The Nasdaq Composite has delivered a total return of approximately 20% since the start of 2024, and some companies have notably outpaced these returns in share-price performance. However, the performance of any stock in a single year should never be the sole reason you decide to buy or sell.

Instead, there should be a clear business thesis that underpins any stock you buy, and the company should align with the overall growth goals and risk tolerance levels that you've set for your personal portfolio. On that note, if you're looking for stocks that are already soaring this year and have intriguing businesses to drive long-term growth, here are two names to consider the next time you go stock shopping.

1. Netflix

Netflix (NFLX 0.98%) is trading roughly 40% higher from the start of 2024. The streaming giant was one of the pandemic darlings that subsequently met the ire of investors as growth slowed and profitability waned. But it has returned to steady gains after this period of difficulty.

While Netflix saw its market share decline in recent years due to increased competitiveness in the space, it still controls about 20% of the streaming market in the U.S., at the time of this writing. However, the company is still the top streaming platform in the world.

The company makes most of its money from recurring subscriptions. Its recent launch of an ad-based tier for a cheaper monthly rate also introduced advertising revenue into the mix. The company makes some additional revenue through partnerships with providers and other entertainment entities.

Netflix's efforts to crack down on password sharing, diversify its revenue streams, and give more options to subscribers breathed new life into its balance sheet. In the first quarter of 2024, revenue rose 15% year over year to $9.4 billion, while operating income jumped 54% to $2.6 billion. The company ended the quarter with 269.6 million global streaming memberships, a healthy 16% increase from the same quarter in 2023.

Netflix is working on growing its member base and making its platform more advertiser-friendly. Ads membership grew 65% sequentially in the first quarter of 2024 following sequential hikes of around 70% in the prior two quarters. The company's ad-based tier appears to be widely popular: In markets where this tier is available, 40% of signups are for the ads plan.

In addition, the company is cash-flow positive, bringing in free cash flow of around $2.1 billion in the most recent quarter alone.

Netflix is still a powerhouse in the streaming space. The continued innovation of its content and methods of delivering that content to subscribers are enabling solid growth after a difficult time of transition. Investors might want to stay along for the ride or start a position in this top streaming stock.

2. Chipotle Mexican Grill

Chipotle Mexican Grill (CMG -5.24%) has seen shares rocket about 47% from the beginning of this year as the strength of its underlying business has drawn investors to take a slice of the action. The stock has been in the news for numerous reasons lately, including its record upcoming 50-for-1 stock split.

This will be one of the largest splits in the history of the New York Stock Exchange. Shareholders of record as of June 26 will own a stake of Chipotle that's valued at the same amount as prior to the split, but the price of each share will be approximately one-50th of what it was before the split happened. Looking at it another way, as of June 26, shareholders will own 49 additional shares for each share they held before the split.

Stock splits don't impact the value or market capitalization of a company but do increase the number of outstanding shares while decreasing the cost of each share. This can make a stock that has gotten quite expensive much more accessible for investors.

Chipotle has a unique model in the fast-casual space in that it doesn't franchise any of its locations. Instead, all locations are owned and operated by the company. Its business model is simple: It derives revenue from sales through its restaurants and continues to leverage various competitive factors to expand its business moat, including fresh ingredients from quality sources, a relatively small menu, reasonable prices, and a growing digital presence.

In 2023, 37% of its food and beverage revenue came from digital sales. Total revenue last year came to just shy of $10 billion, a 14% increase from 2022.

Chipotle opened 271 new restaurants last year, and most had Chipotlanes, its newer drive-through locations that allow customers to order online and pick up the order from the comfort of their vehicles. Total profits for the 12-month period came to $1.2 billion, a 37% increase from the prior year.

In the first quarter of 2024, total revenue rose 14% year over year to $2.7 billion, while net income rose 23% to $359 million. Restaurant-level operating margins were 27.5% in the quarter, up 190 basis points year over year.

There's a lot to like about this stock, its simple business model, and the continued value proposition to the end consumer. While Chipotle's shares are about to become much more accessible after the stock split, this looks like a top restaurant stock to buy and hold for the long haul that can deliver generous returns in the years ahead.