We've compiled it recently Buy 12 Best Fast Food Stocks Now. In this article, we will explore Cava Group, Inc. (NYSE:CAVA) position against other fast food stocks.
Fast food stocks are companies that operate fast service restaurants. These stocks may be a smart choice to invest in the restaurant industry, which tends to perform well even during the economic downturn due to their low cost and convenience. For example, the Covid-19-19 pandemic has detrimented to the overall restaurant business, but fast food chains that are able to provide curbside pickups, delivery and drive-through services perform better than competitors who rely on dining. There is less risk in challenging economic situations, as many fast food restaurants offer great value first.
According to the research report, the global fast food market has gradually expanded in recent years. Its annual growth rate (CAGR) grew at 2.9%, from $645.2 billion in 2024 to $663.92 billion in 2025. Changes in customer choice and lifestyle, rapid urbanization, globalization, greater demand for convenient meals, and the growth of the working population will lead to a long-standing expansion. The largest region in the fast food market in 2024 is North America. The Asia-Pacific region is expected to be the fastest growing region in the forecast period.
Automation is changing the fast food service business in the United States. Robotic systems and artificial intelligence tools are now reducing production time and increasing efficiency. Due to the new beverage system, complex beverage preparation time has been reduced from 87 seconds to just 36 seconds. Meanwhile, the double-sided grill accelerates cooking by 70% in large capacity positions, while the avocado-treated robot reduces preparation time by 50%. According to a study by the National Restaurant Association released in February 2023, 58% of restaurant operators expect the use of technology and automation will increase in 2023 to cope with labor shortages. In a May 2023 poll, Hungerrush found that 36% of 1,000 Americans said they believed the large restaurant chain lacked enough staff to process orders, make food and serve food.
Aaron Nilsson, chief information officer of Jet's Pizza, a Michigan franchise, introduced a mobile robot powered by artificial intelligence to receive orders for pizza. He said:
"Now, most consumers expect their local pizza shops and their favorite cafes to remember their last order, know the credit card they want to use, and make it quick and easy for them to complete the order. Society has continued to move forward, predicting even small operators."
According to a 2024 Lendingtree survey, 78% of Americans now believe that fast food is a luxury, with prices rising more than 60% since 2014. Quick Service Restaurants (QSR) have been forced by this change to rethink value. Companies prioritize quality, convenience and technology over price competition in order to defend higher prices. Savneet Singh, CEO of a major restaurant technology business, said today’s value is more than price. It's about the whole experience. In addition, businesses are using technology to increase the value of this perception. AI-powered kiosks, pass-through technology and mobile ordering reduce waiting time and customize services, while kitchen automation improves reliability. Today, loyalty programs use data analytics to provide hyper-personalized rewards that promote consumer engagement and encourage duplicate visits.
However, affordability remains crucial. According to LendingTree research, the cost of fast food caused 62% of consumers to reduce purchases, which led to several businesses bringing back $5 in meal offers. The combination of price, quality, convenience and personalization is the new QSR value equation. QSR has the potential to redefine luxury goods as smart, easy-to-access services by using technology and loyalty.
Close-up image of colorful salad tray with toppings and seasonings.
In this article, we screened the online rankings to form an initial list of 20 fast food stocks. From the final dataset, we selected 12 stocks with the largest number of hedge fund investors, using Insider Monkey's database of 1,009 hedge funds in Q4 2024 to measure hedge fund sentiment in stocks. If two or more stocks have the same number of investment hedge funds, we will use the stock's year-on-year revenue growth.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter, returning 275% since May 2014, surpassing its benchmark point by 150 percentage points. ((See more details here).
Number of hedge fund holders: 47
Cava Group (NYSE: CAVA) is a fast casual restaurant brand in the United States specializing in Mediterranean-style food. Its unit economics and stable growth in same-store sales is similar to Chipotle's size. According to Clearbridge's growth strategy, the company is still in its early stages of realizing its unit development potential. With the development of brand awareness and the improvement of efficiency in new locations, there is a possibility of continued same-store sales growth. The stock has grown by more than 29% over the past year, making it one of them The best food stocks.
Cava Group, Inc. (NYSE:CAVA)'s strong momentum grew to $225.1 million with its outstanding 28% annual revenue, with sales of the same restaurant at 21.2%. Although it is still better than the previous year, the expert consensus on earnings per share of $0.05 is below $0.07. The company reiterates its commitment to developing its fast-casual Mediterranean concept by opening 15 new restaurants in the fourth quarter and plans to add 62-66 websites in 2025.
Key growth drivers include menu changes such as steaks that have successfully attracted more consumers, as well as updated reward programs designed to encourage repeated visits and interactions. Facing wider economic constraints, the cheap cost of Cava Group (NYSE: CAVA) remains a huge advantage, attracting budget-conscious customers.
Overall, Kava Ranked third On our list of the 12 best fast food libraries we buy now. While we acknowledge the potential of fast food companies, our belief is that AI stocks have higher returns and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than Cava but have less than 5 times its earnings, check out our report The cheapest AI stock.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.