CAVA Group, Inc. (CAVA) vs Texas Roadhouse, Inc. (TXRH)

CAVA Group, Inc. and Texas Roadhouse, Inc. are both Restaurants companies. Texas Roadhouse, Inc. is the larger, with a market value of $12.6B against $7.0B — 1.8× the size. Texas Roadhouse, Inc. trades at the lower P/E: 30.7× against 107×. CAVA Group, Inc. grew revenue faster over the last twelve months: 27.0% against 9.89%. Texas Roadhouse, Inc. has the higher net margin (6.63% vs 4.50%) and the higher return on invested capital (21.1% vs 5.09%). Across the 20 metrics below, Texas Roadhouse, Inc. leads on 15 and CAVA Group, Inc. on 5.

Valuation

Metric CAVA TXRH Restaurants median
P/E 107.11 30.68 26.18
P/S 4.79 2.02 1.11
P/B 8.01 7.99 2.06
Price to free cash flow 172.26 28.82 17.92
EV/EBITDA 41.42 17.75 12.81
EV/Sales 4.49 2.01 1.29
Earnings yield 0.93% 3.26% 2.23%
Free cash flow yield 0.58% 3.47% 3.23%

Profitability

Metric CAVA TXRH Restaurants median
Gross margin 44.42% 15.69% 38.86%
Operating margin 4.86% 7.75% 4.59%
Net margin 4.50% 6.63% 1.83%
Free cash flow margin 2.78% 7.02% 2.47%
Return on equity 7.95% 27.13% 3.72%
Return on assets 4.53% 11.93% 1.10%
Return on invested capital 5.09% 21.14% 3.01%

Growth

Metric CAVA TXRH Restaurants median
Revenue growth (TTM) 27.03% 9.89% 5.52%
EPS growth (last fiscal year) (50.91%) (5.72%) (5.05%)
Revenue growth, 5-year CAGR — 19.64% 10.57%
Net income growth, 5-year CAGR — 66.97% 0.00%

Health

Metric CAVA TXRH Restaurants median
Debt to equity 0.00 0.03 0.22
Current ratio 2.45 0.46 0.78
Net debt to EBITDA (3.05) (0.20) 0.43

Dividend

Metric CAVA TXRH Restaurants median
Dividend yield — 1.53% 1.79%
Payout ratio — 0.47 0.45

Size

Metric CAVA TXRH Restaurants median
Market cap 7.01b 12.59b 612.23m

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