Thanks to its fast growth in the restaurant industry, Cava Group (CAVA 10.50%) has drawn the attention of investors. As of this writing, the stock is up 140% from its initial public offering (IPO) price after less than two months on the market. It also helps that overall market sentiment seems to be strong right now. 

But investors shouldn't forget about the fast-casual chain that has long been dominating the restaurant sector. Chipotle Mexican Grill (CMG 2.41%) just reported its latest financial results. And while there's a lot to digest, I think it was another strong showing from the Tex-Mex specialist. 

Despite Cava's current appeal, it's best to take a bite out of Chipotle stock instead. 

New kid on the block 

To be fair, Cava's growth is impressive. Between 2016 and 2022, the company's revenue increased at a compound annual rate of more than 50%. Moreover, the current footprint of 263 stores is 12 times higher than at the end of 2016. Management made it clear that the business is in an aggressive expansion mode with plans to have at least 1,000 locations open across the country by 2032. 

Any leadership team can throw out ambitious targets to drum up heightened investor interest. The test for Cava will be whether it can execute. It does benefit, however, from a growing interest from consumers toward health and wellness. And because it focuses on menu items inspired by Mediterranean cuisine, which is a popular choice in the U.S., I wouldn't be shocked if the company achieves its stated growth target. 

But there's still uncertainty surrounding this outcome, and Cava has yet to achieve profitability. While its net loss shrank in the 16-week period that ended April 16 to $2.1 million, down from $20.0 million in the year-ago period, the business isn't there yet.

And with the quick run-up in the stock price, investors are being asked to pay a hefty price-to-sales multiple of 10.6 to buy shares right now. That valuation means the stock looks priced to perfection. 

Dominating the restaurant industry 

If you're looking to allocate capital to a top restaurant stock, perhaps it's best to focus on the proven winner. During the second quarter, Chipotle increased revenue 13.6% year over year to $2.5 billion. Same-store sales jumped 7.4%, and diluted earnings per share (EPS) soared 33.2%. While the EPS figure beat Wall Street's expectations, the sales number missed by $20 million, driving the stock down more than 9% following the announcement. 

That seems like a major overreaction to me, so investors should consider taking advantage of the dip in the stock price. Even though Chipotle shares definitely don't look cheap at a trailing price-to-earnings ratio of 48.6, the business continues executing flawlessly, regardless of the macroeconomic environment. 

What was really impressive in the latest quarter was Chipotle's expanding profitability. Management hasn't shied away from raising menu prices to offset rising food and labor costs. As a result, the operating margin in Q2 was 17.2%, up from 15.3% a year ago.

Cava gets all the attention for its growth, but we can't forget about Chipotle in this regard. The Tex-Mex chain opened 47 stores in the last quarter, bringing the total to 3,268 (as of June 30). The leadership team thinks North America can support 7,000 locations one day, not to mention Chipotle's overseas ambitions. It already has stores in the London area with plans to open in the Middle East starting next year. 

With higher annual sales per store, coupled with ongoing efficiency improvements that will lead to profitability gains, earnings are set to continue their upward trajectory in the decade ahead. Investors who are OK with the valuation should consider buying Chipotle shares today.