The recent volatility in restaurant chain stocks has provided "some opportunities," according to JPMorgan.While consumer confidence data has dipped, resulting in consumers becoming more careful in their discretionary spending, total industry supply growth has remained "surprisingly resilient, up 12% from 3Q18 to 3Q24 for a CAGR of ~2%," analyst John Ivankoe said in the note.CAVA GroupIvankoe upgraded the rating for CAVA Group Inc CAVA from Neutral to Overweight, while establishing a price target of $110.CAV ...

Mediterranean fast-casual restaurant chain Cava Group (CAVA 5.83%) is a rapidly growing business. It's often compared to Chipotle Mexican Grill, with investors seeing it as the next big growth stock in the restaurant industry. Last year was a stellar one for Cava as its shares skyrocketed 162%. This year, however, has been a far different story. The restaurant's stock has slumped 30% and is now down more than 50% from its 52-week high of $172.43. Is this just a bump in the road for the restaurant stock, and ...

Tariff concerns have already unwound the S&P 500's post-election gains.Well, that didn't take long.In just a matter of weeks, President Donald Trump's tariff threats have gone from what many believed to be just saber-rattling to a full-blown trade war with the United States' closest trading partners: Canada, Mexico, and China.Last Tuesday, the Trump administration imposed 25% import taxes on all goods from Mexico, 25% tariffs on non-energy goods from Canada with a 10% rate on energy products. It raised the ...

Growth stocks can help you multiply your savings over many years. Relatively small companies that are in the early stages of capturing their addressable market can be some of the most rewarding investments you ever make.Some promising stocks are trading off their highs and could be timely buys before a rebound. Here's why three Fool.com contributors believe Cava Holding (CAVA 1.78%), On Holding (ONON -5.79%), and Toast (TOST 1.76%) offer attractive return prospects.A fast-casual growth starJeremy Bowman (Ca ...

Core Insights - Cava's stock has experienced significant volatility, reaching an all-time high of $172 in late 2024 but subsequently falling 39% to around $87 [1] - Piper Sandler analyst upgraded Cava's stock to an overweight rating while reducing the price target from $142 to $115, indicating a potential upside of over 30% [2] Financial Performance - Cava reported a revenue increase of 33% in 2024, with same-restaurant sales rising 13% for the year and 21% year over year in Q4 [3] - The company operates 367 locations across 25 states and aims to expand to over 1,000 stores by 2032, highlighting significant market opportunity [4] Valuation Metrics - At its peak, Cava's stock traded at 320 times earnings and 19 times sales, which are considered high valuation multiples for a fast-growing restaurant chain [5] - Currently, Cava trades at 79 times earnings and 11 times sales, compared to industry leaders like Chipotle and McDonald's, which have never exceeded 10 times sales [6] Growth Potential - Cava is achieving restaurant-level operating margins comparable to larger competitors like Chipotle, indicating strong growth potential [7] - The stock is positioned to deliver market-beating returns in the long term, despite the recent sell-off [7]

Cava Group (CAVA -1.91%) has been one of the most exciting stocks on the market since its initial public offering (IPO) nearly two years ago. It's fast-growing and has a huge opportunity, making it an excellent candidate for growth investors.However, the market wasn't enthused about its most recent earnings report, and Cava stock is down about 30% over the past month. Let's see what's happening and whether or not this is an opportunity to buy on the dip.The new fast-casual superstarCava is a fast-casual res ...

Shares of Cava Group (CAVA -7.77%) stock dropped 30% in February, according to data provided by S&P Global Market Intelligence. There was negative investor sentiment about economic policy, and the market was underwhelmed by management's 2025 guidance.Adding some spice to fast-casual diningCava operates a small but growing chain of Mediterranean-inspired fast-casual restaurants. The concept is catching on, and Cava has been reporting high growth since going public almost two years ago. Management sees a larg ...

