Both Cava and Dutch Bros have big expansion opportunities ahead.
However, one stock is much cheaper than the other and has a bigger overall opportunity.
Two of the restaurant concepts with the best expansion opportunities right now are Cava Group (NYSE: CAVA) and Dutch Bros (NYSE: BROS). However, one clearly looks like the better stock to own for the long term. Let's dig into both stocks to see which is the better one to buy.
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Cava is a fast-growing fast-casual restaurant focused on Mediterranean cuisine. The company saw huge same-store sales growth following the introduction of grilled steak in 2024. However, its strong comparable restaurant sales growth came to a screeching halt after it overlapped the introduction of this popular menu item. Those tough comparisons are finally behind the company, and it is forecasting 3% to 5% same-store sales growth this year. Meanwhile, the introduction of salmon could be its next growth driver.
The overall fast casual market, however, has been tough, as there has been some consumer pushback against the so-called "slop bowl" trends popularized by Chipotle Mexican Grill. Meanwhile, fast casual chains have been squeezed in the middle, as high prices have led many consumers to seek value from fast-food operators, while casual dining chains have recently upped their game with more attractively priced options.
Nonetheless, with 439 locations as of the end of 2025 and plans to reach 1,000 stores, Cava has a solid growth runway ahead.
Coffee shop operator Dutch Bros has been seeing strong same-store sales growth, driven by its popular beverage lineup, introduction of mobile order-ahead, and increased brand awareness. Meanwhile, it is in the midst of expanding new, hot food items across many of its stores, which has been giving these stores a 4% same-store sales lift.
With 1,136 stores across 25 states at the end of 2025, Dutch Bros has a big expansion opportunity ahead. It plans to have 2,029 stores by 2029 and believes it can support around 7,000 in the U.S. over the long haul. Meanwhile, its small shops are relatively inexpensive to build and have quick returns on investments.
Both Cava and Dutch Bros are growing quickly and have strong opportunities ahead. However, valuation matters, and Dutch Bros trades at less than half the valuation of Cava on both price-to-sales (3.6 times vs 7.6 times) and forward P/E (63.5 times vs 179 times) multiples.
On top of that, Dutch Bros appears to have the bigger opportunity. It is looking to support 7,000 locations long term versus 2,000 for Cava. While Cava has higher AUVs (average unit volumes) of $2.9 million versus $2.1 million for Dutch Bros, the overall sales opportunity for Dutch Bros is much larger. Together with a much cheaper valuation, that makes Dutch Bros the stock to own.
Geoffrey Seiler has positions in Dutch Bros. The Motley Fool has positions in and recommends Cava Group, Chipotle Mexican Grill, and Dutch Bros. The Motley Fool recommends the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.