CMG - Chipotle and Cava Are Market Darlings. These 2 Other Differentiated Restaurant Chains Could Follow Similar Paths.
2024-06-23 12:03:00 ET
Burrito chain Chipotle Mexican Grill (NYSE: CMG) and Mediterranean concept Cava Group (NYSE: CAVA) are undeniably stock market darlings in the restaurant industry. Over the past year, Chipotle's shares are up 70%, and Cava's are up by a whopping 150%. Investors are simply enthused with what they see.
There's good reason for that enthusiasm. Their businesses are both doing remarkably well, and investors can measure the success from multiple angles.
It's hard to earn hefty profits in the restaurant space, but this duo does it better than most. At the restaurant level, Chipotle had an operating margin of almost 28% in the first quarter of 2024, and Cava's margin was 25%.
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Chipotle and Cava Are Market Darlings. These 2 Other Differentiated Restaurant Chains Could Follow Similar Paths.