Between Yum Brands and Chipotle Mexican Grill, Which Stock Looks Set to Break Out?
Chipotle Mexican Grill surged 12% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Yum Brands gives you more. Yum Brands (YUM) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Chipotle Mexican Grill (CMG) stock, suggesting you may be better off investing in YUM
- YUM’s quarterly revenue growth was 8.4%, vs. CMG’s 7.5%.
- In addition, its Last 12 Months revenue growth came in at 11.6%, ahead of CMG’s 7.3%.
- YUM leads on profitability over both periods – LTM margin of 30.8% and 3-year average of 31.7%.
These differences become even clearer when you look at the financials side by side. The table highlights how CMG’s fundamentals stack up against those of YUM on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CMG | YUM | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 27.0 | 17.6 | YUM |
| Revenue Growth | |||
| Last Quarter | 7.5% | 8.4% | YUM |
| Last 12 Months | 7.3% | 11.6% | YUM |
| Last 3 Year Average | 11.9% | 6.4% | CMG |
| Operating Margins | |||
| Last 12 Months | 16.9% | 30.8% | YUM |
| Last 3 Year Average | 17.0% | 31.7% | YUM |
| Momentum | |||
| Last 3 Year Return | 33.4% | 29.0% | CMG |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CMG Revenue Comparison | YUM Revenue Comparison
See more margin details: CMG Operating Income Comparison | YUM Operating Income Comparison
- Why CMG, YUM Could Outperform Starbucks Stock
- CMG, YUM Top Starbucks Stock on Price & Potential
- Chipotle Mexican Grill Stock at Support Zone – Bargain or Trap?
- Better Value & Growth: CMG, YUM Lead Starbucks Stock
- CMG, YUM Look Smarter Buy Than Starbucks Stock
- Why Chipotle’s Selloff May Not Be Over Yet
See detailed fundamentals on Buy or Sell YUM Stock and Buy or Sell CMG Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CMG Return | 26% | -21% | 65% | 32% | -39% | 8% | 45% | ||
| YUM Return | 30% | -6% | 4% | 5% | 15% | 3% | 57% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 2% | 85% | <=== | |
| Monthly Win Rates [3] | |||||||||
| CMG Win Rate | 50% | 42% | 67% | 67% | 33% | 100% | 60% | ||
| YUM Win Rate | 67% | 33% | 50% | 58% | 50% | 100% | 60% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 100% | 71% | <=== | |
| Max Drawdowns [4] | |||||||||
| CMG Max Drawdown | -6% | -31% | -2% | -3% | -51% | 0% | -15% | ||
| YUM Max Drawdown | -7% | -23% | -8% | -3% | -8% | -1% | -8% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | 0% | -7% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 1/12/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read YUM Dip Buyer Analyses and CMG Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about CMG or YUM? Consider portfolio approach.
Portfolios Win When Stock Picks Fall Short
Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.