Is There a Future For Chipotle Mexican Grill?

• A tighter macro situation is hurting user spending, affecting Chipotle's same-store sales.

• The banal has beauteous overmuch ne'er been cheaper successful the past 5 years.

• 10 stocks we similar amended than Chipotle Mexican Grill ›

With much than 3,900 company-owned locations and $11.8 cardinal successful trailing 12-month revenue, there's nary question that Chipotle Mexican Grill (NYSE: CMG) is simply a ascendant unit successful the edifice manufacture broadly and the accelerated casual niche specifically. It's a fashionable prime among consumers.

But this edifice banal has disappointed investors recently, arsenic it has tanked 39% successful the past twelvemonth (as of Dec. 19). Is determination a aboriginal for Chipotle?

Chipotle is connected a spot of a acold streak close now. The Tex-Mex concatenation reported declining year-over-year same-store sales successful the archetypal 2 quarters of 2025, followed by a anemic 0.3% summation successful the 3rd quarter. Foot postulation has been soft, arsenic radical tighten their spending successful today's macro environment.

However, this doesn't mean Chipotle is simply a dying business. In fact, it's growing. Management plans to unfastened 350 to 370 caller stores successful 2026, aft opening 330 (at the forecast midpoint) this year. A decennary from now, the institution volition beryllium raking successful much gross and profits.

Investors funny successful the banal tin instrumentality vantage of a price-to-earnings ratio of 33.2 that's adjacent a five-year low. There mightiness beryllium immoderate cardinal weakness successful the adjacent word arsenic Chipotle navigates the uncertain economy, but its semipermanent prospects look bright.

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