Acquisition of treasury stock | $ (107,334) | (107,334) | ||||
Acquisition of treasury stock, Shares | 75 | |||||
Net income | 257,138 | 257,138 | ||||
Other comprehensive income (loss), net of income tax | (2,257) | (2,257) | ||||
Balance at Sep. 30, 2022 | $ 373 | 1,807,938 | $ (4,076,555) | 4,604,521 | (8,896) | 2,327,381 |
Balance, Shares at Sep. 30, 2022 | 37,306 | 9,555 | ||||
Balance at Dec. 31, 2022 | $ 373 | 1,829,304 | $ (4,282,014) | 4,828,248 | (7,888) | 2,368,023 |
Balance, Shares at Dec. 31, 2022 | 37,320 | 9,693 | ||||
Stock-based compensation | $ 0 | 20,670 | $ 0 | 0 | 0 | 20,670 |
Stock-based compensation, Shares | 0 | 0 | ||||
Stock plan transactions and other | $ 1 | (291) | $ 0 | 0 | 0 | (290) |
Stock plan transactions and other, Shares | 99 | 0 | ||||
Acquisition of treasury stock | $ 0 | 0 | $ (198,819) | 0 | 0 | (198,819) |
Acquisition of treasury stock, Shares | 0 | 125 | ||||
Net income | $ 0 | 0 | $ 0 | 291,644 | 0 | 291,644 |
Other comprehensive income (loss), net of income tax | 0 | 0 | 0 | 0 | 457 | 457 |
Balance at Mar. 31, 2023 | $ 374 | 1,849,683 | $ (4,480,833) | 5,119,892 | (7,431) | 2,481,685 |
Balance, Shares at Mar. 31, 2023 | 37,419 | 9,818 | ||||
Balance at Dec. 31, 2022 | $ 373 | 1,829,304 | $ (4,282,014) | 4,828,248 | (7,888) | 2,368,023 |
Balance, Shares at Dec. 31, 2022 | 37,320 | 9,693 | ||||
Net income | 946,651 | |||||
Balance at Sep. 30, 2023 | $ 375 | 1,917,868 | $ (4,798,748) | 5,774,899 | (8,080) | 2,886,314 |
Balance, Shares at Sep. 30, 2023 | 37,467 | 9,982 | ||||
Balance at Mar. 31, 2023 | $ 374 | 1,849,683 | $ (4,480,833) | 5,119,892 | (7,431) | 2,481,685 |
Balance, Shares at Mar. 31, 2023 | 37,419 | 9,818 | ||||
Stock-based compensation | $ 0 | 31,467 | $ 0 | 0 | 0 | 31,467 |
Stock-based compensation, Shares | 0 | 0 | ||||
Stock plan transactions and other | $ 1 | (217) | $ 0 | 0 | 0 | (216) |
Stock plan transactions and other, Shares | 40 | 0 | ||||
Acquisition of treasury stock | $ 0 | 0 | $ (88,319) | 0 | 0 | (88,319) |
Acquisition of treasury stock, Shares | 0 | 45 | ||||
Net income | $ 0 | 0 | $ 0 | 341,790 | 0 | 341,790 |
Other comprehensive income (loss), net of income tax | 0 | 0 | 0 | 0 | 479 | 479 |
Balance at Jun. 30, 2023 | $ 375 | 1,880,933 | $ (4,569,152) | 5,461,682 | (6,952) | 2,766,886 |
Balance, Shares at Jun. 30, 2023 | 37,459 | 9,863 | ||||
Stock-based compensation | 36,614 | 36,614 | ||||
Stock plan transactions and other | 321 | 321 | ||||
Stock plan transactions and other, Shares | 8 | |||||
Acquisition of treasury stock | $ (229,596) | (229,596) | ||||
Acquisition of treasury stock, Shares | 119 | |||||
Net income | 313,217 | 313,217 | ||||
Other comprehensive income (loss), net of income tax | (1,128) | (1,128) | ||||
Balance at Sep. 30, 2023 | $ 375 | $ 1,917,868 | $ (4,798,748) | $ 5,774,899 | $ (8,080) | $ 2,886,314 |
Balance, Shares at Sep. 30, 2023 | 37,467 | 9,982 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||
Net income | $ 946,651 | $ 675,374 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 233,902 | 212,814 |
Deferred income tax provision | 12,465 | (8,567) |
Impairment, closure costs, and asset disposals | 30,536 | 15,127 |
Provision for credit losses | 565 | (969) |
Stock-based compensation expense | 86,557 | 77,371 |
Other | (17,272) | (13,045) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 33,666 | 22,891 |
Inventory | (4,508) | (1,056) |
Prepaid expenses and other current assets | (23,494) | (3,169) |
Operating lease assets | 185,056 | 171,464 |
Other assets | (6,939) | (1,537) |
Accounts payable | 4,886 | 10,774 |
Accrued payroll and benefits | (14,902) | (32,861) |
Accrued liabilities | 1,882 | (16,562) |
Unearned revenue | (21,190) | (18,141) |
Income tax payable/receivable | 220,427 | (18,070) |
Operating lease liabilities | (156,180) | (153,200) |
Other long-term liabilities | 5,910 | 2,968 |
Net cash provided by operating activities | 1,518,018 | 921,606 |
Investing activities | ||
Purchases of leasehold improvements, property and equipment | (388,801) | (335,518) |
Purchases of investments | (845,981) | (513,813) |
Maturities of investments | 440,788 | 202,997 |
Net cash used in investing activities | (793,994) | (646,334) |
Financing activities | ||
Acquisition of treasury stock | (437,305) | (629,775) |
Tax withholding on stock-based compensation awards | (68,613) | (92,374) |
Other financing activities | 546 | (586) |
Net cash used in financing activities | (505,372) | (722,735) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 4 | (1,170) |
Net change in cash, cash equivalents, and restricted cash | 218,656 | (448,633) |
Cash, cash equivalents, and restricted cash at beginning of period | 408,966 | 846,230 |
Cash, cash equivalents, and restricted cash at end of period | 627,622 | 397,597 |
Supplemental disclosures of cash flow information | ||
Income taxes paid | 54,615 | 227,452 |
Purchases of leasehold improvements, property and equipment accrued in accounts payable and accrued liabilities | 81,724 | 58,127 |
Acquisition of treasury stock accrued in accounts payable and accrued liabilities | $ 15,312 | $ 5,999 |
Basis of Presentation and Updat
Basis of Presentation and Update to Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation and Update to Accounting Policies [Abstract] | |
