Chipotle Mexican Grill has been in the headlines recently for what seems to be troubling reasons. The most notable incident is the departure of the company's highly-regarded CEO. Additionally, a sharp 20% price decline in the stock has caught investors' attention. If you're a long-term growth investor, here are three reasons why you should remain positive about Chipotle stock.

First, the drop in Chipotle's shares isn't unusual. Growth stocks tend to experience sharp rises, consolidate gains, and then rise again. Though it can be challenging to hold through these fluctuations, companies with a strong growth trajectory often make these ups and downs worthwhile. Historically, Chipotle's current price retreat isn't out of the ordinary. Data from YCharts indicates that this is the seventh pullback of 20% or more. The stock has even declined 50% a few times and once as much as 75%. Yet, the current pullback leaves the stock around 20% below its all-time high, which includes its 52-week high. This pattern of a steady climb with intermittent drops is just how Chipotle's stock behaves.

Second, Chipotle is operating from a position of strength. The company isn't struggling; in fact, it's performing exceptionally well. For example, in the second quarter of 2024, same-store sales jumped 11.1%, a significant figure in an industry where low-single-digit growth is considered good. Overall sales surged 18.2% to $3 billion, aided by new store openings. While Chipotle might not sustain these impressive numbers indefinitely, it’s clear that the business is thriving right now. Despite what its stock price suggests, the company is executing at the top of its game.

Third, Chipotle's CEO departure isn't catastrophic. Yes, Brian Niccol was pivotal in steering Chipotle onto a solid growth path. However, his exit doesn’t spell doom. He leaves behind a competent team he handpicked and an efficiently operating business. The interim CEO, Scott Boatwright, is the former COO and knows the company well. Additionally, a high-level employee who recently announced retirement has agreed to stay on temporarily to assist. This suggests that the company remains in good hands. While it's wise to monitor the situation, there's no need to panic.

Growth stocks, including Chipotle, often follow a bumpy road that ultimately leads higher. Given the company's strong current performance and sound operations, the recent pullback appears to be just another typical fluctuation. Panicking is not warranted by the current facts.