Is There a Future For Chipotle Mexican Grill?

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 (NYSE: CMG) 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.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: short December 2025 $45 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.