Basis of Presentation and Update to Accounting Policies | 1. Basis of Presentation and Update to Accounting Policies In this quarterly report on Form 10-Q, Chipotle Mexican Grill, Inc., a Delaware corporation, together with its subsidiaries, is collectively referred to as “Chipotle,” “we,” “us,” or “our.” We develop and operate restaurants that serve a relevant menu of burritos, burrito bowls, quesadillas, tacos, and salads, made using fresh, high-quality ingredients. As of September 30, 2023, we operated 3,321 restaurants including 3,260 Chipotle restaurants within the United States and 61 international Chipotle restaurants. In the current quarter we closed all non-Chipotle restaurants. We manage our U.S. operations based on eight regions and have aggregated our operations to one reportable segment. We have prepared the accompanying unaudited condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by U.S. generally accepted accounting principles for annual reports. This quarterly report should be read in conjunction with the consolidated financial statements, footnotes and management’s discussion and analysis included in our annual report on Form 10-K for the year ended December 31, 2022. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2023 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burden related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and generally can be applied to applicable contract modifications through December 31, 2024. We do not expect the transition from LIBOR to alternative reference rates to have a significant impact to our consolidated financial statements. We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the condensed consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Rec ognition Gift Cards We sell gift cards, which do not have expiration dates, and we do not deduct non-usage fees from outstanding gift card balances. Gift card balances are initially recorded as unearned revenue. We recognize revenue from gift cards when the gift card is redeemed by the customer. Historically, the majority of gift cards are redeemed within one year . In addition, a portion of gift cards are not expected to be redeemed and will be recognized as breakage over time in proportion to gift card redemptions (“gift card breakage rate”). The gift card breakage rate is based on company and program specific information, including historical redemption patterns, and expected remittance to government agencies under unclaimed property laws, if applicable. We evaluate our gift card breakage rate estimate annually, or more frequently as circumstances warrant, and apply that rate to gift card redemptions. Gift card liability balances are typically highest at the end of each calendar year following increased gift card sales during the holiday season; accordingly, revenue recognized from gift card liability balances is highest in the first quarter of each calendar year. The gift card liability included in unearned revenue on the condensed consolidated balance sheets was as follows: September 30, December 31, 2023 2022 Gift card liability $ 115,244 $ 145,014 Revenue recognized from the redemption of gift cards that was included in unearned revenue at the beginning of the year was as follows: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Revenue recognized from gift card liability balance at the beginning of the year $ 6,481 $ 6,311 $ 56,402 $ 54,780 Chipotle Rewards We have a loyalty program called Chipotle Rewards. Eligible customers who enroll in the program generally earn points for every dollar spent. We may also periodically offer promotions, which typically provide the customer with the opportunity to earn bonus points or other rewards. Customers may redeem earned points for various rewards, which are primarily comprised of free food and beverage items. Earned rewards generally expire one month to two months after they are issued, and points generally expire if an account is inactive for a period of six months . We defer revenue associated with the estimated selling price of points or rewards earned by customers as each point or reward is earned, net of points or rewards we do not expect to be redeemed. The estimated selling price of each point or reward earned is based on the estimated value of the product for which the reward is expected to be redeemed. Our estimate of points and rewards we expect to be redeemed is based on historical and other company specific data. The costs associated with rewards redeemed are primarily included in food, beverage, and packaging on our condensed consolidated statements of income and comprehensive income. We evaluate Chipotle Rewards point breakage annually, or more frequently as circumstances warrant. We recognize revenue associated with Chipotle Rewards within food and beverage revenue on the condensed consolidated statements of income and comprehensive income when a customer redeems an earned reward. Deferred revenue associated with Chipotle Rewards is included in unearned revenue on our condensed consolidated balance sheets. Changes in our Chipotle Rewards liability included in unearned revenue on the condensed consolidated balance sheets were as follows: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Chipotle Rewards liability, beginning balance $ 40,923 $ 29,381 $ 38,057 $ 25,572 Revenue deferred 32,947 32,621 95,672 92,495 Revenue recognized ( 32,794 ) ( 30,191 ) ( 92,653 ) ( 86,256 ) Chipotle Rewards liability, ending balance $ 41,076 $ 31,811 $ 41,076 $ 31,811 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments Assets and Liabilities Measured at Fair Value on a Recurring Basis The carrying value of our cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value because of their short-term nature. Our held-to-maturity investments are comprised of U.S. Treasury securities and a corporate debt security, which are held at amortized cost. We also have investments in convertible notes receivable which are held at fair value. Additionally, we maintain a deferred compensation plan with related assets held in a rabbi trust. The following