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CAVA vs. Sweetgreen: Which Fast-Casual Stock Has the Edge Right Now?
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Key Takeaways
CAVA's new units are averaging above $3M AUVs, reinforcing the scalability of its growth model.
Sweetgreen is rolling out Infinite Kitchen and Project One Best Way to improve execution and efficiency.
CAVA stock fell 15.3% in three months, while Sweetgreen shares plunged 27.9% over the same period.
CAVA Group, Inc. (CAVA - Free Report) and Sweetgreen, Inc. (SG - Free Report) represent two distinct yet compelling approaches to the fast-casual healthy eating opportunity. CAVA is pioneering the Mediterranean category, with strong unit economics, profitable growth and rapid national expansion, while Sweetgreen is redefining modern fast food through seasonal menus, sustainability and automation with its Infinite Kitchen model.
The comparison between these two restaurant players becomes particularly relevant in today’s market environment, where investors are closely examining consumer discretionary stocks for resilience, profitability and long-term scalability.
The broader U.S. fast-casual market remains resilient, with total restaurant sales continuing to outpace pre-pandemic trends despite persistent traffic pressures. Operators have managed to keep food cost ratios largely in check even amid inflation and new tariff pressures, thanks to menu discipline, efficiency gains, and steady demand. Digital ordering, loyalty engagement and menu innovation remain key battlegrounds, while new store formats and automation are reshaping future growth trajectories.
Against this dynamic backdrop, both CAVA and Sweetgreen are adapting their models to capture evolving consumer preferences. But for investors, the central question remains: Which fast-casual stock has the edge right now? Let’s take a closer look at both.
The Case for CAVA
CAVA’s differentiated Mediterranean platform and disciplined national expansion strategy position it as one of the strongest growth stories in the fast-casual category. Robust unit economics, accelerating new-restaurant productivity and targeted menu innovation continue to drive momentum, offsetting broader industry headwinds from softer traffic trends and inflationary pressures. In the second quarter of 2025, same-restaurant sales advanced 2.1% year over year, while new units delivered AUVs above $3 million, well ahead of long-term benchmarks, underscoring the scalability of the model.
Expansion remains the central pillar of management’s strategy. The company reaffirmed plans to open 68-70 new restaurants in 2025 and reiterated its long-term goal of reaching 1,000 locations by 2032. New units are producing outsized returns, supported by rigorous site selection, growing brand awareness, and strong digital engagement. With a debt-free balance sheet and $386 million in cash, CAVA maintains financial flexibility to reinvest in growth initiatives, loyalty enhancements, and operational efficiencies.
Menu and digital innovation are also proving accretive to comps. Recent launches such as chicken shawarma and salmon broaden the protein mix and appeal to a wider customer base, while upgrades to the loyalty program are designed to deepen engagement and drive frequency. These initiatives likely support both sustained traffic and long-term brand equity.
However, CAVA faces near-term earnings pressures from a choppy consumer environment, tariffs, and inflationary cost dynamics. These factors may weigh on its profitability in the near term.
The Case for SG
Sweetgreen is in the midst of a transitional phase aimed at restoring sales momentum and stabilizing profitability. At the center of its strategy are initiatives to strengthen store-level execution, optimize portioning and throughput, and scale its Infinite Kitchen model to deliver more consistent performance.
The company is rolling out “Project One Best Way,” a systemwide operational reset designed to tighten food preparation standards, reduce hold times, and improve service consistency. It is also expanding Infinite Kitchen restaurants, which have shown stronger average unit volumes, higher digital penetration, and lower labor intensity compared with traditional formats. Management believes this next-generation model can meaningfully improve capital efficiency while reinforcing Sweetgreen’s positioning as a modern, tech-enabled brand.
Despite these initiatives, Sweetgreen continues to face earnings headwinds from traffic softness and cost inflation. Same-restaurant sales declined 7.6% in the second quarter of 2025, pressured by weaker urban demand, loyalty program transition effects and a challenging comparison against last year’s menu launches. Restaurant-level margins also compressed, reflecting elevated food, labor, and packaging expenses, with management guiding to further pressure through year-end.
Traffic remains a key concern. Many units, particularly in dense urban markets, continue to underperform, driving management’s decision to consolidate or relocate certain stores. While new seasonal menu items and updated recipes have been well received, they have not yet offset broader declines in transaction volumes.
