Domino's vs. Chipotle: Stocks Show Promise Heading into 2025

Analysis reveals that both Domino's Pizza and Chipotle Mexican Grill are poised for continued growth, with Domino's showcasing a strong turnaround and Chipotle demonstrating robust revenue growth. Investors have compelling reasons to consider these stocks as they head into 2025.

Date: 09-02-2025

AI Rating: 7

Investor Insights on Domino's Pizza and Chipotle Mexican Grill

The report provides insights into two restaurant industry leaders, Domino's Pizza and Chipotle Mexican Grill, along with their potential impact on stock prices. Both companies have achieved significant stock performance, with Domino's returning 7,326% since its IPO in 2004 and Chipotle at 6,435% since 2006. Investors considering these stocks may focus on their operational models, market positions, and growth potential.

Domino's Pizza

Domino's operates around 21,000 stores globally and relies heavily on a franchising model. While it faced challenges related to inflation and soft sales in recent years, the company reports an anticipated growth in annual global retail sales of approximately 6% for 2024 and 2025. The firm also hints at improving profit margins, suggesting a positive outlook for earnings compared to revenue growth.

Chipotle Mexican Grill

Chipotle reports a robust 13.1% year-over-year increase in total revenue, along with a 19% rise in adjusted earnings per share (EPS). Its comparable restaurant sales growth of 5.4% outpaced Domino's 3%, indicating strong performance within the quick-service restaurant sector. Chipotle's long-term goal of expanding its store count to 7,000 in North America represents significant growth potential.

Both companies exhibit strong fundamentals, yet their investment appeal varies. Domino's stock holds the advantage of better value with a lower forward price-to-earnings (P/E) ratio of 26 compared to Chipotle's P/E of 45, although Chipotle has affirmed its strong market position. As investors weigh these factors, it is clear that both companies have the potential for rewarding returns, making them noteworthy considerations for portfolios heading into 2025.

Stocks: DPZ CMG