tables show our cash, cash equivalents, and debt investments by significant investment category as of September 30, 2023 and December 31, 2022: September 30, 2023 Adjusted cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Investments Long-term Investments Cash $ 86,629 $ - $ - $ 86,629 $ 86,629 $ - $ - Level 1 (1) Money market funds 439,176 - - 439,176 439,176 - - Time deposits 76,502 - - 76,502 76,502 - - U.S. Treasury securities 1,259,791 520 8,512 1,251,799 - 850,900 408,891 Subtotal 1,775,469 520 8,512 1,767,477 515,678 850,900 408,891 Level 3 Corporate debt security (2) 17,600 - 118 17,482 - 799 16,801 Notes receivable (3) 6,860 284 - 7,144 - - 7,144 Subtotal 24,460 284 118 24,626 - 799 23,945 Total $ 1,886,558 $ 804 $ 8,630 $ 1,878,732 $ 602,307 $ 851,699 $ 432,836 December 31, 2022 Adjusted cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Investments Long-term Investments Cash $ 75,829 $ - $ - $ 75,829 $ 75,829 $ - $ - Level 1 (1) Money market funds 232,477 - - 232,477 232,477 - - Time deposits 75,694 - - 75,694 75,694 - - U.S. Treasury securities 847,354 63 14,355 833,062 - 515,136 332,218 Subtotal 1,155,525 63 14,355 1,141,233 308,171 515,136 332,218 Level 3 Corporate debt security (2) 17,900 - 700 17,200 - - 17,900 Note receivable (3) 4,860 222 - 5,082 - - 5,082 Subtotal 22,760 222 700 22,282 - - 22,982 Total $ 1,254,114 $ 285 $ 15,055 $ 1,239,344 $ 384,000 $ 515,136 $ 355,200 (1) Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. (2) The fair value of the corporate debt security is measured using Level 3 (unobservable) inputs. We determined the fair value for the corporate debt security using an internally-developed valuation model and unobservable inputs include credit and liquidity spreads and effective maturity. (3) We have elected to measure our investment in convertible notes receivable of private companies at fair value under the fair value option. The fair value of the notes receivable are measured using Level 3 (unobservable) inputs. We determined the fair value for the notes receivable using an internally-developed valuation model and unobservable inputs include estimates of the equity value of the underlying business and the timing and probability of future financing events. Rabbi Trust We have elected to fund certain deferred compensation plan obligations through a rabbi trust, the assets of which are designated as trading securities. The rabbi trust is subject to creditor claims in the event of insolvency, but the assets held in the rabbi trust are not available for general corporate purposes. Amounts in the rabbi trust are invested in mutual funds, consistent with the investment choices selected by participants in their Deferred Plan accounts, which are designated as trading securities, carried at fair value and are included in other assets on the condensed consolidated balance sheets. We record trading gains and losses, along with the offsetting amount related to the increase or decrease in deferred compensation to reflect our exposure to liabilities for payment under the deferred plan in general and administrative expenses on the condensed consolidated statements of income and comprehensive income. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value on the condensed consolidated financial statements on a nonrecurring basis include items such as leasehold improvements, property and equipment, certain long-term investments, operating lease assets, other assets, and goodwill. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if there has been an observable price change of a non-marketable equity security. The following table summarizes our restaurant and office assets measured at fair value by hierarchy level on a nonrecurring basis: Carrying Value September 30, Level 2023 2022 Leasehold improvements, property and equipment, net 3 $ 2,033 $ 194 Operating lease assets 3 4,321 551 Total $ 6,354 $ 745 Fair value of these assets was measured using Level 3 inputs (unobservable inputs for the asset or liability). Unobservable inputs include the discount rate, projected restaurant revenues and expenses, and sublease income if we are closing and intend to sublease the restaurant or office space. During the three months ended September 30, 2023 and 2022, we recorded asset impairments related to restaurants and offices of $ 1,611 and $ 698 , respectively. During the nine months ended September 30, 2023 and 2022, we recorded asset impairments related to restaurants and offices of $ 10,726 and $ 1,796 , respectively. Costs are recorded within impairment, closure costs, and asset disposals on the condensed consolidated statements of income and comprehensive income. Carrying value after the impairment charges approximates fair value. |
Equity Investments
Equity Investments | 9 Months Ended |
Sep. 30, 2023 | |
Equity Investments [Abstract] | |
Equity Investments | 5. Equity Investments September 30, December 31, 2023 2022 Equity method investments $ 9,717 $ 11,697 Other investments 40,411 32,855 Total $ 50,128 $ 44,552 Equity Method Investments As of September 30, 2023, we owned 4,325 shares of common stock of Tractor Beverages, Inc. (“Tractor”). Our investment represents ownership of approximately 10.2 % of Tractor, and we have invested total cash consideration of $ 10,000 . As we are a significant customer of Tractor and maintain board representation, we are accounting for our investment under the equity method. There were no impairment charges for the nine months ended September 30, 2023 or 2022 associated with this equity method investment. The investment in common stock is included within other assets on the condensed consolidated balance sheets with a carrying value of $ 9,717 and $ 11,697 as of September 30, 2023 and December 31, 2022, respectively. Refer to Note 13. “Related Party Transactions” for related party disclosures. Other Investments As of September 30, 2023, we hold warrants (the “Tractor Warrants”) to purchase 3,772 shares of common stock of Tractor. Tractor is a privately held company, and as such, the Tractor Warrants represent non-marketable equity securities. The investment is included within long-term investments on the condensed consolidated balance sheets with a carrying value of $ 10,747 as of September 30, 2023 and December 31, 2022. As of September 30, 2023, we own 766 shares of the Series C Preferred Stock of Nuro, Inc. (“Nuro”). Our investment represents a minority interest and we have determined that we do not have significant influence over Nuro. Nuro is a privately held company, and as such, the preferred shares comprising our investment are illiquid and fair value is not readily determinable. As of September 30, 2023, we have recognized a cumulative gain of $ 5,968 related to our investment in Nuro due to observable transactions in prior periods. The investment is included within long-term investments on the condensed consolidated balance sheets with a carrying value of $ 15,968 as of September 30, 2023 and December 31, 2022. As of September 30, 2023, we held additional investments in other entities through the Cultivate Next Fund. These additional investments are included within long-term investments on the condensed consolidated balance sheets with a carrying value of $ 13,696 and $ 6,140 as of September 30, 2023 and December 31, 2022, respectively. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Shareholders’ Equity [Abstract] | |
Shareholders' Equity | 6. Shareholders’ Equity We have had a stock repurchase program in place since 2008. As of September 30, 2023, we had $ 368,369 authorized for repurchasing shares of our common stock, which includes $ 300,000 additional authorization approved by our Board of Directors on September 13, 2023. Shares we repurchased are being held in treasury stock until they are reissued or retired at the discretion of our Board of Directors. During the nine months ended September 30, 2023, 41 shares of common stock at a total cost of $ 68,613 were netted and surrendered as payment for minimum statutory withholding obligations in connection with the vesting of outstanding stock awards. Shares surrendered by the participants in accordance with the applicable award agreements and plan are deemed repurchased by us but are not part of publicly announced share repurchase programs . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation For the nine months ended September 30, 2023, we granted stock only stock appreciation rights (“SOSARs”) on 72 shares of our common stock to eligible employees. The weighted-average grant date fair value of the SOSARs was $ 521.66 per share with a weighted-average exercise price of $ 1,615.39 per share. The SOSARs vest in two equal installments on the second and third anniversary of the grant date. For the nine months ended September 30, 2023, 94 SOSARs were exercised, and 18 SOSARs were forfeited. For the nine months ended September 30, 2023 , we granted restricted stock units (“RSUs”) on 35 shares of our common stock to eligible employees. The weighted-average grant date fair value of the RSUs was $ 1,647.04 per share. The RSUs generally vest in two equal installments on the second and third anniversary of the grant date. For the nine months ended September 30, 2023, 22 RSUs vested and 8 RSUs were forfeited. For the nine months ended September 30, 2023, we awarded performance share units (“PSUs”) on 24 shares of our common stock at target performance to eligible employees. These PSUs are subject to service, market and performance vesting conditions. The weighted-average grant date fair value of the PSUs was $ 1,606.91 per share, and the quantity of shares that will vest range from 0 % to 300 % of the targeted number of shares. If the defined minimum targets are not met, then no shares will vest. Further, in no event may more than 100 % of the target number of PSUs vest if our 3 -year total shareholder return is below the 25 th percentile of the constituent companies comprising the S&P 500 on the day of grant. For the nine months ended September 30, 2023, 49 PSUs vested, and 3 PSUs were forfeited. The following table sets forth total stock-based compensation expense: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Stock-based compensation $ 36,614 $ 25,587 $ 88,751 $ 78,806 Stock-based compensation, net of income taxes $ 31,065 $ 22,067 $ 74,966 $ 67,541 Total capitalized stock-based compensation included in leasehold improvements, property and equipment, net on the condensed consolidated balance sheets $ 813 $ 437 $ 2,194 $ 1,435 Excess tax benefit on stock-based compensation recognized in Provision for income taxes on the condensed consolidated statements of income and comprehensive income $ 994 $ 3,711 $ 23,004 $ 24,383 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | 8. Income Taxes The effective income tax rate for the three months ended September 30, 2023, was 24.2 %, a decrease from an effective income tax rate of 24.4 % for the three months ended September 30, 2022. The decrease is primarily due to a decrease in uncertain tax position reserves and higher income tax credits, mostly offset by a decrease in tax benefits from option exercises and equity vesting. The effective income tax rate for the nine months ended September 30, 2023, was 23.5 %, an increase from an effective income tax rate of 23.1 % for the nine months ended September 30, 2022. The increase is primarily due to fewer tax benefits related to option exercises and equity vesting, partially offset by higher income tax credits . