Should You Be Confident in Chipotle Mexican Grill’s (CMG) Growth Trajectory?

In its third-quarter 2025 capitalist letter, the SGA U.S. Large Cap Growth Strategy highlighted stocks specified arsenic Chipotle Mexican Grill, Inc. (NYSE:CMG). Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. The one-month instrumentality of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 8.35%, and its shares mislaid 38.22% of their worth implicit the past 52 weeks. On December 31, 2025, Chipotle Mexican Grill, Inc.  (NYSE:CMG) banal closed astatine $37.00 per share, with a marketplace capitalization of $49.613 billion.

SGA U.S. Large Cap Growth Strategy stated the pursuing regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) successful its 3rd 4th 2025 capitalist letter:

"Chipotle Mexican Grill, Inc. (NYSE:CMG) was a detractor during the 4th arsenic its comparable income maturation fell conscionable 1% abbreviated of statement (declining 4% against a precise pugnacious 11% examination successful the twelvemonth agone period). We had expected a challenging 4th owed to pugnacious comparisons from the anterior year, but this was somewhat beneath our expectations arsenic the user situation continued to weaken. Management targets low-teens gross and mid-teens nett growth, driven by 8-10% yearly portion expansion, debased to mid-single-digit same-store income growth, and borderline enlargement implicit a 3-5 twelvemonth period. This portion enlargement is underpinned by Chipotle's best-in-class caller portion economics which continued to travel successful strong, providing assurance determination remains achromatic abstraction for the institution to scope its semipermanent people of 7,000 restaurants successful North America. Additionally, the institution has begun to acceptable the signifier for planetary enlargement with aboriginal traction successful Canada and Europe portion bringing connected caller partners successful caller regions specified arsenic the Middle East, Asia, and Latin America. We besides judge determination is simply a way for the institution to thrust an betterment successful comparable income maturation done an acceleration successful caller paper innovation, continued throughput improvements, and caller integer selling initiatives. Risks we proceed to show see show successful a much challenging user environment, quality to standard its conception internationally, and immoderate nutrient information events oregon different activities that interaction semipermanent marque equity. While the near-term user spending situation volition stay challenging, Chipotle has a nett currency equilibrium sheet, generates beardown free-cash-flow it tin usage to money its store enlargement plans, and has respective levers it tin propulsion to reignite postulation maturation which gives america assurance it tin proceed to present connected its longer-term ambitions. Despite a much challenging user environment, we stay assured successful the semipermanent trajectory for this concern and added to the presumption connected weakness during the 4th maintaining an mean value target."