Core Insights - CAVA Group, Inc. and Sweetgreen, Inc. represent two distinct approaches to the fast-casual healthy eating market, with CAVA focusing on Mediterranean cuisine and Sweetgreen emphasizing sustainability and automation [1][4] Industry Overview - The U.S. fast-casual market remains resilient, with total restaurant sales outpacing pre-pandemic trends despite traffic pressures [3] - Operators have maintained food cost ratios amid inflation through menu discipline and efficiency gains [3] - Digital ordering, loyalty engagement, and menu innovation are critical for future growth [3] CAVA's Position - CAVA's Mediterranean platform and disciplined expansion strategy position it as a strong growth story, with same-restaurant sales increasing by 2.1% year-over-year in Q2 2025 [5][6] - Plans to open 68-70 new restaurants in 2025, aiming for 1,000 locations by 2032, supported by a debt-free balance sheet and $386 million in cash [6] - Menu innovations and digital enhancements are driving customer engagement and traffic [7] Sweetgreen's Challenges - Sweetgreen is undergoing a transitional phase to restore sales momentum, focusing on operational improvements and its Infinite Kitchen model [9][10] - Same-restaurant sales declined by 7.6% in Q2 2025, impacted by urban demand and a challenging comparison against previous menu launches [12] - The company faces structural challenges, including higher tariffs and labor costs, which are affecting profitability [14] Financial Performance - CAVA's 2025 sales and EPS estimates suggest increases of 22.9% and 33.3%, respectively, while Sweetgreen's estimates indicate increases of 5.5% and 10.1% [15][19] - CAVA stock has declined by 15.3% over the past three months, while Sweetgreen shares fell by 27.9% [21] - CAVA trades at a forward P/S multiple of 5.34, reflecting strong profitability and unit economics, while Sweetgreen's lower multiple of 1.29 indicates muted expectations [23][26] Conclusion - CAVA is better positioned for consistent growth and profitability, supported by strong fundamentals and disciplined execution, while Sweetgreen's operational challenges suggest a longer turnaround period [27]