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | 9. Leases The majority of our operating leases consist of restaurant locations and office space. We determine if a contract contains a lease at inception. Our leases generally have remaining terms of 1 - 20 years and most include options to extend the leases for additional 5 -year periods. Generally, the lease term is the minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods up to a term of 20 years. Supplemental disclosures of cash flow information related to leases were as follows: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Cash paid for operating lease liabilities $ 105,416 $ 97,627 $ 312,214 $ 287,048 Operating lease assets obtained in exchange for operating lease liabilities $ 185,519 $ 163,916 $ 438,510 $ 373,971 Derecognition of operating lease assets due to terminations or impairment $ 1,232 $ 6,112 $ 6,391 $ 12,585 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share The following table sets forth the computations of basic and diluted earnings per share: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Net income $ 313,217 $ 257,138 $ 946,651 $ 675,374 Shares: Weighted-average number of common shares outstanding (for basic calculation) 27,550 27,773 27,593 27,907 Dilutive stock awards 131 183 146 209 Weighted-average number of common shares outstanding (for diluted calculation) 27,681 27,956 27,739 28,116 Basic earnings per share $ 11.37 $ 9.26 $ 34.31 $ 24.20 Diluted earnings per share $ 11.32 $ 9.20 $ 34.13 $ 24.02 The following stock awards were excluded from the calculation of diluted earnings per share: Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Stock awards subject to performance conditions 56 61 54 60 Stock awards that were antidilutive 61 167 93 164 Total stock awards excluded from diluted earnings per share 117 228 147 224 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Purchase Obligations We enter into various purchase obligations in the ordinary course of business, generally of a short-term nature. Those that are binding primarily relate to commitments for food purchases and supplies, capital projects, corporate assets, information technology, marketing initiatives and corporate sponsorships, and other miscellaneous items. Litigation We are involved in various claims and legal actions, such as wage and hour, wrongful termination and other employment-related claims, slip and fall and other personal injury claims, advertising and consumer claims, privacy claims, and lease, construction and other commercial disputes, that arise in the ordinary course of business, some of which may be covered by insurance. The outcomes of these actions are not predictable, but we do not believe that the ultimate resolution of any pending or threatened actions of these types will have a material adverse effect on our financial position, results of operations, liquidity, or capital resources. However, if there is a significant increase in the number of these claims, or if we incur greater liabilities than we currently anticipate under one or more claims, it could materially and adversely affect our business, financial condition, results of operations and cash flows. Accrual for Estimated Liability In relation to various legal matters, we had an accrued legal liability balance of $ 7,382 and $ 15,227 included within accrued liabilities on the condensed consolidated balance sheet s as of September 30, 2023 and December 31, 2022, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt [Abstract] | |
Debt | 12. Debt As of September 30, 2023, we had a $ 500,000 revolving credit facility with JPMorgan Chase Bank (“JPMorgan”) as administrative agent. Borrowings on the credit facility bear interest at a rate equal to the Secured Overnight Financing Rate (“SOFR”) plus 1.475 %, which is subject to increase due to changes in our total leverage ratio as defined in the credit agreement. We are also obligated to pay a commitment fee of 0.175 % per year for unused amounts under the credit facility, which also may increase due to changes in our total leverage ratio. Further, we are subject to certain covenants defined in the credit agreement, which include maintaining a total leverage ratio of less than 3.0 x, maintaining a consolidated fixed charge coverage ratio of greater than 1.5 x, and limiting us from incurring additional indebtedness in certain circumstances. We had no outstanding borrowings under the credit facility and were in compliance with all covenants as of September 30, 2023 and December 31, 2022 . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions As of September 30, 2023, we owned approximately 10.2 % of the common stock outstanding of Tractor. As we are a significant customer of Tractor and maintain board representation, we are accounting for our investment under the equity method. Accordingly, we have identified Tractor as a related party. We purchase product from the supplier for sale to customers in our restaurants. During the three months ended September 30, 2023 and September 30, 2022, purchases from the supplier were $ 12,509 and $ 11,506 , respectively . During the nine months ended September 30, 2023 and September 30, 2022, purchases from the supplier were $ 32,682 and $ 28,330 , respectively. During the second quarter of 2023, we made an investment in the Series A preferred shares of Vebu Inc. (“Vebu”), a developer of restaurant automation technology. As we are a significant customer of Vebu and maintain board representation, we have determined that we maintain significant influence over Vebu. During the three months ended September 30, 2023 and September 30, 2022, purchases from Vebu were $ 248 and $ 502 , respectively. During the nine months ended September 30, 2023 and September 30, 2022, purchases from the supplier were $ 991 and $ 612 , respectively. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition [Abstract] | |
