Stock Price & Analysis

Based on the recent data and market analysis, here is a concise assessment of CAVA stock:

Technical Analysis

• The stock is showing bearish signals with RSI at 30.16 indicating oversold conditions
• Currently trading at $103.59, down -4.02% in regular market trading
• Stock has fallen significantly from its recent highs, dropping from $172.43 (52-week high) to current levels

Fundamental Analysis

• Q4 2024 earnings report coming tomorrow (Feb 25) after market close
• Strong growth metrics with:
  • 39% revenue growth in Q3 2024
  • 18.1% same-store sales growth
  • Restaurant-level profit margins of 25.6%
• Currently operates 352 stores with plans to reach 1,000 stores by 2030

Key Concerns

• Extremely high valuation with forward P/E ratio of 134
• Recent operational issues reported at some locations including:
  • Quality inconsistencies
  • Service issues
  • Equipment downtime

Recommendation: SELL

The combination of:

1. High valuation multiples
2. Technical weakness
3. Pre-earnings uncertainty
4. Operational execution risks

Makes CAVA a risky investment at current levels. While long-term growth prospects remain attractive, waiting for a more attractive entry point after Q4 earnings would be prudent.

Based on the provided data and recent analyst reports, here's a price prediction for CAVA stock in 2025:

Technical Analysis

• Current price: $103.59 (as of Feb 24, 2025)
• The stock has shown significant volatility, dropping from recent highs of $150+ in December 2024 to current levels around $103
• RSI-14 at 30.16 indicates oversold conditions
• MACD showing bearish momentum with -1.51 signal line

Fundamental Drivers

• Strong growth metrics with 39% revenue growth and 18% same-store sales growth in Q3 2024
• Expansion plans to reach 1,000 stores by 2030 from current 352 locations
• Improving profitability with net income growing from $6.8M to $18M year-over-year in Q3 2024

Price Target Analysis CAVA stock is expected to reach $135-140 by end of 2025, driven by:

• Continued strong same-store sales growth
• Accelerated store expansion execution
• Margin improvements from scale benefits
• Current technical oversold conditions suggesting potential rebound

The prediction factors in both bullish catalysts like robust growth and bearish risks like high valuation (P/E of 159). Most Wall Street analysts currently have a consensus price target about 8% above current levels, but successful execution of growth plans could drive further upside.

The S1 support level for CAVA Stock is $93.53 ,The R1 resistant level for CAVA Stock is $128.65.

As of the end of day on 2025-02-28, the price of CAVA Stock was $95.01.

The target price for CAVA Stock according to analyst rating is 155.67, with the highest price target at 182.00 and the lowest at 127.00. Analysts have a Moderate Buy rating on CAVA Stock overall.

The market cap of CAVA is $11.0B.

Based on the provided data and recent market analysis, here's a concise evaluation of CAVA's valuation:

CAVA appears significantly overvalued at current levels based on several key metrics and analysis:

Valuation Concerns:

• Trading at 263.5x forward earnings, which is extremely high even for a growth stock
• Current price of $103.79 represents a substantial premium compared to analyst consensus targets
• Market cap of $11.9B appears excessive for a company with $728.7M in annual revenue

Growth vs. Valuation:

• Revenue growth of 29% year-over-year (2022-2023)
• Net income improved from -$59M to $13.3M
• However, projected 20% revenue growth and 25.7% earnings growth for next year don't justify the current multiple

Technical Indicators:

• RSI-14 at 30.16 indicates oversold conditions
• Trading below all major moving averages (SMA 5,10,20)
• MACD showing bearish momentum with -1.51 reading

Market Sentiment:

• JP Morgan recently downgraded to "neutral" with $77 price target
• Wall Street consensus suggests limited upside, with average target only 8% above current levels
• More than half of covering analysts recommend "hold" at current prices

The stock appears overvalued based on both fundamental and technical factors, with current valuation pricing in perfection despite moderating growth rates and increasing competition in the fast-casual space.

CAVA Group, Inc. operates a category-defining Mediterranean fast-casual restaurant brand. The Company operates approximately 309 fast-casual CAVA restaurants in 24 states and Washington, D.C. The number of CAVA restaurants excludes two locations operating under a licensing arrangement and digital kitchens. Its Mediterranean cuisine unites taste and health, with a menu that features chef-crated and customizable bowls and pitas. Its dips, spreads, and dressings are centrally produced and sold in grocery stores. Its menu fulfills a range of dietary preferences, from hearty and indulgent to vegan, vegetarian, gluten-free, dairy-free, paleo, keto, and nut-free diets. The Company's guests can choose a chef-curated meal or a build-your-own-bowl or pita using its 38 ingredients with over 17.4 billion combinations. It has developed multi-channel access to in-restaurant dining, digital pick-up, drive-thru pick-up in select restaurants, delivery, catering, and consumer packaged goods offerings.

Based on the available data and analyst reports, CAVA stock is projected to reach approximately $158-170 by 2030, driven by its ambitious expansion plan to operate 1,000 restaurants by 2030. The growth trajectory is supported by strong same-store sales growth of 18.1% and robust restaurant-level profit margins of 25.6%. However, the current high valuation with P/E ratio over 300 suggests potential volatility in the near term.

CAVA has a total of 8100 employees.