CAVA Group, Inc. (CAVA) vs Yum China (YUMC)

CAVA Group, Inc. and Yum China are both Restaurants companies. Yum China is the larger, with a market value of $13.8B against $6.3B — 2.2× the size. Yum China trades at the lower P/E: 14.8× against 90.5×. CAVA Group, Inc. grew revenue faster over the last twelve months: 26.8% against 8.78%. Yum China has the higher net margin (7.84% vs 4.82%) and the higher return on invested capital (18.0% vs 11.1%). Across the 20 metrics below, Yum China leads on 15 and CAVA Group, Inc. on 5.

Valuation

Metric CAVA YUMC Restaurants median
P/E 90.49 14.77 22.14
P/S 4.38 1.13 0.91
P/B 7.15 2.32 2.01
Price to free cash flow 122.69 14.98 19.41
EV/EBITDA 38.09 6.93 11.48
EV/Sales 4.28 1.03 1.20
Earnings yield 1.11% 6.77% 2.30%
Free cash flow yield 0.82% 6.67% 3.92%

Profitability

Metric CAVA YUMC Restaurants median
Gross margin 44.52% 22.02% 38.77%
Operating margin 5.24% 11.11% 4.30%
Net margin 4.82% 7.84% 1.85%
Free cash flow margin 3.57% 7.56% 3.12%
Return on equity 8.32% 15.58% 3.07%
Return on assets 4.75% 8.92% 1.50%
Return on invested capital 11.10% 18.03% 3.14%

Growth

Metric CAVA YUMC Restaurants median
Revenue growth (TTM) 26.79% 8.78% 5.16%
EPS growth (last fiscal year) (50.91%) 7.73% —
Revenue growth, 5-year CAGR — 7.38% 10.57%
Net income growth, 5-year CAGR — 3.45% 0.00%

Health

Metric CAVA YUMC Restaurants median
Debt to equity 0.00 0.02 0.10
Current ratio 2.48 0.96 0.81
Net debt to EBITDA (3.05) (0.75) 0.43

Dividend

Metric CAVA YUMC Restaurants median
Dividend yield — 1.57% 2.32%
Payout ratio — 0.28 0.00

Size

Metric CAVA YUMC Restaurants median
Market cap 6.26b 13.80b 482.66m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack