Top 10 Stocks to Buy According to Sustainable Insight Capital Management

5. 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 5^th 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.”