CMG vs SFM vs SHAK vs TXRH vs CAVA

For growth investors, Shake Shack Inc.

(SHAK) is the stronger pick with 15. 4% revenue growth year-over-year, versus -12. 0% for CAVA Group, Inc. (CAVA). Sprouts Farmers Market, Inc. (SFM) offers the better valuation at 15. 3x trailing P/E (14. 5x forward), making it the more compelling value choice. Analysts rate Chipotle Mexican Grill, Inc. (CMG) a "Buy" — based on 67 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Sprouts Farmers Market, Inc.

(SFM) is the cheapest at 15. 3x versus CAVA Group, Inc. at 156. 5x. On forward P/E, Sprouts Farmers Market, Inc. is actually cheaper at 14. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Chipotle Mexican Grill, Inc. wins at 0. 83x versus Texas Roadhouse, Inc. 's 1. 17x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Sprouts Farmers Market, Inc.

(SFM) delivered a total return of +213. 8%, compared to -22. 6% for Shake Shack Inc. (SHAK). Over 10 years, the gap is even starker: TXRH returned +288. 0% versus CAVA's +93. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Sprouts Farmers Market, Inc.

(SFM) is the lower-risk stock at 0. 17β versus CAVA Group, Inc. 's 1. 83β — meaning CAVA is approximately 964% more volatile than SFM relative to the S&P 500. On balance sheet safety, CAVA Group, Inc. (CAVA) carries a lower debt/equity ratio of 60% versus 3% for Chipotle Mexican Grill, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Shake Shack Inc.

(SHAK) is pulling ahead at 15. 4% versus -12. 0% for CAVA Group, Inc. (CAVA). On earnings-per-share growth, the picture is similar: Shake Shack Inc. grew EPS 354. 2% year-over-year, compared to -50. 9% for CAVA Group, Inc.. Over a 3-year CAGR, SHAK leads at 17. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Chipotle Mexican Grill, Inc.

(CMG) is the more profitable company, earning 12. 9% net margin versus 3. 2% for Shake Shack Inc. — meaning it keeps 12. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CMG leads at 16. 9% versus 5. 9% for SHAK. At the gross margin level — before operating expenses — CAVA leads at 67. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Chipotle Mexican Grill, Inc. (CMG) is the more undervalued stock at a PEG of 0. 83x versus Texas Roadhouse, Inc. 's 1. 17x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Sprouts Farmers Market, Inc. (SFM) trades at 14. 5x forward P/E versus 161. 5x for CAVA Group, Inc. — 147. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHAK: 74. 6% to $120. 89.

In this comparison, TXRH (1.

7% yield) pays a dividend. CMG, SFM, SHAK, CAVA do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Texas Roadhouse, Inc.

(TXRH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 70), 1. 7% yield, +288. 0% 10Y return). CAVA Group, Inc. (CAVA) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TXRH: +288. 0%, CAVA: +93. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (CMG (Consumer Cyclical) and SFM (Consumer Defensive) and SHAK (Consumer Cyclical) and TXRH (Consumer Cyclical) and CAVA (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: CMG is a mid-cap quality compounder stock; SFM is a small-cap deep-value stock; SHAK is a small-cap high-growth stock; TXRH is a mid-cap quality compounder stock; CAVA is a small-cap quality compounder stock. TXRH pays a dividend while CMG, SFM, SHAK, CAVA do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.