NDLS vs CAVA vs CMG vs SHAK vs TXRH

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). Chipotle Mexican Grill, Inc. (CMG) offers the better valuation at 28. 5x trailing P/E (28. 6x forward), making it the more compelling value choice. Analysts rate CAVA Group, Inc. (CAVA) a "Buy" — based on 23 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, Chipotle Mexican Grill, Inc.

(CMG) is the cheapest at 28. 5x versus CAVA Group, Inc. at 147. 0x. On forward P/E, Texas Roadhouse, Inc. is actually cheaper at 28. 1x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Texas Roadhouse, Inc. wins at 0. 41x versus Chipotle Mexican Grill, Inc. 's 0. 81x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Texas Roadhouse, Inc.

(TXRH) delivered a total return of +85. 8%, compared to -86. 2% for Noodles & Company (NDLS). Over 10 years, the gap is even starker: TXRH returned +331. 7% versus NDLS's -85. 5%. 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), Noodles & Company (NDLS) is the lower-risk stock at 0.

57β versus Shake Shack Inc. 's 1. 81β — meaning SHAK is approximately 220% more volatile than NDLS 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 -8. 6% for Noodles & Company — 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 -1. 0% for NDLS. 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, Texas Roadhouse, Inc. (TXRH) is the more undervalued stock at a PEG of 0. 41x versus Chipotle Mexican Grill, Inc. 's 0. 81x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Texas Roadhouse, Inc. (TXRH) trades at 28. 1x forward P/E versus 150. 2x for CAVA Group, Inc. — 122. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NDLS: 278. 8% to $48. 00.

In this comparison, TXRH (1.

5% yield) pays a dividend. NDLS, CAVA, CMG, SHAK 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. 75), 1. 5% yield, +331. 7% 10Y return). Shake Shack Inc. (SHAK) carries a higher beta of 1. 81 — 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: +331. 7%, SHAK: +100. 7%), 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.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: NDLS is a small-cap quality compounder stock; CAVA is a small-cap quality compounder stock; CMG is a mid-cap quality compounder stock; SHAK is a small-cap high-growth stock; TXRH is a mid-cap quality compounder stock. TXRH pays a dividend while NDLS, CAVA, CMG, SHAK 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.