Shake Shack Has Outgrown Chipotle Over the Last 5 Years. This 1 Chart Shows Why Chipotle Is Still Crushing Shake Shack in the Stock Market
On Aug. 1, popular burger chain Shake Shack (NYSE: SHAK) reported financial results for its fiscal second quarter, showing revenue growth of 16%. That was almost as good as the 18% revenue growth Chipotle Mexican Grill (NYSE: CMG) reported in its second quarter.
This is normal. The two chains have grown at a similar pace over the last five years with Shake Shack slightly outpacing Chipotle. But if you invested $1,000 in Chipotle stock five years ago, you'd have nearly $3,200 now. If you had done the same thing with Shake Shack stock, you'd have just $1,100 today.
Revenue growth is one of the most important things to look for when investing in stocks, but it's far from the only thing. And one chart shows why Shake Shack's growth hasn't enriched its shareholders like it has for Chipotle investors.
Source Fool.com