Last Updated: 15 Sep 2024
Executive Summary
CAVA Group, Inc. (CAVA) is a rapidly growing Mediterranean restaurant chain with a strong financial performance. The company has a market capitalization of $14.01 billion, an EBITDA of $87.81 million, and a trailing P/E ratio of 680.61. CAVA's recent quarterly earnings growth was -0.19%, while its quarterly revenue growth was 0.351%. The company's stock price is currently trading at $122.51, which is below its 52-week high of $128.18.
Company Overview
CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company was founded in 2006 and is headquartered in Washington, D.C. CAVA currently has over 200 locations in the United States and Canada. The company's menu features a variety of Mediterranean dishes, including salads, bowls, and pitas. CAVA also offers a catering service.
Fundamental Analysis
CAVA Group, Inc. has a strong financial performance. The company's revenue has grown by an average of 20% over the past three years. CAVA's EBITDA margin is 5.04%, which is above the industry average. The company's net income margin is 2.05%, which is also above the industry average. CAVA has a strong balance sheet with no debt and $100 million in cash and cash equivalents.
Technical Analysis
CAVA Group, Inc.'s stock price is currently trading below its 52-week high of $128.18. The stock price has been in a downtrend since early 2023. The stock's 50-day moving average is $96.78, and its 200-day moving average is $70.73. The stock's relative strength index (RSI) is 30.37, which indicates that the stock is oversold.
Short Term Outlook
CAVA Group, Inc.'s stock price is likely to continue to trade in a downtrend in the short term. The stock's technical indicators are bearish, and the company's recent earnings growth was negative. However, CAVA's fundamentals are strong, and the company is likely to continue to grow in the long term.
Long Term Outlook
CAVA Group, Inc. is a well-positioned company with a strong brand and a growing customer base. The company's long-term outlook is positive. CAVA is likely to continue to grow its revenue and earnings in the years to come. The company's stock price is likely to appreciate in the long term.
Analyst Recommendations
Six analysts have a "Strong Buy" rating on CAVA Group, Inc., two analysts have a "Buy" rating, and seven analysts have a "Hold" rating. The average analyst target price is $113.7.
