ClearBridge Investments released its “ClearBridge Large Cap Growth Strategy” fourth-quarter 2025 investor letter, underperforming the Russell 1000 Growth Index by 900 basis points for the year. Chipotle Mexican Grill, Inc. (NYSE: CMG) was highlighted, with a one-month return of 11.47% and a market capitalization of $52.12 billion on January 7, 2026.

In the investor letter, ClearBridge Large Cap Growth Strategy discussed closing a position in Starbucks to focus on Chipotle Mexican Grill, Inc. (NYSE: CMG). Both companies are facing challenges from macro headwinds in the restaurant sector, but ClearBridge sees faster long-term store growth potential and better unit economics in Chipotle.

Despite Chipotle Mexican Grill, Inc. (NYSE: CMG) not being among the 30 most popular stocks among hedge funds, its sales for the third quarter of 2025 grew by 7.5% to $3 billion. While acknowledging Chipotle’s potential, some AI stocks are seen as offering greater upside potential and lower downside risk by ClearBridge Investments.

Read more at Yahoo Finance: Here’s Why ClearBridge Large Cap Growth Strategy Chose Chipotle Mexican Grill (CMG)