Chipotle Mexican Grill (CMG) Slid on Broad-Based Decline in Consumer Spending

Magellan Asset Management, an investment management company, released the third quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 7.3% in the September quarter. The portfolio underperformed the index in the quarter due strong performance of more speculative companies in the risk-on environment. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Magellan Global Fund 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 18.38%, and its shares lost 44.23% of their value over the last 52 weeks. On December 12, 2025, Chipotle Mexican Grill, Inc.  (NYSE:CMG) stock closed at $36.14 per share, with a market capitalization of $48.46 billion.

Magellan Global Fund stated the following regarding Chipotle Mexican Grill, Inc.  (NYSE:CMG) in its third quarter 2025 investor letter:

“The largest detractors to the portfolio’s performance over the quarter were Chipotle Mexican Grill, Inc.  (NYSE:CMG), Intuit & SAP. Chipotle detracted from performance after reporting disappointing second-quarter revenue and subsequently downgrading its full-year guidance. The results were affected by a broad based pullback in discretionary spending by US consumers and soft industry-wide restaurant traffic. We view these pressures as cyclical rather than structural with the long-term thesis based on the long runway for store expansion intact and tailwinds supporting the Mexican food and health conscious QSR category.”

Jim Cramer on Chipotle Mexican Grill (CMG): “I Think Chipotle's Making a Comeback”

Chipotle Mexican Grill, Inc.  (NYSE:CMG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. AAs 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 risk and potential of Chipotle Mexican Grill, Inc.  (NYSE:CMG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Chipotle Mexican Grill, Inc.  (NYSE:CMG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Chipotle Mexican Grill, Inc.  (NYSE:CMG) and shared the list of best blue-chip stocks to buy under $50. ClearBridge Large Cap Growth Strategy purchased Chipotle Mexican Grill, Inc.  (NYSE:CMG) during Q3 2025. 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.