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But, although fast-food chain Chipotle Mexican Grill, Inc. (CMG) has managed to gain significant ground over the past year, the stock has been losing its momentum lately on concerns over the company’s growth prospects. While CMG’s revenue increased 23.5% to $1.74 billion in the first quarter of 2021, its operating expenses surged 18% to $1.58 billion. In addition, the company closed five of its restaurants in the first quarter. And CMG’s recent menu price hike by roughly 4%, to cover the cost of raising its workers’ wages has piqued investors’ concerns.
In contrast, McDonald’s Corporation(MCD), Starbucks Corporation (NASDAQ:SBUX), Texas Roadhouse, Inc. (TXRH), and The Wendy’s Corporation (WEN) are better positioned to take advantage of the rising demand for indoor dining given that nearly 50% of the U.S. population is fully vaccinated against COVID-19. Since these companies have plenty of room for growth, we believe their stocks could be solid bets now in contrast to CMG’s.
