Shares of Shake Shack and Chipotle are both down over 30% year to date, but Shake Shack has seen 19 consecutive quarters of growing same-store sales, while Chipotle recently cut its full-year forecast for same-store sales. Despite the differences, neither company makes the buy list for 2026.

Chipotle has seen incredible growth since its IPO nearly 20 years ago, with shares returning over 4,000%. However, recent quarters have shown a decline in same-store sales, with growth rates dropping significantly compared to previous years. The company is facing challenges with restaurant-level margins and declining customer visits.

Shake Shack, on the other hand, is experiencing healthy growth in same-store sales, with a 4.9% increase year over year. The company is focused on expanding its store count, aiming to triple the number of locations. Shake Shack has shown consistent growth in same-store sales for 19 quarters, indicating strong potential for future earnings.

While Shake Shack appears more promising than Chipotle, its high price-to-earnings ratio of 84 may be a cause for concern. Waiting for a more reasonable valuation before investing could be a prudent move. Despite Shake Shack’s positive performance, caution is advised when considering an investment.

The Motley Fool Stock Advisor team has identified 10 stocks they believe are better investments than Chipotle Mexican Grill. These selected stocks have the potential for significant returns in the coming years, based on historical performance. Investors are encouraged to explore these alternative investment opportunities for potential growth.

William Dahl, the author of the article, has no position in either Shake Shack or Chipotle. The Motley Fool has positions in and recommends Chipotle Mexican Grill and offers recommendations for various investment options. Full disclosure of investment policies is available on The Motley Fool website.

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