What Makes Chipotle Mexican Grill (CMG) a Robust Long-Term Holding?

Fund Performance - Tapasya Fund celebrated its third anniversary in August 2025 and reported strong absolute returns, achieving a net return of 23.5% in 2025, outperforming the S&P 500's return of 17.9% [1] - The year 2025 was characterized by significant market fluctuations due to tariffs, with a notable correction in April followed by a robust rebound [1] - The theme of Artificial Intelligence (AI) contributed to market support during volatility, leading to over 38 new all-time highs in the year [1] Chipotle Mexican Grill, Inc. (CMG) Overview - Chipotle Mexican Grill, Inc. experienced a one-month return of 8.41% but saw a significant decline of 30.65% over the last 52 weeks, with a market capitalization of $52.536 billion as of January 8, 2026 [2] - The company faced disappointing performance in 2025 due to increased competition and margin pressure from rising labor and food costs, which outpaced menu price increases [3] Investment Perspective on Chipotle - Despite the challenges faced in 2025, Tapasya Fund maintains a strong conviction in Chipotle as a long-term holding, citing its strong brand, superior unit economics, and potential for expansion [3] - The current market pessimism regarding Chipotle is viewed as a buying opportunity, with intentions to treat it as a foundational, multi-year holding [3] - Chipotle's sales for the third quarter of 2025 grew by 7.5%, reaching $3 billion, although it is not among the 30 most popular stocks among hedge funds [4]