$CAVA 0.55 Developing

Notable posts

• @wallstengine neutral 54 eng

  Citi says U.S. restaurant traffic fell 2.0% YoY for the week ended June 28, worse than the prior week’s 1.1% decline. By segment: Limited-service: -2.8% Full-service: +1.5% Fast casual: +2.2% Notable traffic: $CAVA: +23.1% $BJRI: +9.4% LongHorn / $DRI: +8.2% $BROS: +6.4% Chili’s: +5.6% $MCD: -3.9% $WING: -4.3% KFC / $YUM: -7.6% $WEN: -18.1% Burger traffic remains weak, while full-service and CAVA continue to outperform.

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• @wallstengine bullish 47 eng

  UBS Upgrades $CAVA to Buy from Neutral, Raises PT to $90 from $85 Analyst comments: "Reason: 1) solid SSS outperformance vs. peers even in a tough macro backdrop; 2) catalysts exist to sustain SSS momentum at or above the growth algorithm over the longer term, with support from UBS Evidence Lab data; 3) potential upside to the 1,000-unit growth target by 2032, with 15%+ store growth; and 4) attractive risk/reward on the pullback since April. CAVA remains a compelling growth story, which is increasingly scarce in the sector in the current environment, with differentiated menu offerings, multiple sales catalysts, ongoing investments to support sustainability, and healthy new unit returns. In addition to earnings upside potential, we believe sustained outsized growth, without the overhang concerns of select growth peers, should support shares re-rating higher. We see CAVA's premium valuation as justified given a clear path to industry-leading EBITDA growth over the coming years, with our $90 PT (was $85) representing ~38x (was 36x) NTM EBITDA in 12 months, based on 20%+ revenue and 25%+ EBITDA growth." Analyst: Dennis Geiger

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• @Ashton_1nvests bullish 15 eng

  $CAVA is one of the more interesting restaurant stocks right now. Revenue keeps moving higher, but the stock has pulled back hard from prior highs. That is usually where I start paying attention. The story here is pretty simple: CAVA is still growing the top line It is still expanding its footprint And the brand still seems to have real consumer demand The market is no longer pricing it like everything will go perfectly, and that is what makes it more interesting here. I’m not saying it’s cheap. I’m saying this is the kind of setup I like to watch closely: Strong business Strong growth Stock under pressure Sometimes that creates opportunity.

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