Here’s Why Chipotle Mexican Grill (CMG) Fell in Q3

ClearBridge Investments, an investment management firm, released its third-quarter 2023 “Mid Cap Growth Strategy” investor letter, a copy of which can be downloaded here. The strategy underperformed its benchmark Russell Midcap Growth Index in the quarter. Overall, the effects of stock selection impacted the performance on a relative basis. The strategy gained three of the 11 sectors it was invested during the quarter on an absolute basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Mid Cap Growth Strategy highlighted stocks like Chipotle Mexican Grill, Inc. (NYSE:CMG) in the third quarter 2023 investor letter. Headquartered in Newport Beach, California, Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. On December 12, 2023, Chipotle Mexican Grill, Inc. (NYSE:CMG) stock closed at $2,320.39 per share. One-month return of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 7.63%, and its shares gained 50.84% of their value over the last 52 weeks. Chipotle Mexican Grill, Inc. (NYSE:CMG) has a market capitalization of $63.682 billion.

ClearBridge Mid Cap Growth Strategy made the following comment about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q3 2023 investor letter:

“In the consumer discretionary sector, Chipotle Mexican Grill, Inc. (NYSE:CMG) proved a detractor as investors were disappointed in management’s decision not to push additional menu pricing, which resulted in full year guidance falling short of expectations. However, we believe this is just a timing mismatch as their value proposition relative to peers leaves room for continued strong pricing power.”

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Susan Law Cain / Shutterstock.com

Chipotle Mexican Grill, Inc. (NYSE:CMG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of third quarter which was 55 in the previous quarter.

We discussed Chipotle Mexican Grill, Inc. (NYSE:CMG) in another article and shared Skye Global’s top stock picks. In addition, please check out our hedge fund investor letters Q3 2023 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.