CAVA vs. Hershey: Which Stock Is a Better Buy for 2027?

CAVA Group and Hershey represent two distinct investment opportunities as we look ahead to 2027. CAVA specializes in the rapid expansion of its Mediterranean restaurant brand, while Hershey maintains its dominant position in the snacking and confectionery industry.

CAVA operates a direct-to-consumer model across 29 states, with additional sales through grocery channels. The company reported revenue of nearly $1.2 billion in FY 2025, marking a 22.4% year-over-year increase. Net income reached $63.7 million, though the net margin decreased to 5.4% due to heavy investment in infrastructure and new store openings. As of December 2025, CAVA carries a debt-to-equity ratio of approximately 0.6x and has a current ratio of around 2.7x.

In comparison, Hershey generates approximately $11.7 billion in revenue annually, with a 4.4% growth rate in FY 2025. The company reported a net income of $883.3 million, but the net margin dropped to 7.6%. Hershey's debt-to-equity ratio is higher at about 1.2x, and its current ratio stands at roughly 1.2x. Free cash flow for Hershey amounted to $1.8 billion during the fiscal year.

The competitive landscape poses challenges for both companies. CAVA must effectively scale its digital infrastructure and manage new restaurant openings, while also relying on third-party suppliers for ingredients. Hershey, on the other hand, navigates raw material price volatility, particularly for cocoa, as well as cybersecurity threats and system implementations.

Valuation metrics favor CAVA, with a lower Forward P/E and P/S ratio compared to Hershey. While Hershey provides a dividend, its share of the U.S. candy market has declined. For long-term investors seeking an expansion-stage business, CAVA presents compelling growth potential due to its increasing store footprint and cash reserves.