Chipotle Mexican Grill Announces $500 Million Stock Buyback Amid Market Challenges

Chipotle Mexican Grill has authorized an additional $500 million in stock repurchases, supplementing its existing buyback program. The MOVE comes as CMG shares languish 35% below their yearly peak, battered by weakening consumer demand and macroeconomic headwinds.

Restaurant traffic has slowed across the discretionary spending spectrum, with Chipotle's same-store sales declining 4% year-over-year—worse than the anticipated 2.9% drop. Valuation concerns persist, with shares trading at 35 times forward earnings estimates despite the pullback.

The company had $839 million remaining in its longstanding repurchase authorization at last quarter's close. Since 2008, Chipotle has deployed nearly $1 billion annually in buybacks, though the program's open-ended structure provides no guaranteed price support.