Chipotle Mexican Grill(US:CMG) The Motley Fool·2026-01-14 02:32Core Viewpoint - Chipotle Mexican Grill's stock has significantly declined from its peak, trading 41% below its all-time high, raising questions about its growth potential in the current market environment [1] Financial Performance - Chipotle's same-store sales experienced a decline in the first and second quarters of the previous year, but showed a slight recovery with a growth of 0.3% in the third quarter [2] - For 2023 and 2024, same-store sales are projected to increase by 7.9% and 7.4% respectively, indicating a promising long-term trend [2] - The company's Q3 operating margin decreased to 15.9% from 16.9% in the previous year, impacted by tariffs and rising beef costs [4] Market Sentiment - Consumer confidence in the U.S. is at its lowest in decades, leading to more cautious spending habits, particularly among lower-income households, which is affecting dining out trends [2][3] - CEO Scott Boatwright noted that the challenges faced by lower-income households are not unique to Chipotle, citing factors such as unemployment and slower real wage growth [3] Growth Prospects - Chipotle plans to open 350 to 370 net new stores in 2026, with a long-term goal of reaching 7,000 locations in the U.S. and Canada, indicating ongoing growth potential [6] - The company maintains strong brand recognition and competitive advantages in the fast-casual dining sector, which supports its long-term revenue and earnings growth [5][6]