3 Reasons Why Chipotle Is Down 53% Since Its 50-for-1 Stock Split

Chipotle (CMG) has collapsed 53% from its all-time high reached after its June 2024 50-for-1 stock split, pressured by deteriorating fundamentals and a CEO transition. The burrito chain's revenue growth decelerated sharply from 18% year-over-year in Q2 2024 to just 5% for full year 2025, while restaurant-level operating margins compressed from 26.7% to 23.7% as inflation hit labor, rent, and food costs.

The company shifted strategy to prioritize customer traffic over pricing power, cutting prices to drive foot traffic. That pivot backfired: Q1 2026 earnings dropped 17% year-over-year as the margin squeeze intensified. Adding to investor uncertainty, CEO Brian Niccol departed for Starbucks, leaving leadership in flux during a critical period of operational stress.

The stock split, typically a bullish signal reflecting management confidence, has proven a high-water mark rather than a springboard. CMG now trades at half its post-split peak as the growth story unravels and cost pressures mount.