Chipotle’s Growth Woes Spark Investor Concerns

Chipotle Mexican Grill (CMG), once a Wall Street darling, is facing mounting skepticism as its growth engine sputters. The fast-casual chain reported a troubling 4% decline in same-store sales last quarter, driven by plummeting customer traffic despite ongoing price increases. This marks a stark reversal for a company that consistently delivered premium valuations based on unit expansion and COMP growth.

The erosion of Chipotle's traffic metrics suggests deeper challenges than temporary headwinds. With restaurant-level economics deteriorating, investors have punished the stock—down 28% year-to-date—as questions emerge about saturation risks and consumer fatigue. The chain's international ambitions now face heightened scrutiny amid weakening domestic performance.