Which Growth Stock Is Cheaper, Cava Group or Wingstop?

Ladies and gentlemen, buckle up! We're diving into the world of fast-casual dining stocks to find out which growth stock is cheaper: Cava Group or Wingstop. Both companies are on fire, but which one is the better buy? Let's break it down!

First, let's talk about Cava Group. This Mediterranean-themed chain has been on a tear since its IPO in 2023. With 58 new restaurants opened in 2024 and plans to hit over 1,000 locations by 2032, Cava is expanding at a breakneck pace. Their same-restaurant sales growth has been nothing short of spectacular, with increases of 17.9% and 13.4% in 2023 and 2024, respectively. But here's the kicker: Cava's stock is trading at a whopping 77.3x its earnings, making it one of the most expensive stocks in the industry.

Now, let's turn our attention to Wingstop. This chicken wing specialist has been a favorite among investors for its focus on digital orders and delivery. With sales growth ranging from 21% to 46% over the last eight quarters, Wingstop is a growth machine. In the second quarter of 2025, Wingstop reported sales of $155.7 million, a 45% year-over-year increase. And get this: Wingstop's stock is trading at a more reasonable 62.3x its earnings, making it a relative bargain compared to Cava Group.

But wait, there's more! Let's look at some key metrics to see which stock is the better buy.



| Metric | Cava Group | Wingstop |
|-----------------------|------------|----------|
| PE Ratio | 77.3x | 62.3x |
| Enterprise Value/Revenue | 10.4x | N/A |
| Enterprise Value/EBITDA | 91.7x | N/A |
| PEG Ratio | 12.4x | N/A |

As you can see, Wingstop's lower PE ratio and potentially lower valuation metrics make it a more attractive investment option based on current valuation metrics. But don't forget, growth, growth, growth! Both companies are experiencing strong growth driven by their expansion strategies and focus on digital orders and delivery. These growth drivers have positively influenced their stock valuations, with investors recognizing the potential for continued growth and profitability.

So, which growth stock is cheaper? Based on the metrics, Wingstop appears to be the better buy. But remember, this is a no-brainer! Both companies have strong growth prospects, and either could be a winner in your portfolio. So, do this: Buy Wingstop for its relative value, but keep an eye on Cava Group for its explosive growth potential. And remember, the market hates uncertainty, so stay informed and stay ahead of the game!

Boo-yah! This stock’s a winner!