2 Restaurant Stocks Going in Different Directions

By Chris Hill – Dec 19, 2013 at 7:01PM

NYSE: CMG

Chipotle Mexican Grill

Market Cap

$81B

Today's Change

(0.40%) $11.76

Current Price

$2,926.76

Price as of April 24, 2024, 4:00 p.m. ET

The rift between traditional casual restaurants and newer "fast casual" options grows wider, and companies like Chipotle stand to profit big, as Darden Restaurants and others are left in the dust.

In this video from Thursday's MarketFoolery podcast, host Chris Hill and Motley Fool analysts Jason Moser and David Hanson take a deep Foolish dive into the biggest stories from the market today.

Darden Restaurants (DRI 0.46%) sold off today on earnings news, and also announced it would be spinning off its Red Lobster business as the weakest performer among the restaurants under the Darden umbrella. Chipotle (CMG 0.40%) is still full steam ahead, and has announced that it will be getting into the pizza business with its first location of Pizzeria Locale, to open in Denver. Will this be a winning move for Chipotle, and are "fast casual" restaurants like Chipotle destined to drive traditional casual dining companies, like Darden Restaurants, out of business? In this segment, the guys discuss the future of Chipotle, Darden, and the restaurant industry as a whole.

Chris Hill owns shares of Chipotle Mexican Grill. David Hanson owns shares of Panera Bread. Jason Moser owns shares of Chipotle Mexican Grill. The Motley Fool recommends Chipotle Mexican Grill and Panera Bread. The Motley Fool owns shares of Chipotle Mexican Grill, Darden Restaurants, and Panera Bread. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.