Expansion-Stage Stocks

CAVA is an early-stage national fast-casual chain with strong unit economics (AUV ~ $2.9M and mid-20s restaurant-level margins) and a long runway to expand store count toward management's 1,000-restaurant goal. If it sustains new-unit productivity while holding margins, operating leverage + unit growth can drive multi-year earnings power growth.

Dutch Bros has a proven, transaction-driven drive-thru beverage model and is still early in national penetration. With >1,000 shops and guidance targeting ~160 openings in 2025 and ~175 in 2026, the next leg is about compounding unit growth while improving shop-level contribution and corporate leverage. If transactions stay positive and new-unit productivity holds as the footprint expands, earnings power can scale faster than revenue.

Samsara has a proven subscription + device platform for asset-heavy operations and is now hitting a classic scaling inflection: ARR is large ($1.75B) and still growing ~30% YoY, large-customer adds are at record levels, and the company just posted its first GAAP profitable quarter while generating meaningful free cash flow. If enterprise penetration and product attach (AI safety, maintenance, workflows, etc.) keep driving net new ARR, operating leverage should expand and the business can compound value for several years.

Klaviyo has a proven, high-gross-margin SaaS model with strong retention and a large customer base. The next phase is scaling earnings power through (1) multi-product adoption (marketing + analytics + service) to expand revenue per customer, (2) continued upmarket motion shown by rapid growth in $50k+ ARR customers, and (3) international expansion where growth is already outpacing the core. With management targeting meaningful non-GAAP operating margin expansion by FY28, the setup is a classic 'grow + harvest operating leverage' story if NRR and large-customer growth stay healthy.

monday.com is past PMF with repeatable SaaS economics and is now scaling execution: enterprise penetration + multi-product attach + operating leverage. Q3 2025 showed 26% YoY revenue growth ($316.9M), stable net dollar retention (111%), rising enterprise mix (>$50k ARR customers are 40% of ARR), and strong backlog signal (RPO $747M, +36% YoY). If it sustains mid-20s growth while holding ~mid-teens non-GAAP operating margins, equity value can compound via both growth and margin/FCF durability.

Planet Fitness runs a proven, capital-light franchise model with ~20.7M members and 2,795 clubs as of Sep 30, 2025. The next leg is execution-driven: sustain ~6-7% unit growth while compounding higher-margin royalties through member growth, pricing/ARPU lift, and marketing efficiency. Management's Investor Day laid out a 2026-2028 "growth algorithm" (low-double-digit revenue CAGR, mid-teens adjusted EBITDA CAGR), which-if delivered-should translate into durable operating leverage and earnings power growth.

Wingstop is in the execution phase of a proven, mostly-franchised model: unit growth is running high-teens with record openings, AUVs remain ~>$2.0M, and corporate earnings power scales with high-margin royalty revenue. Near-term domestic comps have turned negative after lapping very strong 2024 growth, but system-wide sales are still growing and the next leg is about (1) sustaining development velocity, (2) improving throughput via Smart Kitchen / ops tech, and (3) expanding internationally as the system scales toward >10,000 restaurants worldwide.

Sprouts is in a scale-up phase where the model is proven (strong comps, structurally improved margins, robust cash generation) and the next leg is about throughput and repeatable expansion. Management targets ~10% unit growth with attractive new-store economics (avg ~$3.8M cash investment, ~$13M year-1 sales, and low-to-mid-30% cash-on-cash returns by year 5). With the company citing potential for 1000+ stores and an advantaged supply chain footprint, execution on store rollout + margin stability + ongoing buybacks can compound per-share earnings power over a multi-year horizon.

Five Below is in the "throughput + footprint" phase: the concept is proven, store openings are repeatable, and the next leg is scaling distribution, new geographies, and operating leverage. Recent quarters show strong transaction-driven comps and rapid sales growth, supporting confidence in a durable playbook. If management sustains healthy comps while growing stores toward a long-term 3,500+ U.S. opportunity, earnings power can compound via gross margin discipline and SG&A leverage.

Boot Barn sits at a clean expansion-stage inflection: the concept is proven (sustained positive comps and double-digit operating margins), the store-opening machine is active (70-store FY2026 plan), and management has expanded the long-term U.S. store opportunity to ~1,200 stores. If comps stay positive and merchandise margin holds/improves, the next leg is about throughput (openings), geography (market white space), and operating leverage (SG&A as % of sales).

Floor & Decor's warehouse-format flooring concept is proven: high gross margins (~43%+), repeatable store openings, and a durable value proposition (deep in-stock assortment + everyday low pricing via direct sourcing). The current setup is an execution + cycle story: demand has been pressured by low existing home sales (comps negative in parts of 2024-2025), but the company has continued to grow sales via new stores and deliver EPS growth via operating discipline. As the housing turnover backdrop normalizes, comps/transactions can inflect while store growth continues toward management's long-term target of at least 500 U.S. warehouse stores-creating operating leverage on a larger base.