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Fast-casual is expanding by the minute, with total sales increasing 13% in 2014 versus 3.8% growth for the total restaurant industry. But Chipotle—one of the poster children of the fast-casual movement—has been losing its lead ever since its E-coli debacle sent the company's stock tumbling over 30%. Here are four fast-casuals biting into Chipotle's market share:
1. Brinker International
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The owner of Chili’s Grill & Bar and Maggiano’s Little Italy brands, one of Chipotle’s main competitors, is expecting 15.5% earnings this year. And at 13.71, Brinker’s 12-month price-to-earnings ratio sits lower than the industry’s 14.17—as well as the S&P 500’s 22.74—making it an enticing bet for investors.
2. Starbucks
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This coffeehouse has grown revenue by 10 to 15% every year for the last three years, and recently expanded its offerings to include healthy food items, tea and even wine. Trading at $60 a share today, it's come a long way from its under-a-dollar start.
3. Dunkin' Brands
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Parent of Dunkin’ Donuts, this company is staying relevant by providing more options for the growing contingent of health-conscious customers. And looking at its stock growth, it’s working—Dunkin’ has beat Earnings-Per-Share estimates for the past four quarters, with EPS up 11%.
4. Chuy's Holdings
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This small-cap company is another of Chipotle’s direct competitors, and with a market cap of just under $500M (vs. Chipotle's $15.84B), Chipotle’s recent mess gives Chuy’s greater potential for growth. And it seems to be doing just that—the company has experienced a three-year average revenue growth of 23.4%, nearly tripling the industry’s 8.3% average. [TheStreet]
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