CAVA Group, Inc. (CAVA)vsYum! Brands Inc (YUM)
CAVA
CAVA Group, Inc.
$54.87
-1.81%
CONSUMER CYCLICAL · Cap: $6.53B
YUM
Yum! Brands Inc
$140.87
-2.10%
CONSUMER CYCLICAL · Cap: $40.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 535% more annual revenue ($8.72B vs $1.37B). YUM leads profitability with a 25.4% profit margin vs 4.8%. YUM appears more attractively valued with a PEG of 1.90. YUM earns a higher WallStSmart Score of 65/100 (C+).
CAVA
Hold45
out of 100
Grade: D+
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+1.1%
Fair Value
$56.48
Current Price
$54.87
$1.61 discount
Margin of Safety
-78.4%
Fair Value
$89.16
Current Price
$140.87
$51.71 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 31.3% year-over-year
Strong operational efficiency at 32.8%
Earnings expanding 131.6% YoY
Conservative balance sheet, low leverage
Keeps 25 of every $100 in revenue as profit
Areas to Watch
Grey zone — moderate risk
ROE of 7.6% — below average capital efficiency
4.8% margin — thin
Weak financial health signals
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CAVA
The strongest argument for CAVA centers on Revenue Growth. Revenue growth of 31.3% demonstrates continued momentum.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.8%. Revenue growth of 12.2% demonstrates continued momentum.
Bear Case : CAVA
The primary concerns for CAVA are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 96.3x leaves little room for execution misses. Thin 4.8% margins leave little buffer for downturns.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.
Key Dynamics to Monitor
CAVA profiles as a hypergrowth stock while YUM is a mature play — different risk/reward profiles.
CAVA carries more volatility with a beta of 1.74 — expect wider price swings.
CAVA is growing revenue faster at 31.3% — sustainability is the question.
YUM generates stronger free cash flow (407M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 45/100), backed by strong 25.4% margins and 12.2% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
CAVA Group, Inc.
CONSUMER CYCLICAL · RESTAURANTS · USA
CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company is headquartered in Washington, District of Columbia.
Visit Website →Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
Compare with Other RESTAURANTS Stocks
Want to dig deeper into these stocks?