With more than 3,900 company-owned locations and $11.8 billion in trailing 12-month revenue, there's no question that Chipotle Mexican Grill (CMG +0.21%) is a dominant force in the restaurant industry broadly and the fast casual niche specifically. It's a popular choice among consumers.
But this restaurant stock has disappointed investors recently, as it has tanked 39% in the last year (as of Dec. 19). Is there a future for Chipotle?
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Chipotle is hitting a speed bump
Chipotle is on a bit of a cold streak right now. The Tex-Mex chain reported declining year-over-year same-store sales in the first two quarters of 2025, followed by a weak 0.3% gain in the third quarter. Foot traffic has been soft, as people tighten their spending in today's macro environment.
However, this doesn't mean Chipotle is a dying business. In fact, it's growing. Management plans to open 350 to 370 new stores in 2026, after opening 330 (at the forecast midpoint) this year. A decade from now, the company will be raking in more revenue and profits.
Shares are historically cheap
Investors interested in the stock can take advantage of a price-to-earnings ratio of 33.2 that's near a five-year low. There might be some fundamental weakness in the near term as Chipotle navigates the uncertain economy, but its long-term prospects look bright.
