From Nasdaq MarketSite: 2025-05-11 12:05:00

Chipotle Mexican Grill (NYSE: CMG) reported disappointing first-quarter 2025 earnings, with the stock down 25% from its 52-week high. Wingstop (NASDAQ: WING) also posted weakening results, but fared better than Chipotle. Chipotle’s sales rose 6.4%, but same-store sales fell 0.4%. Wingstop’s income grew 15.7% with same store sales up 0.5%. Chipotle doesn’t pay a dividend, while Wingstop’s dividend yield is around 0.4%. Chipotle operates its own restaurants, while franchisees operate most of Wingstop’s locations. Chipotle may have more flexibility to adapt in a challenging market.

In terms of investment potential, Chipotle Mexican Grill wasn’t among the 10 best stocks recommended by the Motley Fool Stock Advisor team. The top-line growth for Chipotle was driven by new locations, while Wingstop’s growth was supported by its expanding store base. Chipotle’s P/E ratio is around 45, similar to Wingstop’s. Chipotle operates its restaurants, while Wingstop relies heavily on franchisees to operate its locations. Chipotle’s same-store sales decline may indicate a need for adaptation to consumer trends.



Read more at Nasdaq MarketSite: Buy Chipotle Mexican Grill on the Sell-Off? Or Is This Growth Machine a Better Choice?