Better Reopening Stock: Starbucks or Chipotle?

September 29, 2021
Image source: Chipotle.

Each company benefits as consumers return to restaurants, but one fell farther and one has more upside going forward.

Key Points

  • Chipotle’s stock price is already up 36% year to date.
  • Chipotle is trading at a substantial premium compared to Starbucks when comparing P/E ratios.
  • Starbucks has more to gain from increasing consumer mobility.
The coronavirus pandemic wreaked havoc on world economies. Some, including the U.S., took the remarkable action of forcing non-essential businesses to close their doors temporarily. The move was intended to help slow the spread of COVID-19.

Thanks to efforts by the scientific community, several effective vaccines against the novel coronavirus were developed, and billions of doses have been administered. As a result, the total number of severe illnesses worldwide caused by COVID-19 is decreasing. The good news gave world leaders enough assurance to begin reopening economies cautiously.

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