Chipotle vs. Sweetgreen: Which Stock Will Make You Richer?

When it comes to investing, it's fairly easy to measure success. After all, people invest to make money. It's important to remember that short-term hiccups due to geopolitical and economic concerns can create a moneymaking opportunity for patient investors.

Of course, you should also consider how much risk you're willing to tolerate.

The restaurant industry has seen its share of challenges recently. Between Chipotle Mexican Grill (NYSE: CMG) and Sweetgreen (NYSE: SG), which restaurant stock provides the greater upside, and hence potential to make more money, over the long haul?

Image source: Getty Images.

The battle

Chipotle has long been a popular dining choice for those looking for a higher-quality meal than fast food at a still-reasonable price. Its food contains fresh ingredients that don't include any artificial colors, flavors, or preservatives.

But its sales haven't been immune to broad economic factors that have made people cautious about discretionary spending, including eating out. You can see that by looking at Chipotle's same-restaurant sales (comps). Last year's comps fell 1.7%, with traffic dropping, although spending increased.

Still, Chipotle's not the only restaurant feeling the pain. When the economy improves and inflation abates, people will feel more comfortable eating out, benefiting Chipotle. Meanwhile, the company continues to expand, opening 321 new restaurants last year, ending the year with more than 4,000.

Turning to Sweetgreen, its restaurants offer healthier fare than typical fast-casual chains. It seeks to use natural ingredients.

While its sales were on a roll, they hit a speed bump last year. Last year's comps dropped by 7.9% compared to a 6.2% increase in 2024.

Sweetgreen has been expanding, adding 25 restaurants in 2024 and 35 in 2025. It ended the year with 281 locations in 24 states and Washington, D.C.

Still, management plans to open much fewer restaurants, 15, this year. And it projects a 2% to 4% decrease in comps.

Making the decision

Both stock prices reflect the current challenges these companies face. Chipotle's share price has fallen 32% over the past year through March 2, while Sweetgreen's stock has fallen a precipitous 76.3%.

Sweetgreen doesn't report a profit under generally accepted accounting principles (GAAP). Hence, the price-to-earnings (P/E) ratio isn't applicable. However, another measure, the price-to-sales (P/S), will suffice.

Chipotle's P/S ratio has dropped from 6 to 4 over the last year. During this time, Sweetgreen's P/S multiple fell from 4 to 0.9.

But with Sweetgreen's more cautious sales outlook and growth plan, I'd turn to the tried-and-true Chipotle as the better long-term investment.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Sweetgreen and recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.