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News  ›  The Motley Fool

Chipotle Mexican Grill: Growth Stock to Buy Now or Wait-and-See Story?​

The Motley Fool Logo The Motley Fool By Neil Patel
Chipotle Mexican Grill: Growth Stock to Buy Now or Wait-and-See Story?​

Chipotle's stock has declined 41% from its June 2024 peak due to weakening consumer spending, particularly among lower-income households, and margin pressures from tariffs and rising beef costs. Despite Q3 same-store sales growth slowing to 0.3%, the analyst remains bullish on the company's long-term prospects, citing strong brand recognition, scale advantages, and aggressive expansion plans targeting 7,000 U.S. and Canadian locations.

Insights
MNYWW   positive

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CMG   positive

Despite near-term headwinds including declining same-store sales growth (0.3% in Q3), margin compression (15.9% vs 16.9% YoY), and consumer spending weakness, the analyst maintains a bullish outlook based on strong brand positioning, competitive moat, scale advantages, and significant long-term growth potential with plans to expand from 3,916 to 7,000 locations. The article frames current weakness as temporary economic cyclicality rather than fundamental business deterioration.