If you bought Cava Group (NYSE: CAVA) stock somewhere near its 52-week lows late last year, you likely understood something important: The best restaurant stocks don’t get rewarded for what they’re doing today or for what the culture sees them as. They get rewarded for their store count growth rate and for what the market thinks their comparable-store sales could look like in five years. Already, the market has begun to reevaluate Cava — it’s up by more than 100% from its November low.
That same lens should be applied to three other restaurant chains that are trading well below where their long-term trajectories suggest they should be.
Image source: Getty Images.
These beaten-down restaurant chains are modeling some of the tactics that previously brought some success to Cava.
If you bought Cava Group (CAVA +1.19%) stock somewhere near its 52-week lows late last year, you likely understood something important: The best restaurant stocks don’t get rewarded for what they’re doing today or for what the culture sees them as. They get rewarded for their store count growth rate and for what the market thinks their comparable-store sales could look like in five years. Already, the market has begun to reevaluate Cava — it’s up by more than 100% from its November low.
That same lens should be applied to three other restaurant chains that are trading well below where their long-term trajectories suggest they should be.
Image source: Getty Images.
1. Dutch Bros: A coffee drive-thru disrupter that’s still in its early innings
Dutch Bros (BROS +0.58%) trades around $57 per share — more than 25% below its 52-week high — even though it posted its 11th consecutive quarter of earnings beats in Q4 2025. The company opened 55 new shops in that quarter alone and plans to open 181 new locations in 2026, with 2026 revenue guidance of $2 billion to $2.03 billion and comparable sales growth of 3% to 5%. (Its Q1 results are due out May 6.)
What makes Dutch Bros unusual isn’t just the (really good) coffee; it’s the data infrastructure underneath it. The company’s rewards program feeds a digital flywheel that uses analytics and personalized marketing to drive repeat visits. In Q3, same-store sales grew 5.7% systemwide, powered by 4.7% transaction growth. While many restaurant industry operators have been losing traffic, Dutch Bros is adding it. I’m a big fan of repeat customers on everyday purchases like coffee.
Dutch Bros
Today’s Change
(0.58%) $0.33
Current Price
$57.17
The company is also rolling out an “order ahead” feature in 2026 and leaning into its food segment. Management’s long-term ambition is to have 7,000 stores in operation, up from roughly 950 today. This is an early innings story hiding inside a mid-cap stock.
2. Cheesecake Factory: A casual dining stock that refuses to quit
Among investors, the Cheesecake Factory (CAKE +3.10%) is one of the most consistently overlooked large-format casual dining operators. The stock has delivered total returns of roughly 28% over the past year. The company has generated strong multiyear returns in an environment where many sit-down dining establishments struggled. Its ability to command high average checks, sustain repeat visits, and expand internationally through its North Italia chain and an array of smaller brands it’s testing through its Fox Restaurant Concepts subsidiary gives it a more diversified revenue base than the ticker name suggests.
Cheesecake Factory
Today’s Change
(3.10%) $1.84
Current Price
$61.13
Beware, though: An executive at The Cheesecake Factory, Spero Alex, sold about $316,000 worth of stock last month, completely exiting his indirect holdings while retaining some restricted stock units. Insider selling — especially a full exit — can be a red flag.
3. Sweetgreen: Still early for most, which is the point
Sweetgreen (SG +1.34%) stock is not for everyone. It’s trading below $7, down roughly 85% from its 3-year high. The company is not profitable. But Sweetgreen is doing something structurally important. It is using its proprietary Infinite Kitchen, which is a robotic salad assembly system, to attack a key expense line: labor costs. Locations where it has installed the salad-making robots have demonstrated faster throughput and lower costs. The company is also planning 15 to 20 net new restaurant openings in 2026.
Sweetgreen
Today’s Change
(1.34%) $0.09
Current Price
$6.82
With those facts in mind, RBC Capital’s Logan Reich recently reiterated his buy rating on the stock. My take on Sweetgreen mirrors how I viewed Cava in the past and how I currently view Dutch Bros. The company is building a growing brand and is trying to build up a loyal base of repeat customers that should become increasingly valuable over time.
Granted, Sweetgreen is nowhere near as close in repeats as the likes of Cava, but if its robots can keep costs and overhead low, it has a clear path to more store expansion and potential upside in the stock. This stock is a buy for investors who are ready to hold it for the long term.
