Chipotle Mexican Grill, Inc. (CMG) & Noodles & Co (NDLS): Burritos Vs Noodles – A Culinary Approach to Investing

As consumers trend towards gluten-free and more health conscious eating, it will be a huge impetus for Chipotle Mexican Grill, Inc. (NYSE:CMG) and a big drawback for Noodles & Co (NASDAQ:NDLS) To understand why this is true, we’ll have to go on a culinary tangent.

Noodles & Co (NASDAQ:NDLS) menu is centered around… guess… noodles. Noodles are almost always made with gluten, something which many Americans are avidly trying to avoid. Compare this to Chipotle’s menu, which consists of almost all gluten-free items, barring its flour tortillas.

And while Noodles & Co (NASDAQ:NDLS) does offer gluten-free foods, it doesn’t guarantee its products safe for people with gluten sensitivity. This current trend could become much bigger in the coming years, and can’t serve to help a company with the word “Noodles” in its restaurant name.

You get what you pay for

Chipotle Mexican Grill, Inc. (NYSE:CMG)’s stock is pretty expensive, but it shouldn’t be mistaken for a bad company. The company’s management is excellent, and its driving factors and relatively average PEG of 1.5 makes this company a hold, not a sell.

Noodles & Co (NASDAQ:NDLS) has been called the next “Chipotle,” but it only seems similar in terms of its “early-stage hype.” Noodles & Co. does indeed have opportunity for growth, but without a solid history of numbers, resorting to business analysis is the best option. And from this analysis, the company proves to be sub-par in almost every aspect.

I would hold onto Chipotle Mexican Grill, Inc. (NYSE:CMG), and stay away from Noodles & Co (NASDAQ:NDLS) until the up-and-comer can prove itself viable, at least at an over-inflated stock price.

The article Burritos Vs Noodles – A Culinary Approach to Investing originally appeared on Fool.com.

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