Don’t Call It a Comeback
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 10 December 2025
⏱️ 21 minutes
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| 0:00.0 | Some of the best known stocks of the last decade have fallen in 2025. |
| 0:10.0 | Can they make a comeback? |
| 0:11.5 | Motley Fool Money starts now. |
| 0:20.7 | Welcome to Motley Fool Money. I'm Travis Hoym, joined today by John Quast and Rachel Warren. |
| 0:25.8 | And today we want to talk about comebacks and potential comebacks to some really well-known |
| 0:30.1 | companies, Chipotle, Target, Crocs. Those are the three that are going to be on the tip of our |
| 0:35.1 | tongue today. But there's a number of companies that kind of fall into this category. Chipoli stock, John, has fallen 51% from its |
| 0:42.4 | high in 2024. Same store sales have gone negative. This is one of those companies that |
| 0:47.1 | sort of seemed indestructible since the whole E. coli thing early in the 2010s. But things have really turned over the past year. So has something |
| 0:57.2 | changed? And I also want to note that the valuation is something that we should talk about because |
| 1:01.6 | this is a company that is very well known, always been very highly valued, but it still trades for |
| 1:06.3 | 30 times earning. So is this the kind of stock that you're looking at, hey, you know what? Maybe this |
| 1:10.6 | is a |
| 1:11.0 | stock to come back in 2026, or is it still a little too uncertain? It's a good question, Travis. |
| 1:18.0 | And let's just start by saying that over the long term, stock price is correlated with profits. |
| 1:24.4 | And so Chipotle's profits are somewhat okay right now, but investors clearly believe |
| 1:30.3 | that they're headed lower in coming years. And so that's why this stock has fallen as much |
| 1:35.9 | as it has. I think there's some credence to the fear that Chipotle's profits could fall. So there's |
| 1:42.5 | a little trend emerging. If you look over the last |
| 1:44.6 | three quarters, Chipotle's opened about 200 new locations. Average unit volumes have dropped |
| 1:50.9 | about 3% over that time. And that's actually pretty rare for Chipotle. Those average unit volumes, |
| 1:56.2 | the sales per location per year, have gone up consistently over the last 20 years, let's say. And lower |
... |
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