While everyone is focused on AI, space and robotics, a once in a lifetime opportunity is lurking in the background - small to mid cap consumer cyclicals and non-cyclicals.
CAVA, BROS, SFM, BJ and CELH are 5 companies that have incredible growth potential and are perfectly following the steps of their large cap competitors - Chipotle, Starbucks, Kroger, Costco, and Monster. If these 5 stocks continue to execute the way the have been the past few years, they will continue to take market share from their “big brothers” and could even one day pass them.
All 5 companies are showing strong growth with continuous revenue and net income growth year over year. All 5 companies have a 5-10x smaller market cap than their large cap competitors.
The chain model has been perfected over the past few decades and these 5 companies are following all the right steps to become large caps in the next 10 years or less.
The cherry is placed on top of the sundae when you realize all 5 companies provide a better product than their competitors. Cava is the Mediterranean version of chipotle and is absolutely delicious - I have personally been eating it once or twice a week the past year. Dutch Bros is essentially crack for Gen Zers and has lines wrapping around the block. Sprouts farmers market is the perfect grocery store for every health focused person around who doesn’t want to eat processed food. BJs has virtually the same business model as Costco for better yearly costs. And celcius is the perfect energy drink for people who don’t want to feel like a total dirt bag drinking a Monster (no offense to the monster drinkers out there).
These 5 small cap consumer stocks have better products than their large competitors and have the potential to 5-10x in the next 5 years. That’s just my opinion, do your own research and let me know what you think.
I have positions in all 5 companies and would love to hear any criticism.