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Investors are increasingly seeking safe havens amid a turbulent market, with fears of a potential stock market crash pushing many to reconsider their portfolios. While the Magnificent 7 have dominated headlines for years, their premium valuations and lofty earnings estimates leave room for caution. A recent report from Leuthold Group suggests that stocks with a lower beta may fare better during uncertain times.

Among the given list, Chipotle Mexican Grill (CMG) stands out, celebrating its strong same-store sales and creative menu additions. The brand continues to resonate with consumers thanks to its solid reputation and highly efficient digital ordering system. Where traditional tech stocks face mounting headwinds from tariffs, inflation, and economic uncertainty, Chipotle’s resilience offers a refreshing alternative.

About Chipotle Stock

Chipotle Mexican Grill (CMG) is an American fast-casual chain specializing in fresh Mexican cuisine. With a focused menu featuring burritos, tacos, and burrito bowls, Chipotle emphasizes quality ingredients and sustainability, operating over 3,700 restaurants in the United States, Canada, France, Germany, Dubai, and the United Kingdom. The company currently has a market cap of around $69 billion.

After enjoying a strong rally in the latter half of 2024, Chipotle shares have pulled back sharply in 2025 alongside the broader market, now down over 17% year to date. Over the long run, however, CMG remains one of the best performers in the consumer sector, up more than 300% over the past five years.

In terms of valuation, Chipotle currently trades at a forward P/E of about 39x, which is near its lowest valuation in the past three years.

Chipotle Beats Q4 Earnings Estimates

On Feb. 4, the restaurant giant reported strong Q4 earnings, but investor confidence took a hit despite earnings beating estimates. The stock fell about 4% on a weak same-store sales forecast.

Chipotle delivered solid numbers, with revenue reaching $2.85 billion, up 13% year over year. Same-store sales rose 5.4%, narrowly missing StreetAccount’s estimate of 5.7%. Digital sales remain a key driver, now making up 34% of food and beverage revenue.

On the profitability front, Q4 net income climbed to $331.8 million, or $0.25 per share, up from $282.1 million, or $0.20, a year earlier.

“We believe our dual focus on expanding our physical footprint and enhancing our digital capabilities positions us well for sustained growth, even in a volatile market,” said CEO Scott Boatwright during the earnings conference. 

Management anticipates low- to mid-single-digit same-store sales growth for 2025. Chipotle plans to open between 315 and 345 new locations in 2025, with over 80% featuring Chipotle Lane for digital orders. This supports Boatwright’s long-term goal of reaching 7,000 U.S. restaurants and continuing global expansion.

What Do Analysts Say About Chipotle Stock?

Morgan Stanley recently upgraded Chipotle from “Equal Weight” to “Overweight,” raising its price target from $65 to $70, implying nearly 40% upside.

Analyst Brian Harbour points to significant expansion potential, noting that Chipotle can grow its U.S. restaurant base by 8% to 10% annually while its international footprint remains largely untapped, with only 85 locations outside the U.S. Harbour considers the current sales weakness a temporary setback that should ease after Q2 as management leverages appealing products, strong marketing, and efficient throughput. Additionally, the company’s embrace of automation is expected to drive cost savings and further boost sales.

Overall, Wall Street is highly optimistic about CMG's stock prospects. The group of 31 analysts gave its stock a consensus “Strong Buy” rating, with a split of 21 “Strong Buy,” three “Moderate Buy,” and seven “Hold.” 

The average mean price target given by analysts is $65.87, which presents around 31% upside premium over current levels.