Chipotle Isn't Looking to Compete With McDonald's on Price, and Why That Could Be a Costly Mistake

2026-03-02 15:20:00 ET

Chipotle Mexican Grill (NYSE: CMG) stock has been struggling over the past year, falling by 33% in value. The fast-casual restaurant chain has normally been a stellar growth stock to own, but that hasn't been the case of late. Its growth rate has been slowing as consumers have been scoffing at its high-priced menu items.

Management, however, doesn't appear prepared to sacrifice margins in exchange for revenue growth. CEO Scott Boatwright isn't interested in offering a value or dollar menu option like McDonald's , and says that, "our food is worth, in my mind, every penny we ask someone to pay for it."

It's a controversial move and claim, particularly at a time when consumers are strapped for cash and looking for deals. And it could end up hurting the stock.

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