Liability Included in Unearned Revenue | September 30, December 31, 2023 2022 Gift card liability $ 115,244 $ 145,014 |
Revenue Recognized from Liability Balances | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Revenue recognized from gift card liability balance at the beginning of the year $ 6,481 $ 6,311 $ 56,402 $ 54,780 |
Changes in Liability Balance | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Chipotle Rewards liability, beginning balance $ 40,923 $ 29,381 $ 38,057 $ 25,572 Revenue deferred 32,947 32,621 95,672 92,495 Revenue recognized ( 32,794 ) ( 30,191 ) ( 92,653 ) ( 86,256 ) Chipotle Rewards liability, ending balance $ 41,076 $ 31,811 $ 41,076 $ 31,811 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Financial Instruments [Abstract] | |
Schedule of Cash, Cash Equivalents and Debt Investments by Significant Category | September 30, 2023 Adjusted cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Investments Long-term Investments Cash $ 86,629 $ - $ - $ 86,629 $ 86,629 $ - $ - Level 1 (1) Money market funds 439,176 - - 439,176 439,176 - - Time deposits 76,502 - - 76,502 76,502 - - U.S. Treasury securities 1,259,791 520 8,512 1,251,799 - 850,900 408,891 Subtotal 1,775,469 520 8,512 1,767,477 515,678 850,900 408,891 Level 3 Corporate debt security (2) 17,600 - 118 17,482 - 799 16,801 Notes receivable (3) 6,860 284 - 7,144 - - 7,144 Subtotal 24,460 284 118 24,626 - 799 23,945 Total $ 1,886,558 $ 804 $ 8,630 $ 1,878,732 $ 602,307 $ 851,699 $ 432,836 December 31, 2022 Adjusted cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Current Investments Long-term Investments Cash $ 75,829 $ - $ - $ 75,829 $ 75,829 $ - $ - Level 1 (1) Money market funds 232,477 - - 232,477 232,477 - - Time deposits 75,694 - - 75,694 75,694 - - U.S. Treasury securities 847,354 63 14,355 833,062 - 515,136 332,218 Subtotal 1,155,525 63 14,355 1,141,233 308,171 515,136 332,218 Level 3 Corporate debt security (2) 17,900 - 700 17,200 - - 17,900 Note receivable (3) 4,860 222 - 5,082 - - 5,082 Subtotal 22,760 222 700 22,282 - - 22,982 Total $ 1,254,114 $ 285 $ 15,055 $ 1,239,344 $ 384,000 $ 515,136 $ 355,200 (1) Level 1: Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. (2) The fair value of the corporate debt security is measured using Level 3 (unobservable) inputs. We determined the fair value for the corporate debt security using an internally-developed valuation model and unobservable inputs include credit and liquidity spreads and effective maturity. (3) We have elected to measure our investment in convertible notes receivable of private companies at fair value under the fair value option. The fair value of the notes receivable are measured using Level 3 (unobservable) inputs. We determined the fair value for the notes receivable using an internally-developed valuation model and unobservable inputs include estimates of the equity value of the underlying business and the timing and probability of future financing events. |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | Carrying Value September 30, Level 2023 2022 Leasehold improvements, property and equipment, net 3 $ 2,033 $ 194 Operating lease assets 3 4,321 551 Total $ 6,354 $ 745 |
Equity Investments (Tables)
Equity Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Investments [Abstract] | |
Schedule of Equity Investments | September 30, December 31, 2023 2022 Equity method investments $ 9,717 $ 11,697 Other investments 40,411 32,855 Total $ 50,128 $ 44,552 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation [Abstract] | |
Summary of Stock-Based Compensation Expense | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Stock-based compensation $ 36,614 $ 25,587 $ 88,751 $ 78,806 Stock-based compensation, net of income taxes $ 31,065 $ 22,067 $ 74,966 $ 67,541 Total capitalized stock-based compensation included in leasehold improvements, property and equipment, net on the condensed consolidated balance sheets $ 813 $ 437 $ 2,194 $ 1,435 Excess tax benefit on stock-based compensation recognized in Provision for income taxes on the condensed consolidated statements of income and comprehensive income $ 994 $ 3,711 $ 23,004 $ 24,383 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow Related to Leases | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Cash paid for operating lease liabilities $ 105,416 $ 97,627 $ 312,214 $ 287,048 Operating lease assets obtained in exchange for operating lease liabilities $ 185,519 $ 163,916 $ 438,510 $ 373,971 Derecognition of operating lease assets due to terminations or impairment $ 1,232 $ 6,112 $ 6,391 $ 12,585 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Net income $ 313,217 $ 257,138 $ 946,651 $ 675,374 Shares: Weighted-average number of common shares outstanding (for basic calculation) 27,550 27,773 27,593 27,907 Dilutive stock awards 131 183 146 209 Weighted-average number of common shares outstanding (for diluted calculation) 27,681 27,956 27,739 28,116 Basic earnings per share $ 11.37 $ 9.26 $ 34.31 $ 24.20 Diluted earnings per share $ 11.32 $ 9.20 $ 34.13 $ 24.02 |
Stock Awards Excluded from the Calculation of Diluted EPS | Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Stock awards subject to performance conditions 56 61 54 60 Stock awards that were antidilutive 61 167 93 164 Total stock awards excluded from diluted earnings per share 117 228 147 224 |
