PQUS0.260%
as of Jul 21
CMG
GrowthCHIPOTLE MEXICAN GRILL INC.
Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages, such as burritos, burrito bowls, quesadillas, tacos, and salads, as well as kids's meals, chips, and sides. It offers Mexican-inspired meals using responsibly sourced meats, such as chicken, beef, and pork branded as Responsibly Raised.
Close · 3M
-6.12%
Held by 1 AI ETF
Signal performance
Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.
Buy signals4
Win rate50% (2/4)
Avg buy return-1.29%
PQUS · Weight decrease · 2d
CMG's PER of 30.43 and PBR of 17.28 suggest a valuation that PQUS's AI ranking system, managing a US large-cap universe with measured turnover, may scrutinize for sustainability, even with the company's 48.45% ROE and 5.67% revenue growth. The consecutive weight decrease in PQUS for CMG on July 17th and 18th, 2026, followed a recent 30-day price return of 22.2% for the stock. This rebalancing by Pictet Asset Management's AI, overseeing a portfolio of approximately 165 US large caps, implies that CMG's upward price momentum, occurring while trading at 61% of its 52-week high, did not sufficiently enhance its relative rank given the fund's layered sector-balance and concentration rules.
weight 0.330% → 0.250% (-0.080 pp)·stock up 5.6% in the 30 days before
Jul 18·entry $33.13·now $33.13
0.00%
since Jul 18
PQUS · Weight increase · 2d
CMG currently trades at $35.25, placing it at 61% of its 52-week high and reflecting a 36.0% decline over the past year, though it posted an 8.7% gain in the last 30 days. This recent price action, particularly the rebound from its 52-week lows, likely prompted Pictet's AI ranking system to identify a potential value inflection point for the Consumer Discretionary stock. The AI's algorithm, processing US large-cap universe data, would have weighed this price context against CMG's financials, including its 48.45% return on equity and 5.67% revenue growth. Consequently, as part of a periodic rebalance, the AI-managed PQUS fund increased CMG's weight from 0.30% to 0.32% over two consecutive days (July 11th and 12th), aligning with its sector-balance and concentration rules. This measured adjustment reflects the AI's updated perception of CMG's relative attractiveness at this price level within the overall portfolio.
weight 0.300% → 0.320% (+0.020 pp)·stock up 18.0% in the 30 days before
Jul 12·entry $36.63·now $33.13Fresh
-9.56%
since Jul 12
PQUS · Weight increase · 2d
Following a brief dip and subsequent recovery to 0.29%, PQUS demonstrated a measured, daily increase in its allocation to CMG, moving from 0.29% to 0.31% over three consecutive days. This gradual accumulation aligns with the fund's US large-cap strategy, which emphasizes measured turnover and periodic rebalancing, rather than daily overhauls. The AI ranking system within PQUS likely identified CMG's 48.45% return on equity and 5.67% revenue growth as fundamental strengths, despite the stock trading at $33.34, which is 57% of its 52-week high and reflects a one-year return of -33.6%. Such a calculated reweighting suggests the AI system is incrementally adjusting its exposure to a quality name at a potentially more attractive price point within its established sector-balance and concentration rules.
weight 0.290% → 0.310% (+0.020 pp)·stock up 2.0% in the 30 days before
Jun 28·entry $32.97·now $33.13Fresh
+0.49%
since Jun 28
PQUS · New entry · 1d
weight 0 → 0.100% (new)·stock down 3.4% in the 30 days before
May 29·entry $31.86·now $33.13Drifting
+3.99%
since May 29
LQAI · Exit · 1d
The AI ETF likely divested CMG due to its extremely high valuation metrics such as PER and PBR, which appeared stretched relative to its moderate revenue growth, despite the company's strong profitability. The gradual reduction in weight before the final removal suggests a systematic rebalancing based on an evolving risk-reward assessment. For retail investors, this highlights the importance of balancing fundamental strength with reasonable valuation; even a highly profitable company can be considered overvalued by systematic investment strategies.
weight 0.600% → 0 (exited)·stock down 5.6% in the 30 days before
May 12·entry $32.67·now $33.13
+1.41%
since May 12
LQAI · Weight decrease · 2d
The AI likely reduced CMG's weight due to its high valuation multiples (PER 28.95, PBR 17.28) which appear less justified by its moderate 5.67% revenue growth, despite strong ROE. This consecutive decrease suggests the AI perceives increasing risk of overvaluation or slowing momentum in the consumer discretionary stock. Retail investors should critically assess if the stock's current premium valuation is sustainable, especially when an AI fund is systematically de-risking its position.
