CAVA Group, Inc. (CAVA) vs Shake Shack, Inc. (SHAK)

CAVA Group, Inc. and Shake Shack, Inc. are both Restaurants companies. CAVA Group, Inc. is the larger, with a market value of $6.3B against $2.5B — 2.5× the size. Shake Shack, Inc. trades at the lower P/E: 56.5× against 90.5×. CAVA Group, Inc. grew revenue faster over the last twelve months: 26.8% against 17.3%. CAVA Group, Inc. has the higher net margin (4.82% vs 2.56%) and the higher return on invested capital (11.1% vs 6.77%). Across the 19 metrics below, CAVA Group, Inc. leads on 12 and Shake Shack, Inc. on 7.

Valuation

Metric CAVA SHAK Restaurants median
P/E 90.49 56.53 22.14
P/S 4.38 1.44 0.91
P/B 7.15 3.92 2.01
Price to free cash flow 122.69 n/m 19.41
EV/EBITDA 38.09 12.70 11.48
EV/Sales 4.28 1.41 1.20
Earnings yield 1.11% 1.77% 2.30%
Free cash flow yield 0.82% (0.52%) 3.92%

Profitability

Metric CAVA SHAK Restaurants median
Gross margin 44.52% 25.29% 38.77%
Operating margin 5.24% 3.57% 4.30%
Net margin 4.82% 2.56% 1.85%
Free cash flow margin 3.57% (0.75%) 3.12%
Return on equity 8.32% 7.28% 3.07%
Return on assets 4.75% 2.13% 1.50%
Return on invested capital 11.10% 6.77% 3.14%

Growth

Metric CAVA SHAK Restaurants median
Revenue growth (TTM) 26.79% 17.33% 5.16%
EPS growth (last fiscal year) (50.91%) 354.17% —
Revenue growth, 5-year CAGR — 22.55% 10.57%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric CAVA SHAK Restaurants median
Debt to equity 0.00 0.43 0.10
Current ratio 2.48 1.67 0.81
Net debt to EBITDA (3.05) (0.65) 0.43

Dividend

Metric CAVA SHAK Restaurants median
Dividend yield — — 2.32%
Payout ratio — 0.00 0.00

Size

Metric CAVA SHAK Restaurants median
Market cap 6.26b 2.46b 482.66m

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