Chipotle Mexican Grill vs. Sweetgreen: What's the Better Long-Term Play?
Key Points
Chipotle's same-store sales weakness has led to a more attractive valuation.
The company with better brand recognition and scale also has tremendous growth potential.
- 10 stocks we like better than Chipotle Mexican Grill ›
Chipotle Mexican Grill (NYSE: CMG) is no longer the only player in the fast-casual dining wars. Sweetgreen (NYSE: SG) was founded 14 years after the Tex-Mex chain, but it focuses on salads and bowls for health-conscious consumers.
Between these two restaurant stocks, what's the better long-term play?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
The winner is clear
I think the king of the fast-casual space, Chipotle, is the better stock to own over the next five years. For starters, the valuation has gotten a lot more attractive, with shares trading at a price-to-earnings ratio of 35.7. And from a fundamental perspective, this business has the brand recognition and scale to support its competitive position.
Look past the recent struggles
This is despite recent weakness, as same-store sales are expected to fall to low single digits in 2025, according to the management team. That's not as bad as the 8.1% (at the midpoint) drop Sweetgreen is forecasting for its fiscal 2025.
It's troubling to see Sweetgreen struggle to drive meaningful growth. It doesn't help that the company isn't profitable.
Chipotle, on the other hand, is the more proven restaurant concept, with an operating margin of 15.9% in the third quarter (ended Sept. 30, 2025). And it's still opening new locations at a notable pace, which will lead to higher revenue and earnings well into the future.
Should you buy stock in Chipotle Mexican Grill right now?
Before you buy stock in Chipotle Mexican Grill, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chipotle Mexican Grill wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $474,578!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,628!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 18, 2026.
Neil Patel 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.
Recommended Articles
