Restaurant Stock Can Rebound

Restaurant Stock Can Rebound by Emily Clark last updated on June 07, 2026

This Restaurant Stock Could Rebound

Chipotle Mexican Grill feeds 1.1 million people every day, which shows the scale of their operation. Despite being such a big name, Chipotle Mexican Grill (CMG) is down by 34% from its ATH.

The reason why the CMG stock is struggling is that the investors were worried about traffic softness. On top of that, there was also a worry that the management might fail to fix it.

Chipotle's Q1 Result Was Positive

However, the Q1 results have made it clear that the problems faced by CMG are fixable! In Q1, the total revenue of Chipotle Mexican Grill was $$3.09 billion with a 7.04% y/y increase.

The comparable restaurant sales also went up by 0.5% while the market was expecting a 0.7% decline. In addition, the restaurant transactions showed 0.6% growth, which is a sign that more people are now coming to the stores.

So, what helped Chipotle to turn things around? For starters, they relaunched the famous Chipotle Honey Chicken! This popular option was made available in the UK, the US, Canada, and other markets. The company also set a $0 delivery fee, which improved the overall sales.

The free delivery promotion was a classic marketing tactic to rebuild the digital ordering habits. At the same time, it allwoed the Chipotle to improve its international brand awareness.

The company has also opened around 49 new restaurants during Q1, and around 42 of them are built on a drive-through format.

However, we must also understand that Chipotle is still an expensive stock based on its P/E ratio. But buying the Chipotle stock means you are investing in their long-term unit growth story! If Chipotle can manage to keep its same-store sales positive in Q2, a big upside in the stock price will follow!

With all things considered, Chipotle stock is a very good option for those who want to get exposure to the retail and restaurant sector.