Better Buy: Chipotle vs. McDonald's
Both Chipotle (NYSE: CMG) and McDonald's (NYSE: MCD) stocks are trading near all-time highs as of mid-2023. The businesses brushed aside concerns about slowing consumer spending or weakening profits and instead are reporting some of the strongest customer traffic and earnings results that investors have seen in years.
Wall Street is aware of these positive trends, though, as reflected in the fact that the stocks are trading at elevated valuations right now. With that caution signal in mind, let's take a look at which of these two restaurant chains would be the better long-term investment from here.
McDonald's owns the top position when it comes to recent growth trends. Sales in the first quarter were up a blazing 13% year over year thanks to a balance between rising customer traffic and increased average spending. Executives credit a return to basics like customer service for helping achieve these market-leading results. "We have refocused on operational excellence," CEO Chris Kempczinski said in a late-April press release.
Source Fool.com
