Here's What Hit Chipotle Mexican Grill (CMG) in Q3

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the third quarter of 2025, which increased approximately 3%.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted stocks such as Chipotle Mexican Grill, Inc. (NYSE:CMG). Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. The one-month return of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 23.99%, and its shares lost 39.05% of their value over the last 52 weeks. On December 17, 2025, Chipotle Mexican Grill, Inc.  (NYSE:CMG) stock closed at $37.00 per share, with a market capitalization of $48.92 billion.

Brown Advisory Mid-Cap Growth Strategy stated the following regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) in its third quarter 2025 investor letter:

"Chipotle Mexican Grill, Inc. (NYSE:CMG) shares declined in the quarter following a second consecutive comp miss, which reignited debate over whether the slowdown reflects a tougher macro backdrop or a more mature growth profile. Same-store sales and traffic trends weakened as lower-income consumers pulled back and average check growth moderated. While margins and capital allocation were in line with consensus expectations, near-term traffic softness overshadowed otherwise steady execution."

Chipotle Mexican Grill, Inc.  (NYSE:CMG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of the third quarter, which was 68 in the previous quarter. Chipotle Mexican Grill, Inc.’s (NYSE:CMG) sales for the third quarter of 2025 grew 7.5% to reach $3 billion.  While we acknowledge the potential of Chipotle Mexican Grill, Inc. (NYSE:CMG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Chipotle Mexican Grill, Inc. (NYSE:CMG) and shared Magellan Global Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.