weight 0.650% → 0.600% (-0.050 pp)·stock down 6.4% in the 30 days before
May 11·entry $31.92·now $33.13
+3.79%
since May 11
LQAI · Weight decrease · 2d
The AI ETF likely reduced CMG's weight due to its extremely high valuation multiples, such as a PBR of 17.28, which may no longer be justified by its moderate 5.41% revenue growth, signaling a potential overvaluation. For retail investors, this suggests carefully re-evaluating whether CMG's future growth prospects can sustain its premium price, or if alternative investments offer more attractive risk-adjusted returns.
weight 0.680% → 0.630% (-0.050 pp)·stock down 3.6% in the 30 days before
May 4·entry $31.98·now $33.13
+3.60%
since May 4
LQAI · Weight decrease · 2d
The AI ETF likely initiated consecutive weight decreases in CMG due to its stretched valuation multiples (PER 28.75, PBR 17.28), which appear disproportionate to its 5.41% revenue growth despite strong ROE. This suggests the algorithm is systematically de-risking from a potentially overvalued position or reallocating to more attractive opportunities. For retail investors, this serves as a practical reminder to thoroughly evaluate a company's valuation alongside its profitability and growth, as even a fundamentally strong stock can become too expensive and invite professional rebalancing away from it.
weight 0.690% → 0.670% (-0.020 pp)·stock up 6.5% in the 30 days before
Apr 28·entry $32.87·now $33.13
+0.79%
since Apr 28
QRFT · Exit · 1d
The AI likely removed CMG due to its exceptionally high PBR of 17.28 and elevated PER of 26.62, which might be considered an unsustainable valuation given its moderate 5.41% revenue growth. For a retail investor, this highlights the importance of scrutinizing high valuation metrics against actual growth rates, as AI models prioritize disciplined risk management over sentiment for even profitable companies.
weight 0.100% → 0 (exited)·stock down 3.6% in the 30 days before
May 4·entry $31.98·now $33.13
+3.60%
since May 4
QRFT · New entry · 1d
weight 0 → 0.110% (new)·stock down 9.7% in the 30 days before
Apr 2·entry $33.16·now $33.13Fresh
-0.09%
since Apr 2
AIEQ · Exit · 1d
The AI ETF likely removed CMG due to its high valuation, evidenced by a PER of 27.97 and PBR of 17.28, which appeared stretched relative to its modest 5.41% revenue growth despite strong ROE. For retail investors, this highlights the critical need to ensure a stock's premium valuation is thoroughly justified by robust growth prospects, not just current profitability, to avoid overpaying.
weight 0.320% → 0 (exited)·stock up 1.1% in the 30 days before
May 3·entry $31.98·now $33.13
+3.60%
since May 3
Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.
Buffett-style framework
Fails the frameworkas of Jun 28
The AI ETF PQUS is increasing its weight in Chipotle, signaling a positive outlook and accumulation of the stock. This move contrasts with the value-investing framework's verdict, which identifies significant concerns regarding the company's financial health data and current valuation.
- Circle of CompetenceThe restaurant business model for an established fast-casual chain like Chipotle allows for reasonably predictable unit economics and future cash flow projections.
- Economic MoatChipotle possesses a strong brand reputation and loyal customer base, providing a durable competitive advantage within the fast-casual dining segment.
- ManagementThe provided data does not offer sufficient information to assess management's candor, capital allocation discipline, or ownership stake.
- Financial HealthWhile the reported ROE is strong, the absence of a 10-year ROE history, operating margin trends, detailed debt information, and owner earnings prevents a comprehensive assessment against all financial health criteria.
- Margin of SafetyThe current valuation multiples, including a PER of 27.78 and EV/EBITDA of 26.61, suggest the stock is trading at a premium, not offering a defensible margin of safety.
This analysis finds Chipotle's business model falls within the circle of competence, protected by a strong brand moat. However, a comprehensive assessment of financial health is not possible with the provided data, and the current valuation multiples indicate the stock is trading at a premium, failing the margin of safety criterion. Consequently, the company does not meet the full criteria of this value-investing framework.
Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.