Cava Group (NYSE: CAVA) was one of this year's hottest initial public offerings (IPO), but shares of the Mediterranean-style restaurant chain are down 11% from its first-day closing price. Starbucks (NASDAQ: SBUX) is the established leader in coffee chains, but it's growing at a slow pace.
It's a case of the new and hot vs. the old and secure. Which one of these restaurant stocks is the better buy today? Lets take a look.
The strong investor interest in Cava stock comes from a desire to get in on something before growth surges. Cava has momentum as it opens new stores and sales soar. In the 2023 second quarter, Cava's first as a public company, sales increased 62% over last year, the kind of growth that only a new and popular company can demonstrate.
Source Fool.com