Basis of Presentation and Upd_2
Basis of Presentation and Update to Accounting Policies (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 item region segment | |
Product Information [Line Items] | |
Number of restaurants | 3,321 |
Number of regions | region | 8 |
Number of reportable segments | segment | 1 |
United States [Member] | Chipotle [Member] | |
Product Information [Line Items] | |
Number of restaurants | 3,260 |
International [Member] | Chipotle [Member] | |
Product Information [Line Items] | |
Number of restaurants | 61 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Majority gift card breakage revenue recognition period | 1 year |
Earned Points Expiration Period For Inactivity | 6 months |
Minimum [Member] | |
Earned rewards, expiration period | 1 month |
Maximum [Member] | |
Earned rewards, expiration period | 2 months |
Revenue Recognition (Liability
Revenue Recognition (Liability Included in Unearned Revenue) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Gift Card [Member] | ||
Liability in unearned revenue | $ 115,244 | $ 145,014 |
Revenue Recognition (Revenue Re
Revenue Recognition (Revenue Recognized from Liability Balances) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Gift Card [Member] | ||||
Revenue recognized from gift card liability balance at the beginning of the year | $ 6,481 | $ 6,311 | $ 56,402 | $ 54,780 |
Revenue Recognition (Changes in
Revenue Recognition (Changes in Liability Balance) (Details) - Chipotle Rewards [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Chipotle Rewards liability, beginning balance | $ 40,923 | $ 29,381 | $ 38,057 | $ 25,572 |
Revenue deferred | 32,947 | 32,621 | 95,672 | 92,495 |
Revenue recognized | (32,794) | (30,191) | (92,653) | (86,256) |
Chipotle Rewards liability, ending balance | $ 41,076 | $ 31,811 | $ 41,076 | $ 31,811 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value of Financial Instruments [Abstract] | ||||
Asset impairments | $ 1,611 | $ 698 | $ 10,726 | $ 1,796 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Schedule of Cash, Cash Equivalents and Debt Investments by Significant Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 602,307 | $ 384,000 |
Total Adjusted Cost | 1,886,558 | 1,254,114 |
Unrealized Gains | 804 | 285 |
Unrealized Losses | 8,630 | 15,055 |
Total Fair Value | 1,878,732 | 1,239,344 |
Current Investments | 851,699 | 515,136 |
Long-term Investments | 432,836 | 355,200 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 515,678 | 308,171 |
Total Adjusted Cost | 1,775,469 | 1,155,525 |
Unrealized Gains | 520 | 63 |
Unrealized Losses | 8,512 | 14,355 |
Total Fair Value | 1,767,477 | 1,141,233 |
Current Investments | 850,900 | 515,136 |
Long-term Investments | 408,891 | 332,218 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Adjusted cost | 24,460 | 22,760 |
Unrealized Gains | 284 | 222 |
Unrealized Losses | 118 | 700 |
Fair Value | 24,626 | 22,282 |
Current Investments | 799 | |
Long-term Investments | 23,945 | 22,982 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Adjusted cost | 1,259,791 | 847,354 |
Unrealized Gains | 520 | 63 |
Unrealized Losses | 8,512 | 14,355 |
Fair Value | 1,251,799 | 833,062 |
Current Investments | 850,900 | 515,136 |
Long-term Investments | 408,891 | 332,218 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Adjusted cost | 17,600 | 17,900 |
Unrealized Losses | 118 | 700 |
Fair Value | 17,482 | 17,200 |
Current Investments | 799 | |
Long-term Investments | 16,801 | 17,900 |
Notes Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Adjusted cost | 6,860 | 4,860 |
Unrealized Gains | 284 | 222 |
Fair Value | 7,144 | 5,082 |
Long-term Investments | 7,144 | 5,082 |
Cash [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 86,629 | 75,829 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 439,176 | 232,477 |
Time Deposits [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 76,502 | $ 75,694 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (Summary of Assets Measured at Fair Value on Nonrecurring Basis) (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 6,354 | $ 745 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Leasehold improvements, property and equipment, net | 2,033 | 194 |
Operating leases assets | $ 4,321 | $ 551 |
Equity Investments (Narrative)
Equity Investments (Narrative) (Details) - USD ($) shares in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Carrying value | $ 9,717,000 | $ 11,697,000 | |
Long-term investments | $ 473,247,000 | 388,055,000 | |
Tractor [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment shares owned | 4,325 | ||
Ownership percentage | 10.20% | ||
Cash consideration | $ 10,000,000 | ||
Equity method investment, impairment | 0 | $ 0 | |
Carrying value | 9,717,000 | 11,697,000 | |
Tractor Warrants [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value | $ 10,747,000 | 10,747,000 | |
Number of shares that may be called by warrants | 3,772 | ||
Nuro [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment shares owned | 766 | ||
Recognized gain | $ 5,968,000 | ||
Long-term investments | 15,968,000 | 15,968,000 | |
Cultivate Fund [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value | $ 13,696,000 | $ 6,140,000 |
Equity Investments (Schedule of
Equity Investments (Schedule of Equity Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Equity Investments [Abstract] | ||
Equity method investments | $ 9,717 | $ 11,697 |
Other investments | 40,411 | 32,855 |
Total | $ 50,128 | $ 44,552 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 13, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock surrendered as payment | $ 229,596 | $ 88,319 | $ 198,819 | $ 107,334 | $ 267,198 | $ 345,921 | ||
