Wells Fargo’s Best Growth Stocks: 28 Stocks With The Highest Consensus EPS Growth Estimates

21. Chipotle Mexican Grill, Inc. (NYSE:CMG)

Consensus Long-Term EPS Growth Estimate: 12%

Number of Hedge Fund Holders: 68

Chipotle Mexican Grill, Inc. (NYSE:CMG) is an American fast-food restaurant chain that sells Mexican food items such as burritos and tacos. This makes it a consumer cyclical stock that fluctuates in tune with the economy. As a result, Chipotle Mexican Grill, Inc. (NYSE:CMG)’s narrative depends on its same-store sales, which have benefited in 2024 from the firm’s brand presence. Additionally, the restaurant chain has also been able to use its brand image to offset the impact of higher prices which have somewhat been forced on it because of inflation and other factors like labor laws. Brand loyalty saw Chipotle Mexican Grill, Inc. (NYSE:CMG) raise its 2024 sales guidance in April and beat analyst revenue and earnings estimates for its second-quarter results. Therefore, the firm’s narrative now depends on its ability to control costs and execute its strategy of opening at least 315 and as many as 345 restaurants in 2025 along with expanding digital sales.

Artisan Partners mentioned Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q2 2024 investor letter. Here is what the fund said:

“Notable trims in the quarter included Chipotle Mexican Grill, Inc. (NYSE:CMG) and Arista Networks. Chipotle is currently expanding its store count at a growth rate of 8%–10% annually, which is supported by attractive store-level economics. At the same time, execution within these stores is strengthening due to increased accessibility and convenience, which is resulting in higher productivity during peak times. While the profit cycle remains nicely in motion, we trimmed the position due to our valuation discipline and its market cap outgrowing our mid-cap mandate.”