CMG vs WING vs SHAK vs TXRH

For growth investors, Shake Shack Inc.

(SHAK) is the stronger pick with 15. 4% revenue growth year-over-year, versus 5. 4% for Chipotle Mexican Grill, Inc. (CMG). Wingstop Inc. (WING) offers the better valuation at 20. 9x trailing P/E (28. 3x forward), making it the more compelling value choice. Analysts rate Chipotle Mexican Grill, Inc. (CMG) a "Buy" — based on 67 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Wingstop Inc.

(WING) is the cheapest at 20. 9x versus Shake Shack Inc. at 64. 3x. On forward P/E, Texas Roadhouse, Inc. is actually cheaper at 28. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Texas Roadhouse, Inc. wins at 0. 41x versus Chipotle Mexican Grill, Inc. 's 0. 81x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Texas Roadhouse, Inc.

(TXRH) delivered a total return of +85. 8%, compared to -21. 9% for Shake Shack Inc. (SHAK). Over 10 years, the gap is even starker: WING returned +494. 8% versus SHAK's +100. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Texas Roadhouse, Inc.

(TXRH) is the lower-risk stock at 0. 75β versus Shake Shack Inc. 's 1. 81β — meaning SHAK is approximately 141% more volatile than TXRH relative to the S&P 500. On balance sheet safety, Texas Roadhouse, Inc. (TXRH) carries a lower debt/equity ratio of 127% versus 3% for Chipotle Mexican Grill, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Shake Shack Inc.

(SHAK) is pulling ahead at 15. 4% versus 5. 4% for Chipotle Mexican Grill, Inc. (CMG). On earnings-per-share growth, the picture is similar: Shake Shack Inc. grew EPS 354. 2% year-over-year, compared to -5. 7% for Texas Roadhouse, Inc.. Over a 3-year CAGR, WING leads at 24. 9% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Wingstop Inc.

(WING) is the more profitable company, earning 25. 0% net margin versus 3. 2% for Shake Shack Inc. — meaning it keeps 25. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WING leads at 27. 6% versus 5. 9% for SHAK. At the gross margin level — before operating expenses — WING leads at 82. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Texas Roadhouse, Inc. (TXRH) is the more undervalued stock at a PEG of 0. 41x versus Chipotle Mexican Grill, Inc. 's 0. 81x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Texas Roadhouse, Inc. (TXRH) trades at 28. 1x forward P/E versus 54. 4x for Shake Shack Inc. — 26. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WING: 120. 5% to $285. 93.

In this comparison, TXRH (1.

5% yield), WING (0. 9% yield) pay a dividend. CMG, SHAK do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Texas Roadhouse, Inc.

(TXRH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 75), 1. 5% yield, +331. 7% 10Y return). Shake Shack Inc. (SHAK) carries a higher beta of 1. 81 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TXRH: +331. 7%, SHAK: +100. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CMG is a mid-cap quality compounder stock; WING is a small-cap quality compounder stock; SHAK is a small-cap high-growth stock; TXRH is a mid-cap quality compounder stock. WING, TXRH pay a dividend while CMG, SHAK do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.