Chipotle Falls 40% From 52-Week High After Q4 Sales Drop; Cramer Calls Buy
Chipotle's comparable sales dropped 2.5% in Q4 2025, pushing its stock over 40% below its 52-week high as CEO Scott Boatwright rejects a value menu strategy. Jim Cramer says it trades at 30 times earnings and declared he wants to buy shares now.
1. Q4 2025 Sales Decline
In the fourth quarter of 2025, Chipotle's comparable restaurant sales fell 2.5%, marking the first sales contraction in several periods as customers faced higher meal and fuel costs.
2. CEO Rejects Value Menu
CEO Scott Boatwright stated the company will not introduce a value menu to match low-priced competitors like McDonald’s, focusing instead on maintaining premium pricing and core menu quality.
3. Stock Performance Drop
Following the sales decline and lack of a value menu strategy, Chipotle's shares have slid over 40% from their 52-week high, underperforming other fast-casual peers.
4. Cramer Endorses Buying
Jim Cramer highlighted that Chipotle trades at about 30 times earnings and indicated he aims to buy the stock at current levels, citing confidence in management’s turnaround efforts.