Why Chipotle Stock Slipped In March

By Brett Schafer – Apr 3, 2026 at 12:45PM ESTKey PointsChipotle stock fell along with discretionary stocks in March. The company has struggled in recent years with comparable store sales growth and traffic.Shares still trade at an expensive earnings ratio. Shares of Chipotle (CMG +1.62%) sank 14% in March, according to data from S&P Global Market Intelligence. Restaurants have gone through a rough patch over the last few years, and Chipotle is no exception. Now, investors are becoming bearish across the sector due to fears of rising gas prices and their impact on discretionary purchases, such as dining out. Here's why Chipotle stock fell in March, and whether it is worth buying the dip on for your portfolio today. ExpandNYSE: CMGChipotle Mexican GrillToday's Change(1.62%) $0.53Current Price$33.16Key Data PointsMarket Cap$43BDay's Range$31.82 - $33.3152wk Range$29.75 - $58.42Volume13MAvg Vol17MGross Margin22.35% Declining traffic, tightening consumer wallets Chipotle reported its fourth-quarter 2025 earnings before March, but its results are indicative of the bearish narrative forming around it and the broader restaurant sector, especially fast-casual stocks. Same-store sales dipped 2.5% year over year last quarter, leading to a compression of operating margin from 14.6% in Q4 the year prior to 14.1% in 2025. Both figures moving in the wrong direction indicate a lack of pricing power and the inability to retain traffic at Chipotle locations. Specific news around Chipotle did not shake the stock in March. However, investors are predicting how rising gas prices will filter through to the rest of the average American's consumer spending decisions. The bearish thought for restaurant chains is that if people are forced to spend more on gasoline each month, they will likely eat out less and cook cheaper meals at home. This sentiment is what has Chipotle stock falling again in March, along with many other consumer stocks. With Chipotle, investors are concerned about declining food quality, inconsistent portion sizes, and the loss of market share to fast-casual start-ups like Cava Group. The once king of restaurant growth stocks has now fallen back to earth. Image source: Getty Images. Time to buy the dip? The stock may be down, but that does not mean Chipotle is automatically cheap at today's prices. The company has over 4,000 restaurants and is slowly expanding worldwide, giving it a long runway for growth. If it can get its same-store sales growth back into positive territory, revenue should keep compounding for the foreseeable future. However, there is no reason to think this will happen for Chipotle. Traffic has been moving in the wrong direction for years, and despite the stock being down 50% from its highs, it still trades at a price-to-earnings ratio (P/E) of 29.5. This feels much too expensive an earnings ratio for a struggling restaurant concept. Avoid buying the dip on Chipotle stock right now. Read NextMar 27, 2026 •By Neil PatelDown 53%, This Beleaguered Stock Could Skyrocket Over the Next 5 Years for This ReasonMar 23, 2026 •By Neil PatelIf You'd Invested $1,000 in Chipotle Stock 10 Years Ago, Here's How Much You'd Have TodayMar 16, 2026 •By Sean WilliamsBillionaire Dan Loeb Slashed Third Point's Stake in Amazon and Piled Into This Consumer-Facing Stock That's Gained 3,750% Since Its IPOMar 15, 2026 •By Dave KovaleskiIs Chipotle Stock a Long-Term Buy?Mar 11, 2026 •By Jeremy BowmanBest Small-Cap Stocks to Buy in 2026: Are They Right for Your Portfolio?Mar 9, 2026 •By Daniel SparksChipotle Stock: Down More Than 40% From Its 52-Week High, Is It Time to Buy?About the AuthorBrett Schafer is a contributing Motley Fool stock market analyst covering consumer goods, financials, technology, and industrials. Brett is a self-taught investor and has hosted the Chit Chat Stocks podcast since 2018. He previously worked as a lab engineer for science laboratories. He holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His lab work on Major League Baseball’s juiced ball problem was featured in The Wall Street Journal and other national outlets.TMFBrettSchaferX@CCM_BrettStocks MentionedChipotle Mexican GrillNYSE: CMG$33.16(+1.62%)+$0.53Cava GroupNYSE: CAVA$79.49(-0.81%)-$0.65*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.