On Aug 9, CAVA Group, Inc.’s CAVA shares breached the $90 mark for the first time in the past 30 days. This Mediterranean restaurant chain also makes product offerings through grocery stores and provides online ordering platforms.
Share price of this Zacks Rank #3 (Hold) company, which is part of the Zacks Retail - Restaurants industry, has grown a whopping 110.1% in 2024. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CAVA Group, Inc. Price and Consensus
CAVA Group, Inc. price-consensus-chart | CAVA Group, Inc. Quote
Cava is an ever-growing company, with only 323 outlets as of the end of second-quarter 2024. However, it has expanded into several U.S. states, and that seems to have been sufficient for investors to be confident that it can continue on this expansion path.
Earlier in the year, the company reported first-quarter 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate for the fourth straight time. It reported adjusted earnings of 12 cents per share, beating the consensus estimate of 4 cents. Cava’s revenues increased 27.5% year over year to $259 million. The metric also surpassed the Zacks Consensus Estimate of $247 million.
The increase in revenues can be primarily attributed to 86 new restaurant openings during or after the first quarter of 2023, and these new locations are performing better than the company’s expectations. CAVA's same restaurant sales grew 2.3%, driven by a 3.5% rise due to higher menu prices and changes in product mix, which was slightly offset by a 1.2% decline in guest traffic. Investors are eagerly awaiting the company’s second-quarter numbers that are slated to be reported on Aug 22.
A couple of Cava’s competitors from the same Zacks sub-industry are Wingstop Inc. WING and Brinker International, Inc. EAT. Wingstop and Brinker carry a Zacks Rank #2 (Buy) and #1, respectively, and their stock has gone up 45% and 54.3% year to date.
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