It might seem like a strange comparison to pit Apple (AAPL 0.76%) and Chipotle Mexican Grill (CMG 0.91%) against each other, but these are two companies that are very popular among investors. While both face certain headwinds from things like tariffs and a bit of consumer uncertainty, I’m going to throw a real zinger out there, and call Chipotle the better investment at this time. Here’s why.
Financial trends
First and foremost, let’s look at how these two stocks have been doing. Over the last five years, Chipotle has been a much more consistent performer in terms of top-line revenue growth, expanding by 14.5% annually over the last few years. In comparison, Apple’s momentum has slid since 2021, with revenue growth in the low single digits, and even negative 2.8% in 2023.
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Looking to 2025, both companies started out fairly strongly. Chipotle had year-over-year revenue growth of 6.4% in the first quarter, with a 7.7% increase in earnings per share to $0.28 per diluted share. Apple, in comparison, posted a 5% increase in revenue in its second fiscal quarter, while earnings were up a strong 8% to $1.65.
On a trailing basis, Chipotle is a bit more expensive than Apple, carrying a P/E ratio of 44.8 vs. Apple’s price-to-earnings ratio of 31.2, but I believe my next point will explain why Chipotle is still the better buy.
Different stages in life
Apple is a mature tech giant. Its iPhone, iPad, and Mac product lines have already penetrated global markets extensively. Growth now hinges on incremental innovations, services, and accessories — areas that, while profitable, are already highly saturated and competitive. Take, for example, how many streaming services there are today as opposed to even a few years ago. Initiatives like Apple TV+ have a lot of competition now. Based on the sheer size of the company, it’s going to be harder to hit high growth rates.
Chipotle, by contrast, is still in a robust growth phase. With fewer than 4,000 stores and plans to expand in North America rapidly, Chipotle isn’t resting on its laurels. It also recently announced its intentions to begin opening stores in Mexico by early 2026. It has significant room for physical footprint growth with the addition of international markets, giving it an untapped global potential.
World events
Let’s face it. Tariffs are on everyone’s mind right now. With President Donald Trump recently threatening Apple with a 25% tariff if they don’t move their business back to the U.S., this is a nervous moment to hold a lot of Apple stock. When you consider how incredibly important the iPhone is to Apple’s bottom line, this really matters.
Chipotle, on the other hand, is arguably a little bit more insulated from all of the drama of global tech cycles, tech tariffs, semiconductor shortages, and international regulatory pressure. Sure, some of its food supply routes might experience some headaches, but we’re not seeing food targeted the way big tech is.
One worry is that the company did say earlier in the year that it would eat the costs of higher prices, rather than carrying them over to the consumer. That puts a damper on overall potential, but Chipotle still expects positive comp restaurant sales for the year.
Conclusion
The way I view it is fairly straightforward. Food is always in demand. Expensive phone upgrades and laptops are not. That gives Chipotle an edge. Apple remains a technological powerhouse, but its days of rapid growth may be behind it. Chipotle, on the other hand, is still a nimble, scalable company with strong brand loyalty, accelerating growth, and untapped markets.
David Butler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Chipotle Mexican Grill. The Motley Fool recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
