CAVA Group, Inc. (CAVA)vsYum! Brands Inc (YUM)
CAVA
CAVA Group, Inc.
$80.29
-4.90%
CONSUMER CYCLICAL · Cap: $9.83B
YUM
Yum! Brands Inc
$159.16
-0.17%
CONSUMER CYCLICAL · Cap: $44.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 596% more annual revenue ($8.21B vs $1.18B). YUM leads profitability with a 19.0% profit margin vs 5.4%. YUM trades at a lower P/E of 28.7x. YUM earns a higher WallStSmart Score of 59/100 (C).
CAVA
Avoid34
out of 100
Grade: F
YUM
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1735.7%
Fair Value
$3.67
Current Price
$80.29
$76.62 premium
Margin of Safety
+38.8%
Fair Value
$259.74
Current Price
$159.16
$100.58 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 20.9% year-over-year
Strong operational efficiency at 31.9%
Earnings expanding 27.7% YoY
Areas to Watch
Trading at 12.0x book value
Grey zone — moderate risk
5.4% margin — thin
Operating margin of 1.4%
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CAVA
The strongest argument for CAVA centers on Revenue Growth. Revenue growth of 20.9% demonstrates continued momentum.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth. Profitability is solid with margins at 19.0% and operating margin at 31.9%.
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 : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
CAVA profiles as a growth stock while YUM is a mature 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.
YUM generates stronger free cash flow (482M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (59/100 vs 34/100), backed by strong 19.0% margins. 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 →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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