WallStSmart

CAVA Group, Inc. (CAVA)vsChipotle Mexican Grill Inc (CMG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Chipotle Mexican Grill Inc generates 911% more annual revenue ($11.93B vs $1.18B). CMG leads profitability with a 12.9% profit margin vs 5.4%. CMG trades at a lower P/E of 28.5x. CMG earns a higher WallStSmart Score of 56/100 (C).

CAVA

Avoid

34

out of 100

Grade: F

Growth: 6.7Profit: 4.5Value: 3.0Quality: 7.0
Piotroski: 2/9Altman Z: 1.98

CMG

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 8.0Value: 7.3Quality: 5.0
Piotroski: 4/9Altman Z: 2.47
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAVASignificantly Overvalued (-1735.7%)

Margin of Safety

-1735.7%

Fair Value

$3.67

Current Price

$80.29

$76.62 premium

UndervaluedFair: $3.67Overvalued
CMGSignificantly Overvalued (-147.3%)

Margin of Safety

-147.3%

Fair Value

$15.05

Current Price

$32.50

$17.45 premium

UndervaluedFair: $15.05Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAVA1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
20.9%8/10

Revenue surging 20.9% year-over-year

CMG1 strengths · Avg: 10.0/10
Return on EquityProfitability
47.4%10/10

Every $100 of equity generates 47 in profit

Areas to Watch

CAVA4 concerns · Avg: 3.5/10
Price/BookValuation
12.0x4/10

Trading at 12.0x book value

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Profit MarginProfitability
5.4%3/10

5.4% margin — thin

Operating MarginProfitability
1.4%3/10

Operating margin of 1.4%

CMG4 concerns · Avg: 4.0/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

P/E RatioValuation
28.5x4/10

Moderate valuation

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : CAVA

The strongest argument for CAVA centers on Revenue Growth. Revenue growth of 20.9% demonstrates continued momentum.

Bull Case : CMG

The strongest argument for CMG centers on Return on Equity.

Bear Case : CAVA

The primary concerns for CAVA are Price/Book, Altman Z-Score, Profit Margin. A P/E of 156.3x leaves little room for execution misses.

Bear Case : CMG

The primary concerns for CMG are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 3.48 is elevated, increasing financial risk.

Key Dynamics to Monitor

CAVA profiles as a growth stock while CMG is a value play — different risk/reward profiles.

CAVA carries more volatility with a beta of 2.18 — expect wider price swings.

CAVA is growing revenue faster at 20.9% — sustainability is the question.

CMG generates stronger free cash flow (228M), providing more financial flexibility.

Bottom Line

CMG scores higher overall (56/100 vs 34/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

CAVA Group, Inc.

CONSUMER CYCLICAL · RESTAURANTS · USA

CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company is headquartered in Washington, District of Columbia.

Visit Website →

Chipotle Mexican Grill Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in tacos and Mission burritos that are made to order in front of the customer.

Visit Website →

Want to dig deeper into these stocks?