Better Stock to Buy Right Now: Cava vs. Chipotle Mexican Grill

In the world of fast-casual restaurants, two companies with similar concepts for customizable meals, but in different cuisine categories, stand out: Cava Group (NYSE: CAVA) and Chipotle Mexican Grill (NYSE: CMG). Each has delivered market-beating returns since going public, but which of these restaurant chains offers the tastiest opportunity for investors from here? Let's try and find out.Chipotle's successful strategy of only having company-owned and operated restaurants was a blueprint that Cava, a Mediterranean food chain, has emulated. As of the ends of their respective second quarters, Chipotle was operating 3,530 restaurants, while younger upstart Cava had only 341 locations. In Q2, Chipotle generated $2.97 billion in revenue and $455.7 million in net income, for year-over-year growth of 18.2% and 33.3%, respectively. Its revenue growth was partly attributable to the 262 net new locations it opened over the prior 12 months, but it also grew its comparable-restaurant transaction volume by 8.7% year over year. Additionally, the company's restaurant-level operating margin widened from 27.5% in Q2 2023 to 28.9% in Q2 2024. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool