Chipotle (CMG) Shares Plunge 38.6% in 2025 Amid Market Saturation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Significant Stock Decline: Chipotle's shares fell 38.6% in 2025 due to poor traffic and sales figures, prompting investor sell-offs and reflecting market concerns about future growth potential.
- Market Saturation Concerns: With over 4,000 locations in North America, worries about market saturation are increasing, which could inhibit growth prospects in the coming years and negatively impact overall company performance.
- Stagnant Same-Store Sales: For the first three quarters of 2025, same-store sales growth was recorded at 0%, 4%, and 0%, significantly below the inflation rate in the restaurant sector, indicating challenges in maintaining profitability.
- Declining Profitability: Chipotle's operating margin fell to 16.4% over the past twelve months from a peak of 17%, and if same-store sales remain weak, further compression of operating margins is expected, adversely affecting earnings per share growth.
Analyst Views on CMG
Wall Street analysts forecast CMG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMG is 46.63 USD with a low forecast of 34.00 USD and a high forecast of 58.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
20 Buy
6 Hold
0 Sell
Strong Buy
Current: 40.590
Low
34.00
Averages
46.63
High
58.00
Current: 40.590
Low
34.00
Averages
46.63
High
58.00
About CMG
Chipotle Mexican Grill, Inc. is a restaurant company. The Company develops and operates restaurants that serve a menu of burritos, burrito bowls, quesadillas, tacos, and salads, made using fresh ingredients. The Company operates approximately 3839 restaurants in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates. It owns and operates all its restaurants in North America and Europe. The Company is focused in serving sourced, classically cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Its menu includes Burrito, Burrito Bowl, Lifestyle Bowl, Quesadilla, Salad, Tacos, Kid’s Meal, Chips and Sides, and Build your Own (digital only). It also includes Raymonte’s Chicken Bowl, The Mr. Fantasy Burrito, Carne Asada, Build-Your-Own Chipotle, catering and group order. Its subsidiaries include Chipotle Mexican Grill Canada Corp., Chipotle Mexican Grill France SAS, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
