While the restaurant industry was buzzing with the news of Starbucks poaching Chipotle's CEO Brian Niccol, and subsequently adding billions of dollars to its market cap, another fast-casual chain was quietly hitting record highs. Cava, the burrito chain's Mediterranean doppelgänger, saw its share price close just shy of $99 on Friday.

Having risen more than 150% since its IPO last June, Cava is now worth some $11 billion, 2.6x what rival salad chain Sweetgreen is worth. That’s modest compared to fast-food giants like McDonald's ($200 billion) or Yum! Brands ($39 billion), but it’s remarkable because Cava only has 323 stores to its name. That values Cava at about $35 million per store.

Profit-packed pitas

In an industry that often leans on the franchise model, Cava is forging ahead with its company-operated strategy, in a similar vein to Chipotle, which owns and operates all but 1 of its 3,500+ stores. So, why such a high price tag for a Mediterranean salad chain?

Well, investors are generally happy to pay up for two things: profits today or profits tomorrow. Cava promises more of the latter, with its revenue surging 30% last quarter and ambitious plans to open 1,000 new locations over the next decade, with a portion including higher-margin digital drive-thrus.

Some investors have also been drawn to the tantalizing "Cava is the next Chipotle" narrative. Since its IPO in 2006, the Mexican Grill stock has delivered eye-popping returns of over 6,000%. For Cava, expectations will be high for the company’s Q2 earnings on Thursday, August 22nd.