CAVA grew revenue 19.9% but net income fell 17.9% as restaurant-level margin compressed to 24.6% from 25.6%.
Chipotle maintains 16.1% operating margin versus CAVA’s 6.3% and trades at 30x earnings compared to CAVA’s 45.8x.
Chipotle deployed $686.5M on buybacks in Q3 while CAVA targets 1,000 locations by 2032 from its current base.
If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here
CAVA Group (NYSE: CAVA) and Chipotle Mexican Grill (NYSE: CMG) both reported Q3 2025 earnings in late October and early November. CAVA posted 19.9% revenue growth but missed EPS estimates by 7.7%, while Chipotle grew revenue 7.5% and met expectations despite margin pressure.
CAVA delivered $292.24 million in revenue, narrowly beating estimates, with same-store sales up 1.9%. The company opened 17 new restaurants and maintained a 37.6% digital mix. Restaurant-level margin compressed to 24.6% from 25.6% a year earlier, driven by higher food, beverage, packaging, and labor costs. Net income fell 17.9% year-over-year to $14.75 million. CEO Brett Schulman emphasized “market share growth” and reinforcing the brand’s “value proposition.”
Chipotle generated $3.0 billion in revenue, slightly missing estimates, with comp sales up 0.3%. The company opened 84 locations, 64 with Chipotlane drive-through formats. Operating margin declined to 15.9% from 16.9%, pressured by labor costs. Net income slipped 1.4% to $382.1 million. CEO Scott Boatwright acknowledged “persistent macroeconomic pressures” but highlighted the brand’s “extraordinary value proposition.” Chipotle’s operating margin remains 2.6 times higher at 16.1% versus 6.3%.
This infographic compares the Q3 2025 earnings of CAVA Group and Chipotle Mexican Grill, illustrating CAVA’s high growth potential against CMG’s mature stability and operational efficiency.
Metric | CAVA | CMG |
Revenue Growth YoY | 19.9% | 7.5% |
Operating Margin | 6.3% | 16.1% |
Same-Store Sales | +1.9% | +0.3% |
Digital Mix | 37.6% | 36.7% |
CAVA is betting on aggressive expansion, targeting 1,000 locations by 2032 from its current base. The Mediterranean fast-casual concept appeals to health-conscious consumers, and the company is gaining market share. But profitability lags. With a 12.1% profit margin and 6.3% operating margin, CAVA is still building operational efficiency. The company trades at 45.8x trailing earnings and 101x forward earnings, pricing in substantial future growth despite recent earnings declines.
