Chipotle vs Texas Roadhouse: Which Restaurant Stock Is the Better Long-Term Buy?

While Chipotle Mexican Grill (NYSE: CMG) and Texas Roadhouse (NASDAQ: TXRH) are some class leaders successful the edifice space, for a retirement-focused capitalist deciding betwixt the 2 close now, the second holds a wide borderline for income investors.

Chipotle trades astatine a trailing P/E of 29x and a guardant P/E of 30x connected net that grew conscionable 0.1% successful FY2025. That premium is being sustained by portion enlargement alone: comparable edifice income were antagonistic for the afloat year, with transactions declining 3.2% successful Q4 and 2026 guidance calling for astir level comps. The banal has shed 36.3% implicit the past year, yet inactive commands a price-to-sales ratio of 3.7x.

Texas Roadhouse trades astatine a trailing P/E of 27x and a guardant P/E of 27x connected a concern that grew gross 9.4% successful FY2025 with accordant affirmative postulation crossed each 3 of its brands. Its price-to-sales ratio is 1.8x, and the banal is down lone 5.4% implicit the past year, versus Chipotle's steep decline.

If you're focused connected picking the close stocks and ETFs you whitethorn beryllium missing the bigger picture: retirement income. That is precisely what The Definitive Guide to Retirement Income was created to solve, and it's escaped today. Read much here

Winner: Texas Roadhouse. Investors are paying little for a concern generating stronger top-line momentum.

Chipotle pays nary dividend. Its superior instrumentality strategy runs wholly done buybacks: $2.43 cardinal repurchased successful FY2025 astatine an mean terms of $42.54 per share, with $1.7 cardinal remaining connected its authorization. Buybacks person their place, but they supply nary income watercourse and, astatine the prices Chipotle repurchased shares successful 2025, the institution was buying aggressively supra wherever the banal trades contiguous adjacent $33.

Texas Roadhouse precocious raised its quarterly dividend to $0.75 per stock from $0.68, annualizing astatine $3.00 per share. The institution besides repurchased $150 cardinal successful shares during FY2025. For a retirement-focused capitalist who needs income, this favoritism is decisive.