The market has been choppy as of late. But the S&P 500 index is still trading in record territory, which might be discouraging for investors who are on the hunt for bargain stocks to buy.
Not all hope is lost. As of this writing, there's a beaten-down but promising stock that's trading 43% below its all-time high, which was established in June 2024. Despite its terrible performance over the past year and a half, there's an opportunity here for those who can be patient.
And there's one good reason to think this consumer stock could skyrocket over the next five years.
Image source: Getty Images.
Searching for value
Investors should take a closer look at Chipotle Mexican Grill (CMG 3.15%), the fast casual trailblazer. The Tex-Mex chain struggled last year, reporting a 2.5% same-store sales decline in Q4. This was propelled by a 3.2% drop in foot traffic.
Making matters worse was the fact that management doesn't see much improvement coming in the near term: It forecast that same-store sales will be flat in 2026.
There is, however, a positive spin to be offered on the situation. The entire restaurant sector is feeling the pressure of lower consumer discretionary spending these days. People are really searching for value, particularly among lower-income demographics.
NYSE: CMG
Key Data Points
Serving up more burritos
The reason that investors should still be optimistic about Chipotle, though, comes down to the chain's growth plan.
Chipotle opened 324 net new stores in 2025, bringing its total to 4,042 company-owned locations. (This doesn't include the 14 locations that are operated under a licensing agreement in the Middle East.) So far, the pace of openings has accelerated dramatically year by year.
In 2026, the plan is to open 350 to 370 new restaurants. Over the long run, management believes that the North American market could support 7,000 Chipotle locations. With that much expansion on tap, there is a strong likelihood that Chipotle's revenues and profits will be significantly greater five years from now. Even in a disappointing year like 2025, after all, its diluted earnings per share were still up compared to 2024.
It's understandable if investors have become pessimistic. The chain's consistent financial gains in the years leading up to the COVID-19 pandemic and after the health crisis receded were impressive, and helped it stand out in a competitive restaurant industry. Yet even mighty businesses can hit a rough patch.
Again, the headwinds the company is facing come from conditions that are causing problems industrywide. They're not anything specific to Chipotle. But industry conditions and consumer behavior will eventually normalize, as these things go. And that bodes well for shareholders in Chipotle who can invest for the long haul and ride out this period of weakness.
