Comparing CAVA Group (NYSE:CAVA) & FAT Brands (NASDAQ:FAT)

FAT Brands (NASDAQ:FATGet Free Report) and CAVA Group (NYSE:CAVAGet Free Report) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FAT Brands and CAVA Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FAT Brands 0 0 1 0 3.00
CAVA Group 0 4 9 0 2.69

FAT Brands currently has a consensus price target of $15.00, suggesting a potential upside of 63.04%. CAVA Group has a consensus price target of $48.20, suggesting a potential downside of 10.21%. Given FAT Brands’ stronger consensus rating and higher possible upside, equities analysts plainly believe FAT Brands is more favorable than CAVA Group.

Profitability

This table compares FAT Brands and CAVA Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FAT Brands -31.64% N/A -7.97%
CAVA Group -1.12% -13.72% -0.97%

Insider & Institutional Ownership

6.3% of FAT Brands shares are owned by institutional investors. Comparatively, 61.8% of CAVA Group shares are owned by institutional investors. 11.8% of FAT Brands shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares FAT Brands and CAVA Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FAT Brands $407.22 million 0.35 -$126.19 million ($8.36) -1.10
CAVA Group $564.12 million 10.81 -$58.99 million N/A N/A

CAVA Group has higher revenue and earnings than FAT Brands.

Summary

CAVA Group beats FAT Brands on 7 of the 11 factors compared between the two stocks.

About FAT Brands

(Get Free Report)

FAT Brands Inc., a multi-brand restaurant company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse / Bonanza Steakhouse, Native Grill & Wings, and Twin Peaks. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. operates as a subsidiary of Fog Cutter Holdings, LLC.

About CAVA Group

(Get Free Report)

CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company offers salads, dips, spreads, toppings, and dressings. It sells its products through whole food markets and grocery stores. The company also provides online food ordering services. Cava Group, Inc. was founded in 2006 and is based in Washington, District of Columbia.

Receive News & Ratings for FAT Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FAT Brands and related companies with MarketBeat.com's FREE daily email newsletter.