3 Reasons Why Chipotle Is Down 53% Since Its 50-for-1 Stock Split

Chipotle Mexican Grill (NYSE: CMG) issued a 50-for-1 divided connected June 26, 2024, making its past astir $3,000 stock terms much affordable. But that astir marked the peak. The banal is presently down 53% from its all-time high.

It wasn't the split, but alternatively weakening income show successful the concern itself that followed the departure of erstwhile CEO Brian Niccol. Here are 3 reasons Chipotle has fallen from its pedestal.

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1. Slowing gross maturation

Since 2024, Chipotle's gross maturation has declined amid inflationary costs and anemic comparable sales. When the institution issued its banal split, gross was up 18% twelvemonth implicit twelvemonth successful Q2 2024. Comp income grew 11%, with transaction maturation up 8.7%.

In May 2025, determination was a noticeable slowdown successful underlying concern trends amid weakening user sentiment. For the afloat year, gross grew conscionable 5% implicit 2024, with comp income declining by 1.7%.

2. Higher costs pressured margins

As income weakened, Chipotle faced higher costs for rent, labor, and nutrient ingredients. As a result, restaurant-level borderline fell from 26.7% successful 2024 to 25.4% successful 2025. The institution is inactive struggling to offset higher costs, with restaurant-level margins down to 23.7% successful the archetypal 4th of 2026.

Chipotle mightiness person compounded this occupation by lowering prices for immoderate items. It prioritized keeping postulation up astatine the disbursal of its bottommost line. Quarterly net peaked astatine $0.33 successful Q2 2024. In Q1 2026, the institution reported a 17% year-over-year alteration successful earnings, falling to $0.23.

3. Uncertainty from enactment alteration

Niccol took the CEO occupation astatine Starbucks successful September 2024. While Chipotle's weakening show is astir correlated with the broader weakness successful user spending, a alteration successful CEO ever creates uncertainty astir the future, which tin interaction a company's valuation.

There's a crushed Starbucks chose Niccol to pb its turnaround. Niccol proved to beryllium a superb concern relation astatine Chipotle. Under his enactment from 2018 done the 3rd 4th of 2024, Chipotle much than doubled its gross and doubled its operating nett margin. From the extremity of 2014 done Q3 2024, the banal returned 567%.

After the caller collapse, Chipotle banal is present trading astatine its lowest price-to-earnings ratio successful years. It could beryllium a large clip to buy, but clip volition archer whether the caller CEO, Scott Boatwright, is arsenic palmy arsenic Niccol. The latest results showed betterment successful top-line growth. Revenue grew 7.4% twelvemonth implicit year, with comp income up 0.5%.