CAVA Group and Chipotle Mexican Grill reported Q3 2025 earnings; CAVA grew revenue 19.9% but net income fell 17.9%, while Chipotle maintained a 16.1% operating margin. Chipotle deployed $686.5M on buybacks in Q3, targeting 315-345 new restaurants in 2025. Both face rising labor expenses due to wage inflation.

CAVA posted $292.24M in revenue, up 1.9% in same-store sales, but net income fell 17.9%. Chipotle generated $3.0B in revenue, comp sales up 0.3%. CAVA has a 12.1% profit margin and 6.3% operating margin, while Chipotle boasts a 13.0% profit margin and 16.1% operating margin.

CAVA plans to open 1,000 locations by 2032, appealing to health-conscious consumers. The stock trades at 45.8x earnings. Chipotle focuses on Chipotlane format, planning 315-345 new restaurants in 2025. The stock trades at 30x earnings and 28x forward earnings, boasting a 16.1% operating margin.

CAVA’s 19.9% revenue growth appeals to growth-focused investors, while Chipotle’s steady growth and superior margins attract stability-focused investors. Both stocks hit oversold levels in November. Key factors to monitor include CAVA’s margin stabilization and Chipotle’s Chipotlane format impact on comp sales.

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