Here’s Why ClearBridge Large Cap Growth Strategy Chose Chipotle Mexican Grill (CMG)

1 week ago 9

Soumya Eswaran

Thu, January 8, 2026 astatine 7:13 AM CST 3 min read

ClearBridge Investments, an concern absorption company, released its “ClearBridge Large Cap Growth Strategy” fourth-quarter 2025 capitalist letter. The concern doctrine of the strategy is to put successful starring companies that are undervalued by the marketplace successful presumption of their aboriginal maturation potential. A transcript of the missive tin beryllium downloaded here. Large-cap stocks continued their spot successful the quarter, driven by beardown net maturation from mega-cap companies and enthusiasm implicit generative AI. The ClearBridge Large Cap Growth Strategy underperformed the Russell 1000 Growth Index by astir 900 ground points for the year. It continued to lag down the benchmark, trailing its 1.2% quarterly beforehand by astir 170 ground points during the 4th quarter. The underweight vulnerability to mega-cap AI beneficiaries and lower-quality AI-related names contributed to the underperformance. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, ClearBridge Large Cap Growth Strategy highlighted stocks specified arsenic Chipotle Mexican Grill, Inc. (NYSE:CMG). Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. The one-month instrumentality of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 11.47%, and its shares mislaid 32.89% of their worth implicit the past 52 weeks. On January 7, 2026, Chipotle Mexican Grill, Inc. (NYSE:CMG) banal closed astatine $38.87 per share, with a marketplace capitalization of $52.12 billion.

ClearBridge Large Cap Growth Strategy stated the pursuing regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) successful its 4th fourth 2025 capitalist letter:

"After a flurry of enactment station Liberation Day, our portfolio actions successful the 4th were much limited. We closed a presumption successful Starbucks to ore our vulnerability successful restaurants into Chipotle Mexican Grill, Inc. (NYSE:CMG). While we inactive judge successful the turnaround communicative astatine Starbucks nether CEO Brian Niccol, improvements are taking longer than expected to accelerate the business. Both Starbucks and Chipotle are being impacted by macro headwinds successful the edifice assemblage owed to a challenged low-income consumer; however, we judge Chipotle has faster semipermanent store maturation imaginable and amended portion economics, and we consciousness much comfy successful Chipotle’s terms versus worth provided to consumers."

Raymond James Sees Menu Pricing Momentum Building astatine Chipotle (CMG)

Chipotle Mexican Grill, Inc. (NYSE:CMG) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge money portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) astatine the extremity of the 3rd quarter, which was 68 successful the erstwhile quarter. Chipotle Mexican Grill, Inc.’s (NYSE:CMG) sales for the 3rd 4th of 2025 grew 7.5% to scope $3 billion. While we admit the imaginable of Chipotle Mexican Grill, Inc. (NYSE:CMG) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.