Has Chipotle Mexican Grill (CMG) Stock Been Good for Investors?

Core Viewpoint - Chipotle has experienced significant stock performance fluctuations, with a notable decline in the past year despite a strong long-term track record, leading to underperformance compared to the broader market [1][2]. One-Year Return - Chipotle's stock has decreased by 44.5% over the past year, primarily due to rising food costs and plateauing same-store sales growth, with a projected decline in same-store sales for Q4 [1]. - In contrast, the S&P 500 has increased by 13.2% this year, resulting in a 57.7 percentage point underperformance for Chipotle shareholders [2]. Three-Year Return - Over the past three years, Chipotle's stock has only risen by 5.1%, erasing gains from the previous two years, despite a 100% increase between December 2022 and June 2024 [3]. - The S&P 500 has gained 67.5% over the same period, indicating a 62.4 percentage point underperformance for Chipotle investors [4]. Five-Year Return - Investors who purchased Chipotle stock in December 2020 have seen a return of 29.3% over five years, which is significantly lower than the market's 86.5% return [5]. - An investment made on June 10, 2019, would currently outperform the S&P 500, with returns of 137.1% compared to 136.6% [5]. Investment Insights - Chipotle's stock exemplifies the benefits of long-term buy-and-hold investing in quality companies, as it has historically rewarded shareholders who maintain their investments despite short-term volatility [6].