#2 - CAVA Group (NYSE:CAVA)
While Chipotle grabs most of the headlines, CAVA Group Inc. (NYSE: CAVA) is worth a look. In fact, Gabriel Osorio-Mazilli recently gave investors several reasons to believe that CAVA may be a better value to Chipotle.
First, the company’s value per restaurant of $30.3 million outpaces Chipotle. Analysts are also forecasting 12-month earnings growth of around 35%, which is higher than the 20% predicted for Chipotle. Fundamental investors are particularly drawn to positive, free cash flow, which CAVA delivered for the first time in its most recent quarter.
For the rest of 2024, CAVA expects to have 50 to 54 new restaurants, net. That’s higher than the forecast of 48 to 52 net openings it offered in February. This is likely to push earnings and same-store sales higher.
The CAVA Group analyst ratings on MarketBeat give the stock a Moderate Buy rating. Short interest of just over 10% may create short-term headwinds, but CAVA stock is another pick to consider owning on any dip.
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
- $138.89
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 8 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $120.36 (13.3% Downside)
