With a market cap of $67.5 billion, Chipotle Mexican Grill, Inc. (CMG) is a leading quick-casual restaurant chain renowned for its fresh, customizable Mexican-inspired menu, including burritos, bowls, tacos, and salads. The company emphasizes high-quality ingredients such as free-range, hormone-free meats and natural produce, served in a fast-casual setting. 

Companies valued at more than $10 billion are generally considered “large-cap” stocks, and Chipotle fits this criterion perfectly.  Chipotle operates in multiple countries, offering dine-in, takeout, and delivery services through its app and website.

Shares of the Newport Beach, California-based company have declined 27.7% from its 52-week high of $69.26. Chipotle Mexican Grill’s shares have dipped 7.8% over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 2.1% rise over the same time frame. 

In the longer term, CMG stock is down nearly 17% on a YTD basis, underperforming SPX’s 1.5% rise. Moreover, shares of the Mexican food chain company have dropped 18.6% over the past 52 weeks, compared to the 13% return of the SPX over the same time frame.

Despite recent fluctuations, the stock has been trading below its 50-day and 200-day moving averages since the beginning of this year.

On Apr. 23, Chipotle reported Q1 2025 revenue of $2.9 billion, falling short of expectations. However, shares rose 1.6% the following day as the company delivered a strong earnings beat, with adjusted EPS of $0.29, up 7.4% year-over-year and above estimates. Positive investor sentiment was further supported by the opening of 57 new restaurants, continued international growth, expanded Chipotle locations, and a 7.5% rise in adjusted net income to $396.8 million.

Nevertheless, Chipotle Mexican Grill has underperformed its rival, McDonald's Corporation (MCD). MCD stock has increased 20.3% over the past 52 weeks and 7.8% on a YTD basis. 

Despite the stock’s weak performance, analysts remain moderately optimistic on CMG. The stock has a consensus rating of “Moderate Buy” from the 30 analysts covering it, and as of writing, CMG is trading below the mean price target of $58.87.