Chipotle Is Down 14% Compared to McDonald's 24%. But There's an Even Better Restaurant Stock to Buy in October.
Texas Roadhouse may be worth a closer look after its recent pullback, especially with sales growing, new restaurants opening, and a dividend returning cash to shareholders.
Overview
Chipotle (NYSE: CMG) and McDonald's (NYSE: MCD) are both in a slump this year. Chipotle's stock is down about 14% year to date as of Sept. 29. McDonald's has fallen even more, with a drop of roughly 24% over the same period.
These dips warrant some attention. Both companies still have strong brands, steady traffic, and global scale. For long‑term investors, buying great businesses after a sell‑off is often a smart instinct. Here, though, I'd look one step further down the restaurant aisle. There's a chain whose ticker has been beaten down, but its story is tied less to marketing campaigns than to the operations that keep humming even when markets wobble.
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Originally published at www.fool.com.