#6 - CAVA Group (NYSE:CAVA)
Fast-casual dining company CAVA Group Inc. (NYSE: CAVA) is leaning into an emerging trend that could cause its stock to outperform the S&P 500 in the coming years: growing consumer demand for healthy, fast-casual dining options that emphasize fresh, high-quality, and flavorful ingredients.
CAVA's Mediterranean-themed menu aligns perfectly with this trend, offering dishes like grain bowls, salads, and pita-based meals that emphasize vegetables, lean proteins, and Mediterranean flavors. CAVA competes with Sweetgreen Inc. (NYSE: SG) and Chipotle Mexican Grill Inc. (NYSE: CMG).
The company’s appeal is evident in its strong same-store sales growth and impressive average unit volumes. CAVA is also pursuing a deliberate expansion strategy. By the end of 2024, it operated approximately 350 locations, with plans to grow to around 1,000—and possibly more.
Since going public in 2023, CAVA has delivered a total return of 215%. Analysts are forecasting 22% earnings growth for CAVA in the next 12 months. They also give the stock a price target of $142.12, which offers investors a solid 15% growth.
About CAVA Group
CAVA Group, Inc owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc was founded in 2006 and is headquartered in Washington, the District of Columbia.
- Current Price
- $94.98
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $131.47 (38.4% Upside)
