CMG shares fell sharply as revenue growth slowed to 5% in 2025 and margins contracted due to higher costs and pricing pressure.
Chipotle Mexican Grill (NYSE: CMG) has declined 53% from its all-time high following a 50-for-1 stock split on June 26, 2024, when shares traded near $3,000. The drop reflects weakening sales performance, not the split itself, as revenue growth decelerated from 18% year-over-year in Q2 2024 to just 5% for the full year 2025.
Comparable sales turned negative in 2025, falling 1.7%, while transaction growth slowed. Restaurant-level margins contracted from 26.7% in 2024 to 23.7% in Q1 2026, pressured by higher labor, rent, and ingredient costs. Earnings per share dropped 17% year-over-year in Q1 2026, down from a peak of $0.33 in Q2 2024.
The company’s decision to lower prices on some items to sustain traffic further squeezed profitability, compounding margin pressures.