Cava Group Analysts Boost Their Forecasts After Upbeat Results

CAVA Group Inc CAVA reported better-than-expected first-quarter financial results on Thursday.

Cava’s first-quarter revenue increased 28.2% year-over-year to $331.83 million, beating the consensus estimate of $326.88 million, according to Benzinga Pro. The Mediterranean fast-casual restaurant chain company reported first-quarter adjusted earnings of 22 cents per share, beating analyst estimates of 14 cents per share.

“In spite of economic uncertainty and challenging weather, CAVA’s first quarter results demonstrate the continued strength of our category-defining brand,” said Brett Schulman, co-founder and CEO of Cava Group.

Cava said it expects full-year same-restaurant sales growth to be between 6% and 8%, unchanged from prior guidance. The company expects to open between 64 and 68 new restaurants in total this year, up from prior guidance of 62 to 66 restaurants.

Cava shares fell 5% to trade at $94.13 on Friday.

These analysts made changes to their price targets on Cava following earnings announcement.

• Baird analyst David Tarantino maintained Cava Group with an Outperform rating and raised the price target from $105 to $115.
• Citigroup analyst Jon Tower maintained the stock with a Neutral and raised the price target from $114 to $115.

Considering buying CAVA stock? Here’s what analysts think: