Chipotle Mexican Grill (CMG): A Top Food Stock Pick for Hedge Funds

Insider Monkey11-21 01:29

We recently published a list of 10 Best Food Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Chipotle Mexican Grill, Inc. (NYSE:CMG) stands against other ...

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In this article, we are going to take a look at where Chipotle Mexican Grill, Inc. (NYSE:CMG) stands against other ...</p>\n\n<a href=\"https://finance.yahoo.com/news/chipotle-mexican-grill-cmg-top-172955414.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4209","symbol_name":"餐馆","start_time":0,"source_url":"https://finance.yahoo.com/news/chipotle-mexican-grill-cmg-top-172955414.html","article_id":"2485128910","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/p.ScUNusLw9R5q6cH4kH5g--~B/aD04MTY7dz0xNDU2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/b81a859b45533ff4280a6d306633720c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485128910","pubTimestamp":1732123795,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We recently published a list of 10 Best Food Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Chipotle Mexican Grill, Inc.  stands against other best food stocks to buy according to hedge funds.The food industry covers a wide range of businesses, including grocery stores, manufacturers, and non-alcoholic beverage companies. Many food-related stocks are classified as consumer staples, making them relatively resilient to economic downturns.The food sector is among the world’s steadily growing industries. A report by Fortune Business Insights revealed that the global foodservice market was valued at $3.24 trillion in 2023 and is projected to nearly double to $6.35 trillion by 2032. This growth reflects a compound annual growth rate  of over 7.5%.“We have started to see prices stabilize — they’re still 30% higher than 2019, but they’ve stabilized, and we’re not seeing the month-over-month double-digit increases. That is helping fuel what we thin","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4209":"餐馆","LU2065171311.SGD":"M&G (LUX) GLOBAL MAXIMA \"A\" (SGD) ACC","CMG":"墨式烧烤","LU1267930730.SGD":"富兰克林美国机遇基金AS Acc SGD (CPF)","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU2065171402.SGD":"M&G (LUX) GLOBAL MAXIMA \"A\" (SGD) INC","SGXZ99366536.SGD":"United Global Innovation A Acc SGD-H","LU2108987350.USD":"UBS (LUX) EQUITY SICAV GLOBAL OPPORTUNITY SUSTAINABLE (USD) \"P\" (USD) ACC","CAGR":"California Grapes International, Inc.","SGXZ81514606.USD":"大华环球创新基金A Acc USD","SGXZ51526630.SGD":"大华环球创新基金A Acc SGD","BK4585":"ETF&股票定投概念","LU2065170008.USD":"M&G (LUX) GLOBAL MAXIMA \"A\" (USD) INC","BK4159":"经销商","LU2065169927.USD":"M&G (LUX) GLOBAL MAXIMA \"A\" (USD) ACC","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4588":"碎股","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","BK4504":"桥水持仓"},"translate_title":"Chipotle Mexican Grill(CMG)：对冲基金首选食品股","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAGR":1,"CMG":1},"content_text":"We recently published a list of 10 Best Food Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Chipotle Mexican Grill, Inc. (NYSE:CMG) stands against other best food stocks to buy according to hedge funds.\nThe food industry covers a wide range of businesses, including grocery stores, manufacturers, and non-alcoholic beverage companies. Many food-related stocks are classified as consumer staples, making them relatively resilient to economic downturns.\nThe food sector is among the world’s steadily growing industries. A report by Fortune Business Insights revealed that the global foodservice market was valued at $3.24 trillion in 2023 and is projected to nearly double to $6.35 trillion by 2032. This growth reflects a compound annual growth rate (CAGR) of over 7.5%.\nThe United States is a major player in this market, with its food service sector projected to reach $1.77 trillion by 2030. This significant growth can be attributed to the increasing popularity of fast food chains and a growing consumer appetite for convenient, on-the-go meals.\nEmerging Trends in the Food Sector\nAutomation and digitalization are shaping the food industry in 2024, particularly in the restaurant and retail sectors. Due to labor shortages, a strategic approach to scalability in this industry involves a combination of human workforce and automation. With ongoing challenges like workforce gaps and inflation, these sectors are relying more on solutions such as self-checkout systems and AI-driven recommendations.\nUpskilling initiatives, data-driven insights, and automation are helping businesses in the food industry improve efficiency and drive growth. The food industry automation market is expected to grow significantly, with projections estimating its value to reach $113.9 billion by 2031, reflecting a compound annual growth rate of 11%.\nCompanies in the food industry are also adjusting to changing consumer preferences by offering more healthy options and expanding into new markets. They’ve responded to the rise in demand for plant-based and organic products by introducing innovative new items to meet these evolving tastes.\nREAD ALSO: 7 Best Organic Food and Farming Stocks to Buy and 15 Largest Food Companies in the World by Market Cap.\nFood Sector’s Resilience: Why It Remains a Strong Investment Choice?\nDespite the potential challenge posed by the rise of weight-loss drugs, analysts remain confident in the long-term prospects of food companies. The food sector is considered a stable and dependable investment due to its consistent demand and resilience during economic downturns.\nSally Lyons Wyatt, a global EVP and Chief Advisor overseeing consumer goods and food service insights at Circana explained:\n\n“We have started to see prices stabilize — they’re still 30% higher than 2019, but they’ve stabilized, and we’re not seeing the month-over-month double-digit increases. That is helping fuel what we think will be a bit of a rebound on volume — about a 1% increase on volume for food.”\n\nOverall, the food industry has navigated recent economic challenges by implementing strong pricing strategies and maintaining solid brand loyalty. Investments in manufacturing and expanding product portfolios have also set these companies up for future growth. Moreover, the increasing global population presents a significant opportunity for further industry expansion. The Food & Beverage Select Industry Index returned nearly 5% since the start of 2024 and in the past 12 months, it delivered a nearly 12% return to shareholders.\nOur Methodology\nTo narrow down the 10 best food stocks to buy according to hedge funds, we used Finviz and Yahoo Finance screeners to create a list of top food companies. From there, we selected the 10 stocks with the highest number of hedge fund investors, based on Insider Monkey’s database of over 900 prominent hedge funds as of Q3 2024. The best food stocks have been ranked in ascending order of the number of hedge funds holding stakes in them.\nWhy are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).\n A chef plating up a wide variety of dishes for a restaurant chain. \nChipotle Mexican Grill, Inc. (NYSE:CMG)\nNumber of Hedge Fund Holders: 69\nChipotle Mexican Grill, Inc. (NYSE:CMG) is a popular fast-casual restaurant chain known for its customizable burritos, bowls, quesadillas, tacos, and salads. The chain offers convenient dining options, including in-store dining, takeout, and delivery services across different locations in various countries. CMG ranks fourth on our list of the best food stocks.\nThe company’s focus on high-quality, affordable Mexican food, coupled with its efficient operations, has driven sales growth by 13% during Q3 2024 to reach $2.8 billion. Chipotle Mexican Grill, Inc.’s (NYSE:CMG) marketing initiatives including the relaunch of its smoked brisket and improvement in its Net Promoter Score have led to higher foot traffic and growing order amount. This has driven positive analyst sentiments towards the stock.\nGoing forward, Chipotle Mexican Grill, Inc. (NYSE:CMG)’s aggressive expansion plans, including the addition of 280 to 315 new restaurants this year and the expansion of its digital offerings at these locations, are expected to fuel future growth. Besides this, the company anticipates mid-to-high single-digit comparable sales growth for the full year of 2024.\nHere’s what Pershing Square Holdings said about Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q2 2024 investor letter:\n\n“On August 13th, Chipotle Mexican Grill, Inc. (NYSE:CMG) announced that CEO Brian Niccol would be leaving the company to become the CEO of Starbucks. Brian has led a superb turnaround at Chipotle, which has put the company firmly on the path of sustainable long-term growth. While we are disappointed to see Brian go, one of the measures of a great CEO is the company that he leaves behind. Brian has built an extraordinary team at Chipotle that we expect will not lose a step in his departure. We are grateful to Brian for the extraordinary value he has created for CMG shareholders and Pershing Square.\nChipotle delivered outstanding results in the first half of 2024 as the brand’s industry-leading value proposition of fresh food, customization, and convenience at fair prices continues to resonate with customers. During the second quarter, same-store sales grew an impressive 11%, or 55% from 2019 levels. Successful marketing, including the return of the fan-favorite Chicken Al Pastor limited time offering, and faster throughput drove transaction growth of over 8%, with gains across all income cohorts. Although sales growth has moderated in the summer amid a broader deceleration in the restaurant industry, Chipotle continues to gain share. The launch of Smoked Brisket for a limited time starting in September, one of the company’s most requested menu items, should further improve trends….” (Click here to read the full text)\n\nOverall, CMG ranks 4th on our list of best food stocks to buy according to hedge funds. While we acknowledge the potential of food companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CMG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.\nREAD NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.\nDisclosure: None. This article is originally published at Insider Monkey.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485128910"}