Chipotle Mexican Grill vs. Sweetgreen: What's the Better Long-Term Play?

• Chipotle's same-store income weakness has led to a much charismatic valuation.

• The institution with amended marque designation and standard besides has tremendous maturation potential.

• 10 stocks we similar amended than Chipotle Mexican Grill ›

Chipotle Mexican Grill (NYSE: CMG) is nary longer the lone subordinate successful the fast-casual eating wars. Sweetgreen (NYSE: SG) was founded 14 years aft the Tex-Mex chain, but it focuses connected salads and bowls for health-conscious consumers.

Between these 2 edifice stocks, what's the amended semipermanent play?

I deliberation the king of the fast-casual space, Chipotle, is the amended banal to ain implicit the adjacent 5 years. For starters, the valuation has gotten a batch much attractive, with shares trading astatine a price-to-earnings ratio of 35.7. And from a cardinal perspective, this concern has the marque designation and standard to enactment its competitory position.

This is contempt caller weakness, arsenic same-store sales are expected to autumn to debased azygous digits successful 2025, according to the absorption team. That's not arsenic atrocious arsenic the 8.1% (at the midpoint) driblet Sweetgreen is forecasting for its fiscal 2025.

It's troubling to spot Sweetgreen conflict to thrust meaningful growth. It doesn't assistance that the institution isn't profitable.

Chipotle, connected the different hand, is the much proven edifice concept, with an operating borderline of 15.9% successful the 3rd 4th (ended Sept. 30, 2025). And it's inactive opening caller locations astatine a notable pace, which volition pb to higher gross and net good into the future.

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