Value of common shares authorized for repurchasing | $ 368,369 | $ 368,369 | ||||||
Additional Authorization [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Value of common shares authorized for repurchasing | $ 300,000 | |||||||
Repurchases in Accordance with Stock Award Agreements [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Acquisition of treasury stock (shares), total | 41 | |||||||
Common stock surrendered as payment | $ 68,613 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date fair value | $ / shares | $ 1,606.91 |
Units vested | 49,000 |
Units forfeited | 3,000 |
Performance shares granted | 24,000 |
Weighted-average Black-Scholes fair value per share at date of grant | $ / shares | $ 1,606.91 |
Performance and market measurement period | 3 years |
Performance Shares [Member] | Defined Minimum Targets Not Met [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units vested | 0 |
SOSARs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | 72,000 |
Shares forfeited | 18,000 |
Grant date fair value | $ / shares | $ 521.66 |
Granted, weighted-average exercise price | $ / shares | $ 1,615.39 |
Shares exercised | 94,000 |
Weighted-average Black-Scholes fair value per share at date of grant | $ / shares | $ 521.66 |
SOSARs [Member] | Vesting Period 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
SOSARs [Member] | Vesting Period 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted | 35,000 |
Shares forfeited | 8,000 |
Grant date fair value | $ / shares | $ 1,647.04 |
Units vested | 22,000 |
Weighted-average Black-Scholes fair value per share at date of grant | $ / shares | $ 1,647.04 |
Restricted Stock Units (RSUs) [Member] | Vesting Period 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
Restricted Stock Units (RSUs) [Member] | Vesting Period 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Minimum [Member] | Performance Shares [Member] | Vesting Period 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Targeted number of shares, quantity that will vest, percentage | 0% |
Maximum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of target number of shares to be earned if certain criteria is met | 100% |
Maximum [Member] | Performance Shares [Member] | Vesting Period 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Targeted number of shares, quantity that will vest, percentage | 300% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation | $ 36,614 | $ 25,587 | $ 88,751 | $ 78,806 |
Stock-based compensation, net of income taxes | 31,065 | 22,067 | 74,966 | 67,541 |
Total capitalized stock-based compensation included in leasehold improvements, property and equipment, net on the condensed consolidated balance sheets | 813 | 437 | 2,194 | 1,435 |
Excess tax benefit on stock-based compensation recognized in Provision for income taxes on the condensed consolidated statements of income and comprehensive income | $ 994 | $ 3,711 | $ 23,004 | $ 24,383 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Taxes [Abstract] | ||||
Effective income tax rate | 24.20% | 24.40% | 23.50% | 23.10% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Lessee, Lease, Description [Line Items] | |
Option to extend, additional periods | 5 years |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 20 years |
Renewal period | 20 years |
Leases (Schedule of Supplementa
Leases (Schedule of Supplemental Cash Flow Related to Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Cash paid for operating lease liabilities | $ 105,416 | $ 97,627 | $ 312,214 | $ 287,048 |
Operating lease assets obtained in exchange for operating lease liabilities | 185,519 | 163,916 | 438,510 | 373,971 |
Derecognition of operating lease assets due to terminations or impairment | $ 1,232 | $ 6,112 | $ 6,391 | $ 12,585 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 313,217 | $ 341,790 | $ 291,644 | $ 257,138 | $ 259,942 | $ 158,294 | $ 946,651 | $ 675,374 |
Weighted-average number of common shares outstanding (for basic calculation) | 27,550 | 27,773 | 27,593 | 27,907 | ||||
Dilutive stock awards | 131 | 183 | 146 | 209 | ||||
Weighted-average number of common shares outstanding (for diluted calculation) | 27,681 | 27,956 | 27,739 | 28,116 | ||||
Basic earnings per share | $ 11.37 | $ 9.26 | $ 34.31 | $ 24.20 | ||||
Diluted earnings per share | $ 11.32 | $ 9.20 | $ 34.13 | $ 24.02 |
Earnings Per Share (Stock Award
Earnings Per Share (Stock Awards Excluded from the Calculation of Diluted EPS) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Stock awards subject to performance conditions | 56 | 61 | 54 | 60 |
Stock awards that were antidilutive | 61 | 167 | 93 | 164 |
Total stock awards excluded from diluted earnings per share | 117 | 228 | 147 | 224 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies [Abstract] | ||
Loss contingency accrual | $ 7,382 | $ 15,227 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - Revolving Credit Facility [Member] - JPMorgan Chase Bank [Member] | 9 Months Ended | |
Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 500,000,000 | |
Credit facility, commitment fee percentage | 0.175% | |
Total leverage ratio | 3 | |
Fixed charge coverage ratio | 1.5 | |
Credit facility, amount outstanding | $ 0 | $ 0 |
SOFR [Member] | ||
Line of Credit Facility [Line Items] | ||
Additional interest | 1.475% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Tractor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 10.20% | 10.20% | ||
Purchases from related party | $ 12,509 | $ 11,506 | $ 32,682 | $ 28,330 |
Vebu [Member] | Series A Preferred Stock [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchases from related party | $ 248 | $ 502 | $ 991 | $ 612 |