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Research Alert: CFRA Reiterates Strong Buy Opinion On Shares Of Cava Group Inc
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Research Alert: CFRA Reiterates Strong Buy Opinion On Shares Of Cava Group Inc
Aug 14, 2025 8:42 AM

11:15 AM EDT, 08/14/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $28 to $120 based on a blended valuation (75x 2026 EV/EBITDA; 9x 2026 EV/Sales). We lower our 2025 EPS to $0.65 (from $0.74) and lower our 2026's to $0.91 (from $1.00). Our revised estimates reflect slower comp growth than we expected in 2025 due to softer consumer spending pressuring restaurant traffic. However, we reiterate our Strong Buy opinion, based on CAVA's ( CAVA ) long-term growth potential. Further, we think the company is executing on multiple strategic priorities despite a comp slowdown, including store openings (+16.7% in Q2), improved labor efficiency (-24 bps Y/Y), and supply chain optimization (food costs flat Y/Y). CAVA's ( CAVA ) ability to offer extensive menu variety while maintaining a cost structure comparable to larger chains demonstrates operational sophistication that should drive long-term margin expansion. Additionally, potential menu innovations could provide near-term comp growth catalysts.

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