ClearBridge Large Cap Growth Strategy has initiated a position in Chipotle Mexican Grill (CMG), citing strong operational execution and consistent financial performance. The move underscores confidence in CMG's ability to sustain long-term growth despite macroeconomic headwinds.
- ClearBridge Large Cap Growth Strategy initiated a position in Chipotle Mexican Grill (CMG)
- CMG achieved $3.8B in fiscal 2025 revenue, up 7.2% YoY
- Same-store sales increased 6.9% in 2025
- Adjusted EBITDA margins held steady at 24.3%
- 30 new international locations planned by end-2026
- Ongoing investments in AI and digital infrastructure
The ClearBridge Large Cap Growth Strategy has entered a new position in Chipotle Mexican Grill (CMG), reflecting a strategic allocation based on the company’s disciplined capital deployment and resilient business model. This addition aligns with the fund’s focus on high-quality, scalable enterprises with durable competitive advantages and consistent cash flow generation. Chipotle reported fiscal year 2025 revenue of $3.8 billion, representing a 7.2% increase year-over-year. Same-store sales grew by 6.9%, driven by strong customer traffic and an effective digital engagement strategy. The company maintained adjusted EBITDA margins at 24.3%, demonstrating robust cost control even amid rising labor and commodity costs. These metrics highlight CMG’s pricing power and operational efficiency. In addition to financial strength, ClearBridge cited Chipotle’s accelerated international expansion—particularly in Canada and Mexico—as a key catalyst. The company plans to open 30 new locations in those markets by end-2026, bolstering long-term top-line potential. The fund also notes CMG’s ongoing investment in technology, including AI-powered kitchen optimization tools and enhanced mobile ordering features, which are expected to drive incremental margin improvement. The inclusion of CMG in the strategy’s portfolio reflects broader confidence in consumer-facing businesses that balance growth and profitability. Investors are increasingly favoring companies with predictable earnings and clear paths to reinvestment, positioning CMG as a core holding within the fund’s large-cap growth segment.