Fast-casual Mexican chain Chipotle (CMG 1.55%) reported its quarterly financials in July, and the report was a stunner -- not in a good way. The perennial winner in restaurant dining saw a sudden collapse in customer traffic and same-store restaurant sales growth, which hurt the company's profitability.
CMG's loyalty base hit 20 million, with new promotions boosting engagement as comps struggle in 2025.
Some Chipotle customers will soon get to choose between meals delivered by land or air. The Mexican fast casual restaurant announced Thursday (Aug. 21) that it was teaming with autonomous delivery company Zipline to fly customers' digital orders to locations in the greater Dallas area.
Chipotle is teaming up with drone delivery leader Zipline for a pilot of autonomous food delivery. Starting Thursday, select customers in the greater Dallas area will have the option to use so-called Zipotle delivery through its early access program in the Zipline app.
A notable restaurant duo, Chipotle Mexican Grill CMG and CAVA Group CAVA, both faced pressure following the release of their quarterly results, adding fuel to the already-poor share performance from each in 2025.
CMG is banking on new hits like Honey Chicken and Adobo Ranch to revive comp sales after a sluggish start to 2025.
Zacks.com users have recently been watching Chipotle (CMG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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CMG targets peak-hour bottlenecks with a high-efficiency equipment rollout across more than 100 locations by the end of 2025.
The S&P 500 (SNPINDEX: ^GSPC) bull market is still intact, and the index has historically moved higher in August, returning an average of 0.6% during the month since 1928, according to Yardeni Research. Of course, a long-term mindset is the surest path to success in the stock market, but there is no harm in leaning into historical trends.
Despite a recent 17% stock decline due to weaker-than-expected Q2 results, Chipotle's fundamentals remain strong, with a long runway for sustained high returns on invested capital and margin expansion. Unlike franchised peers (e.g., McDonald's, Domino's), Chipotle's company-owned model ensures consistent quality, customer experience, and brand integrity, contributing to strong customer loyalty and pricing power. Chipotle delivers a high-quality, customizable product at a competitive price, reinforced by consistent portions and social media engagement.
Recently, Zacks.com users have been paying close attention to Chipotle (CMG). This makes it worthwhile to examine what the stock has in store.