Better Buy: Starbucks vs. Chipotle

Starbucks (NASDAQ: SBUX) and Chipotle Mexican Grill (NYSE: CMG) are both outstanding businesses that revolutionized their respective food and beverage categories. The ubiquitous coffeehouse chain made it trendy to pay a premium for a daily cup of joe, while the Tex-Mex-inspired fast-casual pioneer found success delivering fresh, great-tasting food quickly. 

Chipotle is the hotter stock right now, as its shares have climbed roughly 70% over the past 12 months. Having fully recovered from the coronavirus pandemic, its business has returned to growth. This is in contrast to Starbucks, whose sales in the most recent quarter were still below the prior-year period. 

Investors contemplating which stock to add to their portfolios need to assess the long-term outlooks for these companies following what was a disruptive 2020. Let's dive in and find out which of these consumer favorites might deserve your capital investment.

Continue reading


Source Fool.com