Better Buy: Chipotle vs. McDonald's
Chipotle Mexican Grill (NYSE: CMG) and McDonald's (NYSE: MCD) have taken different paths despite some obvious commonalities. McDonald's is the long-established fast food giant that was a one-time investor in Chipotle.
However, after McDonald's sold its stake in the emerging restaurant chain, Chipotle succeeded by taking a different approach to both food and its business model. So far, that approach has offered higher returns for Chipotle shareholders. The question now is whether it will continue to do so.
Given the menu selections, one might assume this is simply a competition of burritos versus hamburgers. After all, both restaurant chains have developed an extensive footprint across the U.S., reinforcing a perception that this is a battle of fast food stocks.
Source Fool.com
