CAVA vs. Chipotle: Which Restaurant Stock Is a Better Buy in 2026?

Earnings
โดย The Motley Fool·Read original
Summary · why it matters

CAVA Group is the better restaurant stock to invest in for 2026, driven by stronger revenue growth from both same-store sales and new locations. CAVA's first-quarter revenue jumped 32% to $434.4 million, with same-store sales growth of 10% and 20 new restaurants, while it expects to open at least 75 new locations this year. In contrast, Chipotle Mexican Grill's first-quarter revenue rose 7% to $3.1 billion but same-store sales increased just 0.5% and are expected to be flat for the full year, making its growth entirely dependent on new store openings. CAVA's fiscal 2025 revenue reached $1.2 billion with a net margin of 5.4%, while Chipotle posted $11.9 billion in revenue with a 12.9% net margin. Valuation metrics show CAVA trades at a forward P/E of 150.6 times and a price-to-sales ratio of 8.2 times, significantly higher than Chipotle's 29.4 times and 3.6 times, respectively.

Impact on stocks 2

Consumer Discretionary± Mixed · 2 stocks
CAVA Group, Inc.
CAVA
▲ PositiveDemandrelevance

CAVA's revenue jumped 32% with 10% same-store sales growth and 20 new restaurants, indicating strong customer demand.

Chipotle Mexican Grill Inc
CMG
▼ NegativeDemandrelevance

Chipotle's same-store sales increased only 0.5% and are expected to be flat for the full year, signaling weak demand.