Cava Group's (CAVA 1.29%) stock price has more than doubled since the beginning of the year. The fast-casual Mediterranean restaurant chain is expanding rapidly and building a customer base eager for new healthy fast-food choices.

Still, such concepts do not necessarily translate into lucrative stock picks, and for every Chipotle Mexican Grill (CMG 0.39%), you can find numerous other restaurant stocks that have struggled to move higher over time. Fortunately for Cava shareholders, the business has made significant gains. The question for investors still on the sidelines is whether they have waited too long to buy the restaurant stock.

The state of Cava Group stock

Part of the appeal of Cava Group is that many perceive it as a sort of second-chance stock for those who missed out on the approximately 140-fold gain in Chipotle delivered from its 2006 initial public offering (IPO) price to its current level.

On the surface, such a comparison makes sense. Both are fast-casual restaurants that emphasize food made with healthy ingredients. Also, since Cava specializes in Mediterranean cuisine, it does not compete with the Mexican food offered by Chipotle.

Moreover, Cava operated 323 restaurants as of April 21 -- the end of its fiscal first quarter -- making it less than one-tenth the size of Chipotle and its approximately 3,500 locations. Achieving higher-percentage growth is easier from a smaller base, a factor that would presumably favor Cava.

However, Cava could face more limitations than Chipotle. For one, Cava has stated a long-term goal of having 1,000 restaurants by 2032. While Cava could increase that target later, Chipotle management says it expects to eventually have 7,000 locations in North America, meaning it plans to grow more than Cava.

Cava could also struggle to attract more customers as quickly as it hopes. Despite the recent growth in the popularity of Mediterranean food, interest in it lags well behind Mexican food, another indication that Cava's growth potential might not match Chipotle's.

Improving financials

Results have justifiably stoked investor optimism for Cava. Its $259 million in fiscal first-quarter revenue was a 30% yearly increase. That's not as strong as its 60% surge in fiscal 2023, but it's still a rapid rise. Since same-restaurant sales climbed 2% yearly, most of the growth came from the 60 new restaurants the company opened during the trailing 12 months.

The company limited its operating expense growth to 22%, resulting in an operating profit. With that, net income for the fiscal first quarter was $14 million, improving from a $2 million loss in the prior-year quarter.

Although management did not offer revenue guidance, it said it expects to open between 50 and 54 restaurants over the next year, which should help it maintain a rapid growth pace.

Still, with the aforementioned share price increase, its price-to-sales (P/S) ratio has spiked to 13, well above Chipotle's ratio of 8. This is concerning given the challenging competitive landscape faced by Cava. Since Chipotle is a more developed chain offering a more popular cuisine, prospective investors may question whether Cava's stock is worth its premium price.

Where is Cava stock headed?

Amid the continuing growth and rising valuations, the answer to the question of whether this is too late or too early to buy Cava stock depends on investors' point of view.

Those who are not shareholders already might be too late to capitalize on the recent surge in the price. Those prospective buyers would have to pay a significantly higher valuation for the enterprise.

However, management seems to have built a successful restaurant chain. Given its growth and rising popularity, it holds the potential to rise much higher over the long term, meaning investors still could be able to profitably buy into this company at this relatively early stage.

Investors who choose to buy now should probably accumulate their stakes gradually since the stock looks increasingly unpredictable in the near term. Still, Cava Group's rapid expansion plans appear to pave the way for rising revenue and profits over time.