We recently published a list of Top 10 Stocks to Buy According to Sustainable Insight Capital Management. In this article, we are going to take a look at where Chipotle Mexican Grill, Inc. (NYSE:CMG) stands against other top stocks to buy according to sustainable insight capital management.
Sustainable Insight Capital Management (SICM) focuses on institutional investments, offering both long-only and long-short strategies in public equities. Established by an experienced leadership team with deep institutional knowledge, the hedge fund is committed to providing investment solutions that emphasize sustainability. As of the fourth quarter of 2024, SICM reported managing nearly $228.52 million in 13F securities, with its top 10 holdings making up 56.36% of its portfolio.
Kevin Edward Parker is the founder and Chief Executive Officer of Sustainable Insight Capital Management LLC, which he established in 2013. He also founded Sustainable Insight Capital Management (UK) Ltd. that same year and serves as its CEO as well. Parker earned his undergraduate degree from New York University in 1981. With over 30 years of experience on Wall Street, he has built a distinguished career in investment management and financial leadership. Before launching SICM, Kevin Parker played a key role at Deutsche Bank, where he was a member of the Group Executive Committee from 2001 to 2004 and led its asset management division as Global Head from 2004 to 2012. His extensive expertise in sustainable investing and institutional asset management has positioned SICM as a leader in responsible investment strategies.
Beyond his work at SICM, Parker holds several leadership positions in various organizations. Since 2004, he has also served as Vice Chairman of the New York Police & Fire Widow’s & Children’s Benefit Fund. Additionally, he has been an Independent Director at The Westaim Corporation since 2020, an Independent Non-Executive Director at United Co. RUSAL International PJSC since 2019, and a Director at both Next Jump, Inc. and Westaim Arena Holdings II LLC since 2016. His previous roles include Chairman of the Management Board at DWS International GmbH from 2011 to 2012 and a Director at the Sustainability Accounting Standards Board from 2014 to 2018. He has also held leadership positions at Agri. Capital Group SA, DB Climate Change Advisors, and Green Partners Technology Holdings GmbH.
Our Methodology
The stocks discussed below were picked from Sustainable Insight Capital Management’s Q4 2024 13F filings. They are compiled in the ascending order of Sustainable Insight Capital Management’s stake in them as of the fourth quarter of 2024. In order to assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A chef plating up a wide variety of dishes for a restaurant chain.
Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders as of Q4: 83
SICM’s Equity Stake: $13.63 Million
Chipotle Mexican Grill, Inc. (NYSE:CMG), commonly known as Chipotle, is a U.S.-based fast-casual restaurant chain specializing in made-to-order bowls, tacos, and burritos. As of mid-2024, the company operates 3,500 locations in six countries.
Over the years, Chipotle Mexican Grill, Inc. (NYSE:CMG) has continued to grow, surpassing 2,000 locations by 2015 with a workforce of over 45,000 employees. In 2018, the company relocated its corporate headquarters from Denver to Newport Beach, California, marking a new chapter in its expansion. Known for its commitment to fresh, high-quality ingredients and customizable meals, Chipotle remains a leader in the fast-casual dining space. Its strong brand recognition and steady expansion make it an appealing investment for those seeking growth in the restaurant industry.
Chipotle Mexican Grill, Inc. (NYSE:CMG) posted strong financial results for the quarter ending December 2024, reporting $2.85 billion in revenue, which reflected a 13% year-over-year increase. Additionally, the company reported earnings per share (EPS) of $0.25, fulfilling analyst projections, and emphasizing its steady growth and strong market position.
Sustainable Insight Capital Management owned 226,083 shares of the company as of Q4 2024, with a total value of over $13.63 million, making it the stock with the 5th largest stake in Parker’s portfolio. Moreover, the fund increased its stake in the company by 157% during the fourth quarter of 2024, from 88,300 shares by the end of Q3. By the end of the fourth quarter, 83 funds tracked by Insider Monkey held stakes in Chipotle Mexican Grill, Inc. (NYSE:CMG) worth over $2.04 billion, up from 69 funds by the end of Q3.
ClearBridge Growth Strategy stated the following regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q4 2024 investor letter:
“We also initiated a position in fast casual restaurant chain Chipotle Mexican Grill, Inc. (NYSE:CMG). The recent pullback in shares related to a moderation in industry-wide restaurant sales and CEO Brian Niccol’s August departure created an attractive entry point into a company with industry-leading unit economics in a still underpenetrated market. Chipotle plans to double its store footprint over time while executing initiatives to increase volume growth through technology enhancements, reduced mobile order friction and higher production during peak hours. Better throughput, technological integration and improved mix should help to drive continued margin expansion. Chipotle further diversifies the portfolio, adding to consumer discretionary where we have historically had less exposure.”
Overall, CMG ranks 5th on our list of top stocks to buy according to sustainable insight capital management. While we acknowledge the potential for CMG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CMG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
