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Better Buy: Cava vs. McDonald's


If you are looking at the restaurant space and trying to find a good stock to add to your portfolio, you'll likely be considering industry giant McDonald's (NYSE: MCD). But what about fast-growing and newly public Cava Group (NYSE: CAVA)? This isn't exactly a David versus Goliath battle, since the two companies operate in different niches of the restaurant world, but it is certainly a big, established company versus a tiny newbie. There are pros and cons to each. Let's review.

If you are a conservative investor, you will almost certainly prefer McDonald's over Cava. For starters, McDonald's has a time-tested concept that serves basic staples in the restaurant space (burgers, soda, and fries). It is highly unlikely that its food offerings will go out of style anytime soon. 

Image source: Getty Images.

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Source Fool.com

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