Kava Group Today
- 52-week range
- $ 56.03
▼
$ 172.43
- P/e ratio.
- 187.12
- Value is valuable
- $ 131.47
Nowadays, they do not often see that the restaurant network performs a double -digit growth in restaurant sales in the same store, which is also called comparable sales growth compared to last year.
The retail trade/wholesale trading sector covers from attached consumers trying to survive food inflation. Cava Group Inc. NYSE: Cava It is a network of Mediterranean restaurants of a fast toilet taking the nation by storm.
In the fourth quarter of 2024, the company announced the sales of YOY COMP 21.2%, since it opened 15 new restaurants to bring the total amount to 367 in the United States.
BYOBS uprising, but Cava is best of all of them
Cava is a construction operation (BYOB) in style Chipotle Mexican Grill Inc. NYSE: CMG But with Mediterranean food, which includes proteins, such as lamb meatballs, grilled chicken, steak and phalafel. Clients can mix and combine 38 ingredients and fillings for more than 17.4 billion of bowls. Sweetgreen Inc. NYSE: SG This is another popular BYOB restaurant that has gained popularity from the moment of adding its caramelized garlic steak on the menu. However, Kava surpassed both of them with sales of 21.2% COMPS. Chipotle only removed 5.4%, and Sweetgreen – only 4% of Comps sales in the corresponding fourth quarters.
Instead of surfacing in this news, Cava shares were sold almost 10% on the following days, providing investors with the possibility of Buy-The Dip.
Here are the two reasons why investors ran for hills on profit for 4 quarter.
There are two reasons why Cava shares were sold after the announcement of its profits. Firstly, while Cava phenomenally performed COMP sales well, he missed the assessments of analysts for production (EPS) for 2 cents. The company said that EP 5 cents, but analysts were waiting for 7 cents per fourth quarter.
From there, the metrics were reliable. Revenue increased by 28.3% of guests to $ 227.4 million. The USA, which would surpass consensus grades of $ 223.25 million. USA. Pedestrian traffic increased by 15.6%, and profit at the restaurant level increased by 50 B.P. up to 22.4% with a profit at a restaurant level in the amount of 50.4 million dollars. USA.
The adjusted net income increased to $ 6.5 million. USA, compared with 2 million per year. Adjusted profit to interest, taxes, depreciation and depreciation (EBITDA) increased to $ 25.1 million. USA, compared with 15.7 million dollars. USA during the year. Cava opened 15 new places, which is 18.8% of the increase in restaurants by 18.8% to 367.
Comprehensive sales estimates decreased from 13.4% in 2024 to 6% to 8% in 2025.
The second reason why some investors panicked the shares was the forecast for the next year. Despite the fact that in the fourth quarter and 13.4% the mountains of 21.2% throughout the year were city and 13.4%, the company expects that sales of 2025 COMP are growing (only) from 6% to 8%. This pulled Steam directly from the shares, forcing the shares to fall 10% the next day.
Low leadership management?
Cava Group promotion today
$ 131.47
52.73% growthModerate purchase
Based on 16 ratings of analysts
| High forecast | $ 175.00 |
|---|---|
| Average forecast | $ 131.47 |
| Low forecast | $ 100.00 |
Cava Group shares forecast
Another line of thinking is that the leadership deliberately sets the bar so that they can jump over it. This is called a low level of leadership, underestimation and excessive assessment. Loobol is less extreme than a sinking kitchen, where the leadership throws all the bad news ahead to install a bundle overly reduced to get by. If so, then buying a DIP can be a firm plan of the game, especially at support levels.
Piper Sandler modernizes Cava to overweight
One analyst sees this potential to add shares. Piper Sandler analyst Brian Mallen sees in restaurants of rapid Kaliala as a secular growth trend, and Cava one of the best ways to get its piece, especially when shares are traded from 15% to 20% from the beginning of the year (YTD).
Mallen said: “We think that Cava is one of the most positional companies in our lighting in order to navigate in any environment. In particular, we note that Cava occupied only ~ 15% of the prices on the menu compared to 2019 (compared with FAFH by ~ 30% and more for certain colleagues in restaurants); And although this is probably not the only reason for the excellent movement of the KARA, it almost certainly helped. ” FAFH refers to food away from home.
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