McDonald's vs Chipotle Mexican Grill

McDonald's and Chipotle Mexican Grill are two popular fast-food restaurant chains that have garnered significant attention from investors. While both companies operate in the food industry, they have distinct business models and target markets. McDonald's is a global giant known for its classic menu offerings and widespread presence, while Chipotle is recognized for its focus on fresh, high-quality ingredients and customizable menu options. Investors often compare and contrast the performance of McDonald's and Chipotle stocks to determine which company offers better investment opportunities.

McDonald's

Chipotle Mexican Grill

Stock Price
Day Low$311.01
Day High$315.36
Year Low$243.53
Year High$315.36
Yearly Change29.50%
Revenue
Revenue Per Share$35.83
5 Year Revenue Growth0.30%
10 Year Revenue Growth0.24%
Profit
Gross Profit Margin0.56%
Operating Profit Margin0.46%
Net Profit Margin0.32%
Stock Price
Day Low$58.91
Day High$60.09
Year Low$35.97
Year High$69.26
Yearly Change92.55%
Revenue
Revenue Per Share$7.77
5 Year Revenue Growth1.05%
10 Year Revenue Growth2.45%
Profit
Gross Profit Margin0.26%
Operating Profit Margin0.17%
Net Profit Margin0.13%

McDonald's

Chipotle Mexican Grill

Financial Ratios
P/E ratio27.11
PEG ratio0.37
P/B ratio-46.69
ROE-172.90%
Payout ratio56.79%
Current ratio1.08
Quick ratio1.06
Cash ratio0.20
Dividend
Dividend Yield2.66%
5 Year Dividend Yield8.26%
10 Year Dividend Yield7.16%
McDonald's Dividend History
Financial Ratios
P/E ratio58.22
PEG ratio10.48
P/B ratio22.12
ROE43.32%
Payout ratio0.00%
Current ratio1.71
Quick ratio1.68
Cash ratio0.77
Dividend
Dividend Yield-%
5 Year Dividend Yield0.00%
10 Year Dividend Yield0.00%
Chipotle Mexican Grill Dividend History

McDonald's or Chipotle Mexican Grill?

When comparing McDonald's and Chipotle Mexican Grill, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between McDonald's and Chipotle Mexican Grill.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. McDonald's has a dividend yield of 2.66%, while Chipotle Mexican Grill has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. McDonald's reports a 5-year dividend growth of 8.26% year and a payout ratio of 56.79%. On the other hand, Chipotle Mexican Grill reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with McDonald's P/E ratio at 27.11 and Chipotle Mexican Grill's P/E ratio at 58.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. McDonald's P/B ratio is -46.69 while Chipotle Mexican Grill's P/B ratio is 22.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, McDonald's has seen a 5-year revenue growth of 0.30%, while Chipotle Mexican Grill's is 1.05%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with McDonald's's ROE at -172.90% and Chipotle Mexican Grill's ROE at 43.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $311.01 for McDonald's and $58.91 for Chipotle Mexican Grill. Over the past year, McDonald's's prices ranged from $243.53 to $315.36, with a yearly change of 29.50%. Chipotle Mexican Grill's prices fluctuated between $35.97 and $69.26, with a yearly change of 92.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.

Comparision