Chipotle's (CMG) stock soared under the reign of outgoing CEO Brian Niccol.

But there's one reason why Pence Capital Management CIO Dryden Pence thinks Chipotle has so much more room to grow.

"The key thing here is that the company is very sensitive to their customers. They pay close attention. And I think that that's part of their culture. And that culture will probably stick around long after the CEO", says Pence

He follows that up with: "I also think that there's something going on with the consumer. Consumers have stopped this buying anything at any price, right? The surplus money from Covid is now gone. And it used to be any product at any price. Now they're looking for value. And so this is why you see the difference between McDonald's (MCD) and Chipotle. You know fast food is supposed to be fast and cheap, and when it's neither you don't buy it."

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This post was written by Nicholas Jacobino