Love Chipotle Mexican Grill and Cava? This Small Restaurant Stock Might Have Higher Long-Term Upside
Chipotle Mexican Grill (NYSE: CMG) is a restaurant chain specializing in burritos that now has over 3,400 locations. For its part, Mediterranean chain Cava Group (NYSE: CAVA) is much smaller, with only a little more than 300 locations. These two chains differ greatly in size and cuisine. But for investors, they have important similarities.
First, the management teams of both believe they have plenty of room for expansion. Despite its spectacular growth over the last decade, Chipotle CEO Brian Niccol hopes to more than double its number of locations. Cava's management hopes to more than triple its footprint. Those are big growth targets for investors to salivate over.
Second, Chipotle and Cava are unusually popular with diners. To illustrate, Cava restaurants average $2.6 million in annual sales volume and Chipotle restaurants average $3 million. These are industry-leading numbers already and they're still going up. Both enjoyed same-restaurant-sales growth in 2023.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is one of the favorites of our community with 70 Buy predictions and 1 Sell predictions.
With a target price of 2478 € there is potential for a 5300.46% increase which would mean more than doubling the current price of 45.89 € for Chipotle Mexican Grill Inc..