CAVA Group TodayCAVACAVA Group$87.55 -7.48 (-7.87%) 52-Week Range$56.03▼$172.43P/E Ratio190.33Price Target$131.47Add to WatchlistIt’s not common to see a restaurant chain perform double-digit same-store restaurant sales growth, also referred to as year-over-year (YoY) comparable (comp) sales growth, these days. The retail/wholesale sector is reeling from strapped consumers trying to survive food inflation. CAVA Group Inc. NYSE: CAVA is a chain of Mediterranean fast-casual restaurants taking the nation by s ...

Core Insights - Cava Group continues to show impressive results in the fast-casual restaurant sector despite a recent stock pullback of over 10% in 2025, with a year-over-year increase of more than 90% [1] Financial Performance - Same-store sales grew by 21.2% in fiscal Q4, driven by a 15.6% increase in guest traffic and a 5.6% rise in price and mix [2][3] - Overall revenue for Q4 increased by 28.3% year-over-year to $225.1 million, with a potential growth of 36.8% if not for a shorter quarter [4] - Restaurant-level margins improved by 50 basis points to 22.4% in Q4, with annual margins at 25%, up 20 basis points from fiscal 2023 [5] - Earnings per share soared to $0.66 from $0.02 a year earlier, and adjusted EBITDA climbed 60% year-over-year to $25.1 million [6] Cash Flow and Expansion - The company generated $29.9 million in operating cash flow for the quarter and $52.9 million in free cash flow for the year, indicating strong financial health [7] - Cava plans to open between 62 and 66 new locations in 2025, representing a growth of approximately 17% to 18% [10] Future Projections - For 2025, Cava projects same-store sales growth between 6% and 8%, with restaurant-level margins expected to range from 24.8% to 25.2% [8] - The company anticipates adjusted EBITDA to be between $150 million and $157 million [8] Strategic Initiatives - Cava implemented a 1.7% menu price increase in January, expected to be the only increase for the year, and is utilizing AI technology to enhance digital order accuracy [9] - The company aims to leverage menu innovation, social media marketing, and its loyalty program to drive traffic and sales [9] Market Position and Growth Potential - Cava's average unit volume (AUV) reached $2.9 million, approaching Chipotle's AUV of $3.2 million, indicating strong operational performance [12] - With only 10% of the locations compared to Chipotle, Cava has significant growth potential over the next two decades [13]

Core Viewpoint - Cava has demonstrated impressive growth in the restaurant industry, with significant revenue increases and expanding profit margins following its IPO in June 2023 [1][2]. Financial Performance - Cava achieved a revenue growth of 35.1%, reaching $954.3 million, driven by 58 new restaurant openings and a same-store sales growth of 13.4% [2]. - Average unit volumes increased from $2.6 million to $2.9 million, indicating strong performance from new stores and positive impacts from comparable sales [2]. - Adjusted EBITDA rose by 71%, from $73.8 million to $126.2 million, reflecting a surge in profits [2]. Future Growth Prospects - For 2025, Cava forecasts a slowdown in comparable sales growth to 6%-8%, with plans for 62-66 new restaurant openings and adjusted EBITDA of $150 million-$157 million, representing a 22% growth at the midpoint [5]. - The company aims for a restaurant-level profit margin of 24.8%-25.2%, which is consistent with the previous year [5]. - Cava's comparable sales jumped 21.2% in the fourth quarter, suggesting strong momentum heading into 2025 [8]. - The company plans to grow its store base by 18% this year, with a target of at least 1,000 restaurants by 2032, tripling its current count [8][10]. Market Position and Valuation - Cava's stock has decreased by 44% from its peak, primarily due to valuation concerns rather than business weakness [11]. - The stock trades at a price-to-earnings ratio of over 200 and close to 90 times trailing adjusted EBITDA, indicating high growth expectations are still factored into its valuation [11][12]. - Despite the high valuation, Cava is expected to continue its growth trajectory, similar to Chipotle, with ongoing store openings and improving profits [12].