Domino's Pizza (DPZ -0.81%) and Chipotle Mexican Grill (CMG -0.09%) are restaurant industry giants with unique operating concepts that have proven massively popular, translating into significant shareholder wealth. Since Domino's initial public offering (IPO) in 2004, the stock has returned a whopping 7,326%, while Chipotle shares are up an equally impressive 6,435% from its 2006 IPO. Though such returns may be difficult to replicate anytime soon, both companies enter 2025 well-positioned to continue rewarding investors.

Which stock is the best to buy right now? Here's what you need to know.

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The case for Domino's Pizza

Domino's Pizza is one of the world's largest restaurant chains, with more than 21,000 stores in over 90 countries. Its remarkable growth over the last several decades stems from its franchising model, which attracts independent operators through the brand recognition and corporate support structure. In turn, Domino's counts on the related franchise fees and sales royalties for its core income, while also acting as the ingredients supplier to ensure its strict quality standards.

Beyond a highly efficient operating system, its history of innovation is perhaps even more important to Domino's winning recipe. The company is recognized as pioneering online ordering and introducing one of the industry's first mobile apps and digital loyalty programs. Ongoing efforts to keep customers engaged and drive repeat pizza orders are a key part of its strategy.

The company is emerging from a challenging macroeconomic environment between 2022 and 2023 marked by inflationary cost pressures and soft sales. The latest trends from Domino's reflect an ongoing turnaround and overall robust business conditions. Pending fourth-quarter earnings to be released on Feb. 24, Domino's has guided annual global retail sales to increase by approximately 6% in 2024 and 2025. The company also sees upside to margins, allowing earnings to outpace the top line over time.

That steady, profitable growth profile is what makes Domino's a great stock. Investors confident in the company's ability to continue dominating its pizza category have plenty of reasons to buy and hold shares for the long run.

The case for Chipotle Mexican Grill

Chipotle stands out with its fast-casual dining experience, which starts with an assembly line ordering process that allows patrons to customize burritos, bowls, tacos, or salads. The open kitchen layout, featuring fresh and unprocessed ingredients, has capitalized on people's increasing preference for healthier food options.

In contrast to Domino's, Chipotle is smaller, with around 3,700 stores primarily in the United States. The key difference is that it owns and operates nearly all of them. This dynamic allows the company to retain all store revenue while maintaining better cost management control to enhance profitability. As a potential investment opportunity, Chipotle's greatest advantage is its stronger growth.

In the recently reported fourth quarter (for the period ended Dec. 31), Chipotle's total revenue increased 13.1% year over year, propelling adjusted earnings per share (EPS) 19% higher. The 5.4% growth in comparable restaurant sales surpassed Domino's 3% U.S. same-store sales growth in its third quarter.

Chipotle's ability to outperform the broader quick-service restaurant (QSR) category suggests that it is capturing market share through continued brand momentum. Management has reaffirmed a long-term goal of reaching 7,000 restaurants in North America, nearly double its current level in addition to a planned international expansion.

Investors who believe Chipotle is still in the early stages of achieving its full worldwide potential can make the case that it is the best restaurant stock to own. On the other hand, some caution is warranted as that growth runway commands a lofty valuation premium. Chipotle shares are trading at 45 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio. In comparison, Domino's stock, with a forward P/E of 26, appears to be a bargain.

CMG PE Ratio (Forward) data by YCharts.

Decision time: I'm ordering pizza

Choosing between Domino's Pizza and Chipotle is tough, as both companies demonstrate strong fundamentals. If forced to pick just one to buy now, I'd give the edge to Domino's stock, which appears to have more room to outperform given its modest expectations in the market. The stock also offers better value, featuring a regular quarterly dividend yield of 1.3%, and can work well for investors within a diversified portfolio.