Structural challenges compound the near-term outlook. Higher tariffs, packaging costs and labor investments are weighing on execution, while the loyalty relaunch has introduced short-term disruption to engagement. The decision to revise margin guidance down and focus resources on Infinite Kitchen expansion underscores both the strain on unit economics and the company’s bet on technology-led recovery.
How Does the Zacks Consensus Estimate Compare for CAVA & SG?
The Zacks Consensus Estimate for CAVA’s 2025 sales and earnings per share (EPS) suggests year-over-year increases of 22.9% and 33.3%, respectively. Over the past 60 days, earnings estimates for 2025 have decreased by 3.5%.
CAVA Earnings Estimate Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SG’s 2025 sales and EPS suggests year-over-year increases of 5.5% and 10.1%, respectively. Over the past 60 days, earnings estimates for 2025 have decreased by 18.3%.
SG Earnings Estimate Trend
Image Source: Zacks Investment Research
Price Performance & Valuation of CAVA & SG Stock
CAVA stock has declined 15.3% in the past three months, underperforming its industry's fall of 5.4% and the S&P 500’s growth of 12.2%. Meanwhile, Sweetgreen shares have plunged 27.9% in the same time.
CAVA & SG Stock Three-Month Price Performance
Image Source: Zacks Investment Research
CAVA is trading at a forward 12-month price-to-sales (P/S) multiple of 5.34, above the industry average of 3.62 over the last year. CAVA warrants a premium valuation owing to its consistent profitability supported by a debt-free balance sheet as well as superior unit economics. The elevated multiple also signals that investors are pricing in continued strong execution, which could leave the stock vulnerable if growth or margins fall short of expectations.
Image Source: Zacks Investment Research
In contrast, Sweetgreen’s lower multiple of 1.29 appears less like a bargain and more like a reflection of muted expectations, as it underscores investor caution around negative comps, margin pressure, and uneven execution across its restaurant base. While the Infinite Kitchen format highlights long-term potential, these headwinds collectively signal a weaker near-term risk-return profile.
Our Take
At this juncture, CAVA appears better positioned to deliver consistent growth and profitability, supported by robust unit economics, disciplined expansion, and a strong balance sheet. While Sweetgreen’s Infinite Kitchen model offers intriguing long-term potential, its ongoing operational and margin challenges suggest that the turnaround will likely take time to materialize. Accordingly, CAVA represents the safer pick in the current environment (despite its premium valuation), as we believe there is room for growth supported by strong fundamentals and disciplined execution.
Image: Bigstock
CAVA vs. Sweetgreen: Which Fast-Casual Stock Has the Edge Right Now?
Key Takeaways
CAVA Group, Inc. (CAVA - Free Report) and Sweetgreen, Inc. (SG - Free Report) represent two distinct yet compelling approaches to the fast-casual healthy eating opportunity. CAVA is pioneering the Mediterranean category, with strong unit economics, profitable growth and rapid national expansion, while Sweetgreen is redefining modern fast food through seasonal menus, sustainability and automation with its Infinite Kitchen model.
The comparison between these two restaurant players becomes particularly relevant in today’s market environment, where investors are closely examining consumer discretionary stocks for resilience, profitability and long-term scalability.
The broader U.S. fast-casual market remains resilient, with total restaurant sales continuing to outpace pre-pandemic trends despite persistent traffic pressures. Operators have managed to keep food cost ratios largely in check even amid inflation and new tariff pressures, thanks to menu discipline, efficiency gains, and steady demand. Digital ordering, loyalty engagement and menu innovation remain key battlegrounds, while new store formats and automation are reshaping future growth trajectories.
Against this dynamic backdrop, both CAVA and Sweetgreen are adapting their models to capture evolving consumer preferences. But for investors, the central question remains: Which fast-casual stock has the edge right now? Let’s take a closer look at both.
The Case for CAVA
CAVA’s differentiated Mediterranean platform and disciplined national expansion strategy position it as one of the strongest growth stories in the fast-casual category. Robust unit economics, accelerating new-restaurant productivity and targeted menu innovation continue to drive momentum, offsetting broader industry headwinds from softer traffic trends and inflationary pressures. In the second quarter of 2025, same-restaurant sales advanced 2.1% year over year, while new units delivered AUVs above $3 million, well ahead of long-term benchmarks, underscoring the scalability of the model.
Expansion remains the central pillar of management’s strategy. The company reaffirmed plans to open 68-70 new restaurants in 2025 and reiterated its long-term goal of reaching 1,000 locations by 2032. New units are producing outsized returns, supported by rigorous site selection, growing brand awareness, and strong digital engagement. With a debt-free balance sheet and $386 million in cash, CAVA maintains financial flexibility to reinvest in growth initiatives, loyalty enhancements, and operational efficiencies.
Menu and digital innovation are also proving accretive to comps. Recent launches such as chicken shawarma and salmon broaden the protein mix and appeal to a wider customer base, while upgrades to the loyalty program are designed to deepen engagement and drive frequency. These initiatives likely support both sustained traffic and long-term brand equity.
However, CAVA faces near-term earnings pressures from a choppy consumer environment, tariffs, and inflationary cost dynamics. These factors may weigh on its profitability in the near term.
The Case for SG
Sweetgreen is in the midst of a transitional phase aimed at restoring sales momentum and stabilizing profitability. At the center of its strategy are initiatives to strengthen store-level execution, optimize portioning and throughput, and scale its Infinite Kitchen model to deliver more consistent performance.
The company is rolling out “Project One Best Way,” a systemwide operational reset designed to tighten food preparation standards, reduce hold times, and improve service consistency. It is also expanding Infinite Kitchen restaurants, which have shown stronger average unit volumes, higher digital penetration, and lower labor intensity compared with traditional formats. Management believes this next-generation model can meaningfully improve capital efficiency while reinforcing Sweetgreen’s positioning as a modern, tech-enabled brand.
Despite these initiatives, Sweetgreen continues to face earnings headwinds from traffic softness and cost inflation. Same-restaurant sales declined 7.6% in the second quarter of 2025, pressured by weaker urban demand, loyalty program transition effects and a challenging comparison against last year’s menu launches. Restaurant-level margins also compressed, reflecting elevated food, labor, and packaging expenses, with management guiding to further pressure through year-end.
Traffic remains a key concern. Many units, particularly in dense urban markets, continue to underperform, driving management’s decision to consolidate or relocate certain stores. While new seasonal menu items and updated recipes have been well received, they have not yet offset broader declines in transaction volumes.
Structural challenges compound the near-term outlook. Higher tariffs, packaging costs and labor investments are weighing on execution, while the loyalty relaunch has introduced short-term disruption to engagement. The decision to revise margin guidance down and focus resources on Infinite Kitchen expansion underscores both the strain on unit economics and the company’s bet on technology-led recovery.
How Does the Zacks Consensus Estimate Compare for CAVA & SG?
The Zacks Consensus Estimate for CAVA’s 2025 sales and earnings per share (EPS) suggests year-over-year increases of 22.9% and 33.3%, respectively. Over the past 60 days, earnings estimates for 2025 have decreased by 3.5%.
CAVA Earnings Estimate Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SG’s 2025 sales and EPS suggests year-over-year increases of 5.5% and 10.1%, respectively. Over the past 60 days, earnings estimates for 2025 have decreased by 18.3%.
SG Earnings Estimate Trend
Image Source: Zacks Investment Research
Price Performance & Valuation of CAVA & SG Stock
CAVA stock has declined 15.3% in the past three months, underperforming its industry's fall of 5.4% and the S&P 500’s growth of 12.2%. Meanwhile, Sweetgreen shares have plunged 27.9% in the same time.
CAVA & SG Stock Three-Month Price Performance
Image Source: Zacks Investment Research
CAVA is trading at a forward 12-month price-to-sales (P/S) multiple of 5.34, above the industry average of 3.62 over the last year. CAVA warrants a premium valuation owing to its consistent profitability supported by a debt-free balance sheet as well as superior unit economics. The elevated multiple also signals that investors are pricing in continued strong execution, which could leave the stock vulnerable if growth or margins fall short of expectations.
Image Source: Zacks Investment Research
In contrast, Sweetgreen’s lower multiple of 1.29 appears less like a bargain and more like a reflection of muted expectations, as it underscores investor caution around negative comps, margin pressure, and uneven execution across its restaurant base. While the Infinite Kitchen format highlights long-term potential, these headwinds collectively signal a weaker near-term risk-return profile.
Our Take
At this juncture, CAVA appears better positioned to deliver consistent growth and profitability, supported by robust unit economics, disciplined expansion, and a strong balance sheet. While Sweetgreen’s Infinite Kitchen model offers intriguing long-term potential, its ongoing operational and margin challenges suggest that the turnaround will likely take time to materialize. Accordingly, CAVA represents the safer pick in the current environment (despite its premium valuation), as we believe there is room for growth supported by strong fundamentals and disciplined execution.
CAVA currently carries a Zacks Rank #3 (Hold), while Sweetgreen has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.