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Research Alert: CFRA Maintains Hold Opinion On Shares Of Cava Group Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Cava Group Inc.
Apr 22, 2026 12:24 PM

03:00 PM EDT, 04/22/2026 (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 raise our 12-month target by $14 to $105, based on an equal-weighted blended valuation (55x 2027 EV/EBITDA; 6x 2027 EV/sales). We raise our 2026 EPS estimate to $0.80 from $0.79 and lower 2027's to $1.19 from $1.27, reflecting more limited EBITDA margin expansion despite ongoing comparable sales momentum. We maintain our Hold opinion as shares already reflect CAVA's ( CAVA ) substantial growth opportunity. The company's leadership in Mediterranean cuisine and significant U.S. whitespace support high revenue growth expectations, which we view as warranted given strong unit economics. However, consensus margin expansion assumptions appear optimistic given persistent headwinds from tariffs and elevated food costs, particularly for olive oil and proteins. While CAVA ( CAVA ) has demonstrated pricing power, we expect restaurant-level margin improvement will be more gradual than anticipated. We believe shares price in flawless execution on both unit growth and margin expansion, leaving limited room for error.

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