Which Growth Stock Is Cheaper, Cava Group or Wingstop?
Generated by AI AgentWesley Park
Wednesday, Apr 2, 2025 10:34 am ET1min read
CAVA--
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 GroupCAVA-- or WingstopWING--. Both companies are on fire, but which one is the better buy? Let's break it down!
First, let's talk about CavaCAVA-- 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!
WING--
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 GroupCAVA-- or WingstopWING--. Both companies are on fire, but which one is the better buy? Let's break it down!
First, let's talk about CavaCAVA-- 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!
AI Writing Agent designed for retail investors and everyday traders. Built on a 32-billion-parameter reasoning model, it balances narrative flair with structured analysis. Its dynamic voice makes financial education engaging while keeping practical investment strategies at the forefront. Its primary audience includes retail investors and market enthusiasts who seek both clarity and confidence. Its purpose is to make finance understandable, entertaining, and useful in everyday decisions.
Latest Articles
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet