The Investment Thread

The restaurants Cava and Portillo’s just published their annual reports within a day of each other. I’m not terribly good at interpreting financial results… but it’s crazy how different the market values them. Both emerging chains.

Annual revenue:
Cava: $717 million
Portillo’s: $680 million

Net income
Cava: $13.2 million
Portillo’s: $24.8 million

Store numbers
Cava: 309
Portillo’s: 84

Total assets:
Cava: $983 million
Portillo’s: $1.38 billion

Debt:
Cava: $342 million
Portillo’s: $300 million

Market capitalization:
Cava: $6.46 billion
Portillo’s: $1.12 billion

Yeah, that's pretty interesting. Portillo's seems the better value by a significant margin. I just read their plan is for 920 stores over 20 years - that's a lot of planned growth. Cava is adding about 50 stores a year so the rate is reasonable, but Portillo's looks more appealing on a per unit basis. But your chart doesn't show margin/profit.