2 Restaurant Stocks Poised for Big Gains in the Fast-Casual Sector
1. Cava Group
Plenty of restaurant stocks have been dubbed the next Chipotle. Those have mostly disappointed, but Cava Group (NYSE: CAVA) actually looks like the real deal.
Cava is a fast-casual chain focused on Mediterranean food, and its restaurants have the same industrial minimalist aesthetic that Chipotle is known for at its locations. The company saw revenue jump 52.5% to $175.5 million in the fourth quarter, with a same-store sales jump of 11.4% in the quarter.
Key Points:
- Strong financial performance with revenue growth and profit margin
- Experienced leadership with backing from industry veteran Ron Shaich
- Reasonably valued stock with potential for further growth
2. Sweetgreen
Like Cava, Sweetgreen (NYSE: SG) is a fast-casual stock specializing in salads. The company has shown revenue growth and plans to expand its Infinite Kitchen automated platform, potentially driving significant growth over the coming years.
Key Points:
- Unique asset in the Infinite Kitchen salad-making robot
- Rapid expansion plans and revenue growth trajectory
- Potential for differentiation and improved profitability
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