We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wingstop (WING) and Cava Group (CAVA) Are Aggressive Growth Stocks
Read MoreHide Full Article
As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan is always hungry for a good idea. This time around he looks at a couple of restaurant stocks in order to satiate he appetite.
Both of these stocks face the challenges of food price inflation and growing labor costs. At the same time, consumers might be “trading down” to these food offerings as opposed to many of the fast-casual restaurants.
Wingstop (WING - Free Report) is a Zacks Rank #1 (Strong Buy) and has more than 2000 locations across the globe. The company has a market capitalization of more than $11B and pays an $0.88 per share dividend for a 0.23% yield. The company is slated to show topline growth of 28% this year and growth that like comes at a price. The forward PE is 110x which is a lot, but as long as that solid growth continues the multiple is mostly justified.
Next up is CAVA Group (CAVA - Free Report) Which is also a Zacks Rank #1 (Strong Buy) and is in the food industry. CAVA is a Mediterranean fast-casual restaurant that also encompasses the Zoes Kitchen brand as well. CAVA sports growth estimates of 24% this year and 20% next year and for that growth investors are paying around 233x forward earnings.
Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Wingstop (WING) and Cava Group (CAVA) Are Aggressive Growth Stocks
As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan is always hungry for a good idea. This time around he looks at a couple of restaurant stocks in order to satiate he appetite.
Both of these stocks face the challenges of food price inflation and growing labor costs. At the same time, consumers might be “trading down” to these food offerings as opposed to many of the fast-casual restaurants.
Wingstop (WING - Free Report) is a Zacks Rank #1 (Strong Buy) and has more than 2000 locations across the globe. The company has a market capitalization of more than $11B and pays an $0.88 per share dividend for a 0.23% yield. The company is slated to show topline growth of 28% this year and growth that like comes at a price. The forward PE is 110x which is a lot, but as long as that solid growth continues the multiple is mostly justified.
Next up is CAVA Group (CAVA - Free Report) Which is also a Zacks Rank #1 (Strong Buy) and is in the food industry. CAVA is a Mediterranean fast-casual restaurant that also encompasses the Zoes Kitchen brand as well. CAVA sports growth estimates of 24% this year and 20% next year and for that growth investors are paying around 233x forward earnings.
Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.