Cava Group vs Shake Shack
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KIRAβs take AI analyst
I put Cava Group and Shake Shack side by side, using each oneβs latest annual report. Here is what stands out:
- Shake Shack is the larger business, with $1.4B of revenue in fiscal 2025 against $1.2B for Cava Group.
- Cava Group grew revenue faster (22.4%, against 15.4%).
- Shake Shack turned more of its sales into free cash flow (3.9% FCF margin, against 2.2%).
- Cava Group earned a higher return on the capital invested in it (13.9%, against 9.6%).
- Investors pay more for each dollar of Cava Groupβs earnings: a P/E of 94.3x against 67.9x for Shake Shack.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Cava Group
CAVA
5/9
Revenue growthOperating marginNet marginReturn on capitalNet debt / EBITDA
Shake Shack
SHAK
4/9
FCF marginReturn on equityPiotroski F-scoreShare count change
Side by side
Best in the row
| Latest fiscal year | CAVA FY25 | SHAK FY25 |
|---|---|---|
| Size | ||
| Market cap | $6.1B | $2.7B |
| Revenue | $1.2B | $1.4B |
| Free cash flow | $26.1M | $56.5M |
| Net income | $63.7M | $45.7M |
| Growth | ||
| Revenue growth | 22.4% | 15.4% |
| 5-year growth | β | 22.6% |
| Share count change | 0.0% | β5.3% |
| Profitability | ||
| Gross margin | β | β |
| Operating margin | 4.7% | 4.3% |
| Net margin | 5.4% | 3.2% |
| FCF margin | 2.2% | 3.9% |
| Return on capital | 13.9% | 9.6% |
| Return on equity | 8.6% | 9.2% |
| Balance sheet | ||
| Net debt | β$393M | β$96.7M |
| Net debt / EBITDA | β3.1x | β0.6x |
| Dividends and buybacks | $0.0M | $0.0M |
| Valuation & quality | ||
| P/E | 94.3x | 67.9x |
| Piotroski F-score | 4 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.