Cava Group Outshines Dutch Bros with 162% Growth in 2024

Cava Group has shown remarkable performance in 2024, surging 162% compared to Dutch Bros at 65%. This growth raises questions on stock valuation as investors weigh long-term opportunities in both companies.

Date: 12-01-2025

AI Rating: 7

Current Performance Analysis
Cava Group (CAVA) reported exceptional growth with a 162% increase in stock price over 2024, outperforming Dutch Bros (BROS), which grew by 65%. Cava has exhibited stronger sales growth, showing 30% in Q1, 35.2% in Q2, and 39% in Q3, compared to Dutch Bros' declining growth from 39% in Q1 to 28% in Q3. Comparable sales growth also favors Cava, reflecting a higher consumer interest in its offerings.

Net Income and Store Growth
Cava's net income for Q1 was reported at $14 million, rising to $19.7 million in Q2 and $18 million in Q3, differing from Dutch Bros, which showed a net income of $16.2 million in Q1, $22.2 million in Q2, and $21 million in Q3. While Dutch Bros has a larger store footprint with 950 locations compared to Cava's 352, Cava has demonstrated higher unit sales per store.

Long-term Opportunities
Both companies have plans for substantial growth, targeting 4,000 stores for Dutch Bros and 1,000 for Cava by 2032. Cava's higher unit sales per restaurant positioning it for success with fewer needed locations highlights its competitive edge despite a smaller current footprint.

Cava's better performance may relate to its focus on higher-income consumers who continue to spend, whereas Dutch Bros' lower-priced offerings might struggle in tighter economic conditions. Cava's stock is currently viewed as more expensive based on valuation metrics, raising questions on potential future gains after significant past performance.

Stocks: CAVA BROS