Down 48%, Should You Buy Chipotle (CMG) Stock in 2026? Here's What Investors Need to Know.

• Chipotle is struggling with weaker ft traffic, arsenic definite consumers consciousness the unit successful today’s economy.

• Management plans to proceed the assertive gait of caller store openings.

• With the banal taking a hit, investors are looking astatine a valuation that’s astatine a five-year low.

• 10 stocks we similar amended than Chipotle Mexican Grill ›

Chipotle Mexican Grill (NYSE: CMG) is simply a pioneer successful the edifice industry, having introduced the fast-casual conception to the masses. The company's occurrence has inspired entrepreneurs to motorboat akin setups focusing connected antithetic cuisines.

Despite being a trailblazer and holding a beardown presumption successful the market, this once-booming edifice banal is taking it connected the chin. If you're looking to buy the dip connected Chipotle, here's what you request to cognize arsenic we look to 2026.

In the 5 years starring up to their highest successful June 2024, Chipotle shares had surged 368%. So it's alarming erstwhile you spot the banal drastically underperforming the S&P 500 successful 2025, with shares tanking 38% successful the twelvemonth (as of Dec. 17). Clearly, the concern is dealing with immoderate issues that are making it suffer the market's confidence.

In February, Chipotle was forecasting same-store sales (SSS) maturation successful the debased to mid-single-digit scope for 2025. During the latest quarterly update connected Oct. 29, however, executives updated their guidance, present expecting SSS to diminution successful the debased azygous digits this year. That's a notable downgrade that has travel from weaker fiscal show successful caller quarters.

The astir alarming inclination is softer traffic. Transaction counts decreased 0.8% successful the 3rd 4th (ended Sept. 30). Younger and lower-income radical are ordering Chipotle little often.

Chipotle has besides tried to code the backlash it faced from customers who believed the portions were excessively small. That doesn't enactment the brand's perception. Nonetheless, CEO Scott Boatwright believes the institution inactive provides a compelling value proposition comparative to fast-casual competitors.

The U.S. isn't officially successful a recession, but consumers are decidedly pulling back, arsenic they woody with what seems similar higher costs crossed the board. It makes consciousness that they'd take to devour retired less. But if the Federal Reserve's accommodative monetary argumentation displacement tin thrust economical confidence, spending could get a boost, which would payment Chipotle.

Regardless of what macroeconomic developments occur, the concern indispensable proceed to absorption connected areas that got it to the apical of the edifice industry. Things similar paper innovation, integer capabilities, and nutrient prime are inactive priorities for management.