With its success at scaling the fast casual dining concept across the U.S., Chipotle Mexican Grill (NYSE: CMG) is a trailblazer in the restaurant sector. But the stock is getting pummeled of late. It’s trading 41% off its record high (as of Jan. 21).
Right now, shares go for well below $45. Is Chipotle a buy?
When the business reports financial results for fourth-quarter 2025 (ended Dec. 31) on Feb. 3, Chipotle plans to post a same-store sales decline in the low single-digit range for the full year of 2025. Weaker foot traffic in an uncertain macro backdrop among lower-income consumers is the culprit. Market sentiment for the stock has made a negative shift, especially since Chipotle has typically operated from a position of fundamental strength.
However, investors should still consider buying the stock. The valuation, which is more attractive now, is one reason why. Shares can be purchased at a price-to-earnings ratio of 35.9, near a five-year low.
Chipotle continues to expand rapidly. It’s looking to nearly double the current footprint to 7,000 locations in the U.S. and Canada in the long run. This doesn’t include the company’s smaller presence in various international markets.
The business has brand recognition in the industry, and its scale has resulted in significant profitability. Patient investors will want to take a closer look at Chipotle stock while it’s on the dip and trading below $45.
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