Award-Winning Burger Chain Unveils Smash Style Burger with a Twist for Limited-Time LOS ANGELES, Feb. 05, 2026 (GLOBE NEWSWIRE) -- Fatburger, the all-American burger chain owned by FAT Brands Inc., is sizzling with the addition of a new burger to its menu line-up, the Flatburger. Available now through June 30 at participating locations, the latest burger creation further underscores the brand’s commitment to delivering flat-out delicious, high-quality offerings to its fans. The Flatburger is loaded with fla ...

We came across a bullish thesis on Chipotle Mexican Grill, Inc. on Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we will summarize the bulls’ thesis on CMG. Chipotle Mexican Grill, Inc.'s share was trading at $39.16 as of January 28th. CMG’s trailing and forward P/E were 35.09 and 33.22 respectively according to Yahoo Finance. Copyright: andreyst / 123RF Stock Photo Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill rest ...

Core Viewpoint - Chipotle Mexican Grill, Inc. (CMG) and Sweetgreen, Inc. (SG) represent contrasting approaches within the fast-casual dining sector, with CMG focusing on stability and cash generation, while SG emphasizes growth through technology and innovation [1][2]. Group 1: Chipotle Mexican Grill (CMG) - Chipotle's growth strategy is centered on disciplined unit expansion, aiming for 7,000 restaurants, supported by strong new-unit productivity and minimal cannibalization [3]. - The company is enhancing operational execution through high-efficiency kitchen equipment, leading to improved labor efficiency and guest satisfaction [4]. - Menu innovation and digital engagement are key drivers, with limited-time offerings and loyalty initiatives boosting customer engagement without heavy discounting [5]. - Despite strengths, Chipotle faces near-term challenges from macro-driven traffic softness, particularly among lower and middle-income consumers [6]. Group 2: Sweetgreen, Inc. (SG) - Sweetgreen is undergoing a transformation with a focus on operational excellence and brand relevance, as outlined in its Sweet Growth Transformation Plan [7]. - The company is committed to menu quality and differentiation, with new protein-forward offerings and a reassessment of menu pricing to enhance customer value [8][10]. - Financial flexibility has improved following the sale of the Spyce automation unit, expected to add approximately $100 million in liquidity and reduce annual G&A expenses [11]. - However, Sweetgreen's near-term fundamentals are under pressure, with significant same-store sales declines and margin erosion due to higher costs and weaker demand [12]. Group 3: Financial Performance and Valuation - The Zacks Consensus Estimate for Chipotle indicates a 9.8% increase in sales and a 4.2% increase in earnings per share (EPS) for 2026 [13]. - In contrast, Sweetgreen's estimates imply a 9.4% increase in sales but a wider loss in EPS for 2026 [15]. - Chipotle's shares have decreased by 10.7% over the past three months, while Sweetgreen's stock has dropped 50.9%, against an industry decline of 0.9% [17]. - Chipotle trades at a forward price-to-sales (P/S) multiple of 3.97, above the industry average of 3.66, while Sweetgreen's P/S multiple is 1.02 [18]. Group 4: Conclusion - The comparison favors Chipotle, which is navigating a cautious consumer environment from a position of strength, with proven unit economics and operational improvements [21]. - Sweetgreen is still in a multi-year turnaround phase, facing execution challenges and traffic pressures that make its recovery less predictable [22].

Group 1 - Chipotle Mexican Grill is positioned as a leading player in the fast-casual dining sector, competing with Sweetgreen, which focuses on health-conscious salads and bowls [1] - Chipotle is considered a better long-term investment due to its attractive valuation with a price-to-earnings ratio of 35.7 and strong brand recognition [2] - Despite recent challenges, Chipotle's operating margin was reported at 15.9% for Q3 2025, and the company continues to open new locations, indicating future revenue growth [4] Group 2 - Sweetgreen is forecasted to experience a same-store sales decline of 8.1% in fiscal 2025, while Chipotle's decline is expected to be in the low single digits [3] - Chipotle's brand strength and scale provide significant growth potential, making it a more favorable investment compared to Sweetgreen, which is currently not profitable [6]

Core Viewpoint - Shake Shack Inc. is experiencing a shift in its operational model and is viewed positively by analysts, with upgrades in ratings and price targets indicating potential growth opportunities in the fast-casual dining sector [1][3][4]. Group 1: Analyst Ratings and Price Targets - JPMorgan upgraded Shake Shack's rating from Underweight to Neutral but reduced its price target from $95 to $90 following discussions with the CEO [1]. - Freedom Capital Markets initiated coverage with a Buy rating and set a price target of $120, highlighting the brand's unique position in the better-burger market [3]. Group 2: Operational Changes and Growth Potential - The company is transitioning from a fine casual dining concept to a more efficient operation incorporating quick-service restaurant features, aiming for positive free cash flow while blending the strengths of both models [2]. - There is significant growth potential, with estimates suggesting around 1,500 locations in North America compared to approximately 400 current locations as of Q3 2025 [4]. Group 3: Sales Performance and Market Sentiment - Analysts believe that concerns regarding the company's performance are exaggerated, with expectations of a rebound in same-store sales in November and December [4].

Industry Overview - Fast-casual dining is projected to be a significant growth area in the restaurant industry by 2026, offering a blend of affordable prices and higher quality, leading to faster growth than full-service restaurants and better margins than traditional fast-food chains [1] - The success threshold is increasing, with only concepts that have loyal followings, smart expansion strategies, and improving unit economics likely to succeed [2] Breakout Restaurant Stock Definition - A breakout restaurant stock is characterized by its ability to grow units while maintaining traffic, protecting margins, and building long-term brand equity, with a focus on revenue growth driven by guest count rather than just pricing [3] Key Companies to Watch - **CAVA Group, Inc.**: Recognized for its scalable concept and strong unit economics, CAVA is expanding beyond coastal areas while maintaining high average unit volumes. The company aligns with health-conscious trends and has a disciplined expansion strategy [5][6] - **Sweetgreen, Inc.**: Known for its health-focused offerings and strong brand identity, Sweetgreen is working on improving efficiency and selective unit growth. The company needs to reignite same-store sales momentum to achieve breakout status [9][10] - **Wingstop Inc.**: Wingstop's growth is driven by a franchised model and digital-first approach, but it faces challenges with same-store sales fluctuations. Its breakout potential in 2026 depends on traffic normalization and continued store openings [12][13] - **Dutch Bros Inc.**: This beverage-led company has a strong following among younger consumers and benefits from a drive-thru model. Dutch Bros has significant expansion potential and could achieve notable growth if execution remains disciplined [16][17] Financial Projections - **CAVA**: Projected 2026 sales growth of 21.1% and earnings growth of 11.3%, with a recent stock increase of 14.8% [7] - **Sweetgreen**: Expected sales increase of 13.3% and earnings growth of 15.5%, with a stock surge of 26.9% recently [11] - **Wingstop**: Anticipated sales growth of 17.9% and earnings growth of 21.9%, with a recent stock gain of 5.5% [13] - **Dutch Bros**: Forecasted sales growth of 24.2% and earnings growth of 27.9%, with a recent stock increase of 17.4% [17] Conclusion - The most likely breakout candidate for 2026 is CAVA, which balances expansion with profitability, supported by strong unit economics and growth potential. Dutch Bros presents a compelling alternative, while Sweetgreen and Wingstop are more sensitive to execution and demand trends [18][19]

Core Insights - Chipotle Mexican Grill (NYSE: CMG) has demonstrated exceptional stock performance, increasing by 3,480% since its IPO despite experiencing significant declines, including a 50% drop from its peak late last year [1] - The company has faced multiple downturns, notably a 74% decline during the 2008 financial crisis, which ultimately presented a strong buying opportunity [5][6] - Current market conditions have led to a 53.5% decline in Chipotle's stock, attributed to flat comparable sales and high valuations [5] Chipotle's Historical Performance - In 2008, Chipotle had 837 restaurants and generated $1.33 billion in revenue, with a net income of $78.2 million [4] - Comparable sales decreased from 10.8% in 2007 to 5.8% in 2008, further declining to less than 4% in the latter half of the year [4] - The stock's price-to-sales (P/S) ratio fell to 1.5 by the end of 2008, hitting a low of 1 before recovering [6] Current Market Context - Sweetgreen (NYSE: SG), a fast-casual salad company, is currently facing challenges similar to those Chipotle experienced in the past, with an 85% decline from its peak in late 2024 [5][7] - Sweetgreen's comparable sales have decreased, and its losses have widened, reflecting broader weaknesses in restaurant spending [7]

Core Insights - The fast-casual restaurant sector has potential for growth, needing more investors and a compelling narrative to attract Wall Street interest [1] Company Insights - The research firm Goulart's Restaurant Stocks specializes in the U.S. restaurant industry, covering various segments from quick-service to fine dining [2] - The firm employs advanced financial modeling and sector-specific KPIs to identify hidden value in public equities, particularly focusing on micro and small-cap companies [2] Analyst Background - The founder of Goulart's Restaurant Stocks has a strong academic background with an MBA in Controllership and Accounting Forensics, and a Bachelor's in Business Administration [2] - The founder has practical experience in finance and business management, including a brief stint as a franchise partner for a regional ice cream shop [2]

Group 1 - Darden Restaurants, the parent company of Olive Garden and LongHorn Steakhouse, has experienced a decline in stock value following its fiscal first-quarter earnings report [2] - The company was previously viewed as a strong performer in the fast-casual dining sector [2] - Executives within the company are reportedly selling shares amid the stock slump [2]

Core Insights - FAT Brands Inc. is set to open four Fatburger locations in Okinawa, Japan over the next five years, with the first opening anticipated by the end of 2025 [1][2] - The strategic decision to enter Okinawa is driven by its strong tourism and consistent foot traffic from military bases, indicating a targeted approach to market entry [2] Company Overview - FAT Brands is a global franchising company that owns and operates 18 restaurant brands, including Fatburger, and has over 2,300 units worldwide [4] - The company focuses on acquiring, marketing, and developing various dining concepts, ranging from fast casual to polished casual dining [4] Product Offering - Fatburger is known for its customizable burgers, which can include a wide range of toppings beyond the standard options, as well as a diverse menu featuring fries, onion rings, and hand-scooped milkshakes [2][5] - The brand has a legacy of over 70 years, emphasizing quality and customer satisfaction, which has garnered a loyal customer base [5]