Better Buy: Costco vs. Shake Shack

Warehouse clubs and juicy burgers have little in common, and this became painfully clear when the pandemic hit home. Costco's (NASDAQ: COST) retail outlets remained popular during the early stages of the COVID-19 outbreak. It was an essential business. Shake Shack (NYSE: SHAK) went the other way with sales plummeting during the first few weeks of the normal. Its burgers, frozen custard treats, and crinkle-cut fries are delicious -- but not essential.

Pitting Costco against Shake Shack doesn't seem fair at first glance. However, as two players that are growing in their fields -- Costco with its empire of warehouse clubs and Shake Shack with its "better burger" fast casual concept -- it's a fight that belongs on the menu. Let's see which stock is the better buy at current levels.

Image source: Getty Images.

Source Fool.com